During the extensive remodeling of a residence, the owner of the residence granted a local gas and electrical
company an easement for underground electrical power lines and natural gas pipes to run through the lot on
which the residence was located. The easement was properly recorded by the company. Two years after the
remodeling was completed, the owner gave the property to his daughter. The owner transferred the lot
together with the residence by general warranty deed to the daughter. Recently, the daughter sold the
property at fair market value to a third party and transferred the lot together with the residence by a special
warranty deed to the third party. Each deed was properly recorded by the grantee shortly after it was
received. Each deed contained a covenant against encumbrances, but neither contained a mention of the
easement. After moving into the residence, the third party contacted a contractor about building a swimming
pool on the property. The contractor discovered the existence of the underground electrical lines and gas
pipes and informed the third party that the cost of rerouting the underground utilities would more than double
the cost of the project.
If the third party sues the daughter for breach of warranty for the presence of the utility lines and pipes, will
the third party prevail?