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S. 7 (1).

SALES AND OTHER TRANS

ACTIONS.

Covenants for
Title.

By tenant for

life and

It is not material that he actually has anything to convey, he may be made in terms to convey simply for the purpose of giving an implied covenant. Therefore, in the case of a conveyance by tenant for life and remainderman if they both convey as beneficial owners a covenant will be implied by both as to the whole fee, joint or several or both, according to the mode in which they convey.

So also in a conveyance by tenant for life, and remainderman for life, or in tail or in fee, or by joint tenants, or tenants in common, there can remainderman. be implied covenants joint or several or both, as to the entirety or part, as may be required.

By joint tenants or tenants in common.

Where all

convey as beneficial owners.

Each as beneficial owner.

All jointly and

each sepa

rately.

Each in respect of whole.

Under appoint

ment.

Conveyances

to uses.

Conveyance by tenant in tail.

Conveyance made by several.

The following examples may be useful by way of explanation :-
(1.) Where all jointly convey the whole as beneficial owners there
will be implied a joint covenant as to the whole;

(2.) Where each conveys as beneficial owner only in respect of a
share or an estate for his life or a remainder in fee there will be
implied a several covenant by each as to the share or estate
which he conveys;

(3.) Where all convey jointly and each conveys severally as beneficial owners and owner in respect of the whole there will be implied a joint and several covenant as to the whole;

(4.) Where each conveys severally as beneficial owner in respect of the whole there will be implied a several covenant as to the whole;

(5.) Where trustees convey under a power, the covenant of the tenant for life is obtained either by his being made to convey and confirm, or under subs. (2) by directing the trustees to convey;

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(6.) An appointment under a power by a person as beneficial owner," trustee," &c., implies a covenant, the appointment being a conveyance: see s. 2 (v);

(7.) Under a conveyance to uses the implied covenant is with the grantee to uses, being the person to whom the conveyance is made. The covenant with him enures for the benefit of the persons in whom the uses are executed as in the case of an actual covenant. The implied covenant is in fact an actual covenant of the ordinary kind incorporated in the con

veyance;

(8.) A tenant in tail is by s. 15 of the Fines and Recoveries Act empowered to dispose of the fee simple. He, in fact, conveys the fee under a statutory power, and the whole fee is the subject-matter of conveyance. His covenant therefore applies ro the whole fee simple.

Where property is sold by several co-owners they together form one owner, and it is conceived they ought to covenant jointly and severally as to the whole, but the practice on this point is not uniform.

The covenants in this section are applicable to property of all kinds, S. 7 (1), (A.). including policies of assurance, reversionary interests in personal estate, choses in action, and personal chattels : see the definition of conveyance, s. 2 (v).

SALES AND

OTHER TRANS

ACTIONS.

Title. Covenants

applicable to all property. On conveyance

beneficial

owner.

ment.

(A.) In a conveyance for valuable consideration, other Covenants for than a mortgage, the following covenant by a person who conveys and is expressed to convey as beneficial owner (namely): That, notwithstanding anything by the person who so for value, by conveys, or any one through whom he derives title, otherwise than by purchase for value, made, done, Right to conexecuted, or omitted, or knowingly suffered, the vey. person who so conveys, has, with the concurrence of every other person, if any, conveying by his direction, full power to convey the subject-matter expressed to be conveyed, subject as, if so expressed, and in the manner in which, it is expressed to be conveyed, and that, notwithstanding anything as aforesaid, that subject-matter shall remain to and be quietly entered upon, received, and held, occupied, Quiet enjoyenjoyed, and taken, by the person to whom the conveyance is expressed to be made, and any person deriving title under him, and the benefit thereof shall be received and taken accordingly, without any lawful interruption or disturbance by the person who so conveys or any person conveying by his direction, or rightfully claiming or to claim by, through, under, or in trust for the person who so conveys, or any person conveying by his direction, or by, through, or under any one not being a person claiming in respect of an estate or interest subject whereto the conveyance is expressly made, through whom the person who so conveys derives title, otherwise than by purchase for value; and that, freed Freedom from and discharged from, or otherwise by the person who incumbrance. so conveys sufficiently indemnified against, all such estates, incumbrances, claims, and demands other than those subject to which the conveyance is expressly made, as either before or after the date of the

S. 7 (1), (A).

SALES AND OTHER TRANS

ACTIONS.

Covenants for
Title.

Further assur

ance.

How conveying party to be described.

conveyance have been or shall be made, occasioned, or suffered by that person or by any person conveying by his direction, or by any person rightfully claiming by, through, under, or in trust for the person who so conveys, or by, through, or under any person conveying by his direction, or by, through, or under any one through whom the person who so conveys derives title, otherwise than by purchase for value; and further, that the person who so conveys, and any person conveying by his direction, and every other person having or rightfully claiming any estate or interest in the subject-matter of conveyance, other than an estate or interest subject whereto the conveyance is expressly made, by, through, under, or in trust for the person who so conveys, or by, through, or under any person conveying by his direction, or by, through, or under any one through whom the person who so conveys derives title, otherwise than by purchase for value, will, from time to time and at all times after the date of the conveyance, on the request and at the cost of any person to whom the conveyance is expressed to be made, or of any person deriving title under him, execute and do all such lawful assurances and things for further or more perfectly assuring the subject-matter of the conveyance to the person to whom the conveyance is made, and to those deriving title under him, subject as, if so expressed, and in the manner in which the conveyance is expressed to be made, as by him or them or any of them shall be reasonably required:

(in which covenant a purchase for value shall not be deemed to include a conveyance in consideration of marriage):

The meaning of clause A is that the actual words of conveyance must describe the conveying party as "beneficial owner," or "settlor," or otherwise (as intended): (see the 4th Sch. to the Act, Forms I., III., and IV.). It is not sufficient to recite that he is seised in fee, and then for him to convey simply. He must be expressed to convey as

(B).

"beneficial owner," "settlor," or otherwise as the case may require. S. 7 (1), (A), The object of requiring these special words of description to be used is to enable those who do not wish to adopt the Act to frame their conveyances, mortgages, &c., in the same form precisely as before the OTHER TRANSAct.

SALES AND

ACTIONS.

Covenants for
Title.

Word "con

vey

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not

necessary.

It is not necessary, in order that a conveyance may operate under this section, to use the word "convey" or "conveyance." These words include all the operative words "assign," &c., ordinarily used, see s. 2 (v), and may be used instead of the word "grant," see s. 49, and the schedules to this Act where "convey" is used to pass a fee simple, and s. 57, which enacts that deeds using expressions to the like effect as in the 4th schedule shall be sufficient. Accordingly it is immaterial Any operative what word is used; in a conveyance in fee "grant" may be used; in a conveyance under a power "appoint" may be used; and in the case of personal estate "assign" may be used, all these words being equally capable of attracting the covenants in this section.

word sufficient.

The expression "purchase for value" is not to include a conveyance "Purchase in consideration of marriage for the reason that the covenant E, post, by for value." a settlor is a limited covenant. Therefore a person deriving title under

a marriage settlement should covenant as to the acts of the settlor in

the same manner as he would covenant for the acts of his ancestor if he were conveying as heir at law.

A voluntary conveyance (if it be not a settlement to which covenant Covenants in E is made applicable) still requires an express covenant, if any is voluntary intended to be given, but in most cases no covenant would be given.

If A. takes by conveyance on a sale by B., who takes under a settlement, voluntary or otherwise, made by C., then B. derives title "otherwise than by purchase for value" through C., and in the conveyance by B. to A. the implied covenant by B. would extend to the acts of C. But A. does not derive title "otherwise than by purchase for value" through B. and consequently not through C., and on a conveyance by A. his implied covenant would extend only to his own acts. This appears clear if we consider that, assuming the settlement voluntary, C. could defeat it by conveyance for value before A.'s purchase but not afterwards. The implied covenant therefore extends back only to acts from the last conveyance for value not being a settlement.

conveyance.

How far back covenant ex

tends.

of leaseholds

for value, by

(B.) In a conveyance of leasehold property for valu- On conveyance able consideration, other than a mortgage, the following further covenant by a person who conveys and is ex- beneficial pressed to convey as beneficial owner (namely):

owner.

That, notwithstanding anything by the person who so Validity of conveys, or any one through whom he derives title lease. otherwise than by purchase for value, made, done,

executed, or omitted, or knowingly suffered, the

S. 7 (1), (B), (C).

SALES AND OTHER TRANS

ACTIONS.

Covenants for

Title.

On assignment

of leaseholds

express covenant by purchaser still required.

On mortgage, by beneficial

owner.

Right to convey.

Quiet enjoy

ment.

lease or grant creating the term or estate for which the land is conveyed is, at the time of conveyance, a good, valid, and effectual lease or grant of the property conveyed, and is in full force, unforfeited, unsurrendered, and in nowise become void or voidable, and that, notwithstanding anything as aforesaid, all the rents reserved by, and all the covenants, conditions, and agreements contained in, the lease or grant, and on the part of the lessee or grantee and the persons deriving title under him to be paid, observed, and performed, have been paid, observed, and performed up to the time of conveyance:

(in which covenant a purchase for value shall not be deemed to include a conveyance in consideration of marriage):

The Act does not provide for the covenant of indemnity against rent and covenants by a purchaser on the assignment of leaseholds. The circumstances differ so much that a general covenant could not easily be framed. Moreover the purchaser does not always execute the deed.

(C.) In a conveyance by way of mortgage, the following covenant by a person who conveys and is expressed to convey as beneficial owner (namely):

That the person who so conveys, has, with the concurrence of every other person, if any, conveying by his direction, full power to convey the subjectmatter expressed to be conveyed by him, subject as, if so expressed, and in the manner in which it is expressed to be conveyed; and also that, if default is made in payment of the money intended to be secured by the conveyance, or any interest thereon, or any part of that money or interest, contrary to any provision in the conveyance, it shall be lawful for the person to whom the conveyance is expressed to be made, and the persons deriving title under him, to enter into and upon, or receive, and thenceforth quietly hold, occupy, and enjoy or take and have, the subject-matter expressed to be conveyed,

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