Breach of Covenant of Quiet Enjoyment in Rhode Island

Background

“Under Rhode Island law, a warranty deed conveys fee simple title to real property along with five statutory covenants. Among the covenants are the warranties that at the time of delivery of the deed, the grantee is lawfully seised in fee simple of the granted premises, and that the granted premises are then free from all incumbrances." (See Rhode Island Res. Recovery Corp. v. Brien, C.A. No. PB 10-5194, at *1 (R.I. Super. July 16, 2012).)

“Further, the deed warrants that the grantee will at all times after the delivery of such deed peaceably and quietly have and enjoy the granted premises. Colloquially, these warranties are known as the covenants of seisin and quiet enjoyment.” (See id.)

“The nature of the covenant of quiet enjoyment protects a purchaser of land from losses due to claims of superior title to the land.” (See Magnusen v. Stedman, 91-0495 (1997), C.A. No. 91-0495, at *1 (R.I. Super. Jan. 8, 1997).)

“This warranty is a future warranty which normally runs with the land to remote grantees, and the breach of which occurs upon the eviction of the landowner.” (See id.)

“Rhode Island General Laws (1956) subsection 34-11-15 follows this rule and sets out that the covenant of quiet enjoyment protects the grantee and his assignees at all times after the transfer.” (See id.)

General Information for Complaints and Motions

“The covenant of quiet enjoyment is normally provided to the purchaser of real estate by a seller, but has also been extended to leaseholds.” (See Hopkins v. Taylor, P.C. No. 04-4795, at *3 (R.I. Super. Oct. 21, 2009).)

“The covenant of general warranty and the covenant of quiet enjoyment are considered to be substantially similar in their effect except when someone varies the language of either covenant.” (See Bitting v. Gray (2006) 897 A.2d 25, 35.)

“A seller who conveys real property with warranty covenants, warrants to the grantee inter alia, that he or she is lawfully seised in fee simple of the granted premises; that the devised property is free of all encumbrances; that the grantee shall at all times after the delivery of the deed peaceably and quietly have and enjoy the deeded premises; and that the seller shall defend against any claim against the premises.” (See id.)

“[T]he covenants of quiet enjoyment and warranty of title are prospective in nature and come into play after the delivery of the deed.” (See id.)

Standard of Review and Burdens of Proof

“It is well settled by the modern authorities, that under the covenant of quiet enjoyment, even when standing alone, or even under the covenant of general warranty, the covenantee may voluntarily yield to claims, upon a paramount title made by persons having the power to enforce those claims, particularly if accompanied with threats of suit, and thereupon maintain his action upon the covenant.” (See Greene v. Creighton (1861) 7 R.I. 1, 5.)

“A breach of the covenant of quiet enjoyment would terminate the lease and discharge the lessee from any further liability.” (See Frederick Realty Corp. v. General Oil Co. (1969) 105 R.I. 56, 60.)

“Typically in order to recover for breaches of quiet enjoyment and warranty to defend, an actual eviction must take place, such that title to the property is disturbed.” (See 282 Cnty. Rd., LLC v. AAA S. New England, C.A. No. PB 09-7447, at *1 (R.I. Super. Aug. 25, 2014).)

“Damages for partial breach of a covenant for quiet enjoyment are based upon the relative value of the part as to which title fails" and the purchaser has been evicted.” (See Magnusen v. Stedman, 91-0495 (1997), C.A. No. 91-0495, at *1 (R.I. Super. Jan. 8, 1997).)

The Court’s Decisions

It is well settled that “a deficient condition is defined as any land restrictions, defect, malfunction, breakage, or unsound condition existing on, in, across or under the real estate of which the seller has knowledge.” (See Bitting v. Gray (2006) 897 A.2d 25, 35.)

It is also well settled that “the seller of real estate is required to provide the buyer with a copy of any previous surveys of the real estate that are in the seller's possession and notify the buyer of any known easements, encroachments, covenants or restrictions of the seller's real estate.” (See id.)