In New York, a covenant of further assurance is a contract between the seller and buyer of real property, in which the seller promises to provide certain things to the buyer. This is commonly used in apartment buildings, where the sellers promise to finish a certain number of apartments or to provide services for the common areas. To learn more about a covenant of further assurance, contact MacGregor Abstract.
A covenant of further assurance is often coupled with an affirmative covenant (also known as an “express warranty”), which is another type of contract between two parties that creates a new legal duty for one party (in this case, the seller) to act in a certain way toward another party (in this case, the buyer).
The main difference between an affirmative covenant and a covenant of further assurance is that while an affirmative covenant creates new legal duties on both parties, a covenant of further assurance only creates new legal obligations on one side of the contract — usually the seller.
Covenants are legally binding agreements which can be enforced by law. In New York, covenants are often embedded within contracts that refer to specific real estate transactions (e.g., sale or rental contracts). When they are included within these types of contracts, they are known as “covenants running with the land.”
A covenant of further assurance is a property contract that can be made between a buyer and seller to ensure that the seller fulfills his or her responsibilities after the sale.
The covenant of further assurance is an agreement between the buyer and seller of real estate that obligates the seller to perform various obligations after the sale has been completed. The covenant of further assurance may include such things as ensuring that any outstanding taxes are paid, or ensuring that any outstanding loans are transferred over to the new owner.
In New York State, there are special requirements for covenants of further assurance. The law requires that they be in writing, signed by both parties, and witnessed by at least two people who are not related to either party.
If you want to learn more about covenants of further assurance or other real estate contracts, contact an experienced New York real estate attorney today!
A covenant of further assurance is a “special covenant” that must be entered into by the buyer and seller in order for the sale of real estate to be valid. A special covenant is one that does not relate to any other property, but rather only to the subject property being sold.
In New York, there are two types of covenants of further assurance: (1) a covenant to pay taxes; and (2) a covenant to insure. These covenants must be included in all contracts for the purchase or sale of real property in New York State.
Covenant To Pay Taxes
Every contract for the sale of real property must include a covenant by both parties that they will pay all taxes assessed upon said premises from the time when the same may be levied until such taxes are paid; provided that if such taxes are payable in installments, then this covenant shall only apply so long as such installments remain unpaid, but if not so payable, then this covenant shall apply until all such taxes shall have been paid.
