Essay Flashcards

A, the registered owner of Lot 420, sells the lot to B by Deed of Sale. At closing, B signs a separate instrument labeled Waiver of Title Defects, providing: “I waive any claim against A for defects in the title or for reconveyance arising from title defects, except for fraud.” After transfer and recording, a previously undisclosed mortgage lien on Lot 420 is discovered, threatening B’s title. (a) Is B’s waiver valid to bar B’s action for reconveyance or damages? Identify the controlling doctrine on waiver and apply it to the facts, including the requirements of a valid waiver and any fraud-related exceptions. (b) If C later buys Lot 420 from B in good faith and without notice of the waiver or the lien, is C bound by B’s waiver? Explain with respect to the third-party effect of waivers in land-title transactions.