What is an implied covenant?

An implied covenant is a legal concept used in property law in Texas. It is a set of rights and obligations that are assumed to exist between two parties, even though they are not formally expressed in an agreement or deed. The implied covenant applies to land transactions and is used to protect the rights of the buyer and seller. In Texas, courts recognize two types of implied covenants: an implied warranty of good title and an implied covenant of quiet enjoyment. An implied warranty of good title is a legal claim that the seller of property has the legal right to sell the property and the buyer has the legal right to possess it. An implied covenant of quiet enjoyment is an agreement that the buyer of a property will not be disturbed by another’s claim of right to the property or interference with the buyer’s use of it. The courts in Texas expect that at the time of sale, there must have been some form of agreement between the buyer and the seller regarding the rights and obligations associated with the transaction. Without evidence of a written agreement, a court may deem an implied covenant to exist between the two parties. It is important to note that an implied covenant is not the same as an express covenant, which is a formal, written agreement that is made between parties to a transaction.

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