Covenants are sometimes implied in the title deed, the nature of which depends on the fact that the seller decides to sell with limited or full title guarantee. On completion, the contract merges with the conveyance thereby disallowing a claim out of the contract after completion process has taken place. The only remedy available to the aggrieved party is tomake a claim for breach of the implied covenants. SC 7.3 and SCPC 9.4 however maintain the aggrieved party’s right to sue on the contract even after completion, provided the claim is raised within the prescribed six year limitation period.
Enforcement of the covenants
Liability of the covenants is strict when the property in question is an unregistered land. The 12 year limitation period usually runs from the date of completion when the covenant relates to the ‘right to dispose of property’. In the case of other covenants, the limitation period usually runs from the date of actual breach. The covenants for title have the same application in case of registered land, except for the fact that the liability is not strict. With registered land, the state guarantee entails that claims for covenants are less likely to occur.
Photo: Ollie Harding
