A Warranty Contained in a General Warranty Deed That the Land

question 39

True/False

A warranty contained in a general warranty deed that the land is unencumbered is known as the "covenant of seisin."

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Definitions:

Expense Account

An account used to record the consumption of assets, including costs incurred in the operation of a business, contributing to a reduction in equity.

Merchandise Inventory

Goods a company intends to sell to customers, typically in a retail or wholesale setting.

Replacement Price

The current cost of replacing an asset or inventory with a similar item.

Income-Sharing Ratio

The predetermined formula used among business partners or within an organization to divide profits or losses among stakeholders.