Acme Land Company sold a lakefront lot to Sarah Farris. The date of the sale was July 30, 2019. Acme transferred the lot to Sarah by a limited warranty deed. The deed warranted that the property was free of liens and encumbrances. Acme had owned the lot since March 10, 2014. After the sale, when Sarah was seeking a mortgage loan to build a home on the lot, Sarah discovered that the lot was encumbered by an easement for general public access to the lake. The easement was created in April 2010 by a previous owner of the lot. The easement reduced the size of the lot for building purposes and reduced its value. Can Sarah sue Acme for breach of a deed warranty?

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The Answer of Acme Land Company sold a lakefront lot to Sarah Farris. The date of the sale was July 30, 2019. Acme transferred the lot to Sarah by a limited warranty deed. The deed warranted that the property was free of liens and encumbrances. Acme had owned the lot since March 10, 2014. After the sale, when Sarah was seeking a mortgage loan to build a home on the lot, Sarah discovered that the lot was encumbered by an easement for general public access to the lake. The easement was created in April 2010 by a previous owner of the lot. The easement reduced the size of the lot for building purposes and reduced its value. Can Sarah sue Acme for breach of a deed warranty?

Acme Land Company Sold a Lakefront Lot to Sarah Farris