In a transaction context, the purchaser shall be aware of contracting with the subject who has a free and clear title to dispose of the property. On the contrary, the purchaser might be subject to eviction procedure: the abduction of the property through a judicial pronouncement.
Under these circumstances, art 1476 Civil Code states that warranty of free and clear title is one of the most relevant vendor obligation. It is a guarantee obligation through which the vendor does take a risk.
The guarantee obligation will operate only in presence of a third subject claiming a right over the good. Moreover, free and clear title warranty also operates in the context of donation contract; even though its application looks more limited.
According to art. 1483 Civil Code, total eviction occurs when the purchaser loses the ownership of the asset. In the event of total eviction, the purchaser has right to:
– Compensation for damages;
– Receive back the value of the property;
– Judicial expenditures.
According to art. 1484 Civil Code partial eviction occurs when the purchaser partially loses the ownership of the property. In this last case, the purchaser has right to:
– Termination of the contract;
– Price reduction.