Security Trust and Savings Bank v. Reed

In the absence of fraud or mistake defenses of this nature are wholly dependent upon the covenants contained in the deed of conveyance. When the deed from complainant to defendant contains a covenant against encumbrances the mortgagor will be entitled to a deduction for prior encumbrances. This is because in such circumstances that covenant may be deemed already broken when made and this court may appropriately determine an issue of that nature. When the deed contains a covenant of title this court will not undertake to adjudicate an issue of title to determine whether the covenant has been…