A covenant of further assurance is a promise by one party to another that they will not do something in the future. It can be used as a defense to breach of contract claims. In New York, covenants of further assurance are generally enforceable if they are in writing and signed by the party who gave them. To learn more about a covenant of further assurance, contact MacGregor Abstract.
A covenant of further assurance can be either affirmative or negative in nature:
Affirmative Covenants: These are promises that something will happen in the future. For example, “I will not sell my company within five years.”
Negative Covenants: These are promises that something will not happen in the future. For example, “I will not enter into any contracts with any other companies.”
A covenant of further assurance is a contract between a landlord and tenant that extends the terms of their original lease. It adds covenants that are additional to the ones already in place, such as a provision that limits rent increases to certain percentages.
For example, if you have a two-year lease that ends on January 1st and you want to renew for another two years, you and your landlord can enter into a covenant of further assurance (COFA) to extend your agreement for another two years.
The COFA must be signed by both parties before it takes effect. This document is not required by law in New York, but many landlords require it as part of their lease agreements.
A covenant of further assurance is an agreement between a landlord and tenant to protect the tenant from being evicted for breach of lease. It is also known as a “covenant for quiet enjoyment” or a “covenant against eviction.”
What Does a Covenant of Further Assurance Do?
A covenant of further assurance specifically states that if the tenant violates the terms of their lease, the landlord cannot evict them without first going through an additional legal process. This process could involve filing an eviction lawsuit in court, but it would also give the tenant time to fix any violation before an eviction could occur. The exact details of this process vary by state, but they typically involve giving the tenant notice that they violated their lease and allowing them at least two months to fix the violation before filing an eviction lawsuit.
A covenant of further assurance is a contract between a homeowner and an insurance company that allows the homeowner to obtain future coverage of storm damage. The homeowner buys this coverage through his or her insurance company, but it is not part of any standard policy.
Covenants of further assurance are used when homeowners believe they will be able to secure financing for repairs within one year. Often, this is because they plan on selling their homes soon after the damage occurs. In order to get a mortgage, however, lenders usually require proof that a home has been repaired to its pre-storm condition.
If you sign an agreement like this before your house suffers storm damage, it can help ensure that you’ll have enough money available to make repairs quickly.