Where the disposition is of leasehold land and is expressed to be made with full title guarantee or with limited title guarantee, the following covenants shall also be implied—
that the lease is subsisting at the time of the disposition, and
that there is no subsisting breach of a condition or tenant's obligation, and nothing which at that time would render the lease liable to forfeiture.
If the disposition is the grant of an underlease, the references to "the lease" in subsection (1) are references to the lease out of which the underlease is created.