A warranty deed is a type of

deed In common law, a deed is any legal instrument in writing which passes, affirms or confirms an interest, right, or property and that is signed, attested, delivered, and in some jurisdictions, sealed. It is commonly associated with transferring ...

where the

grantor A grant, in law, is a transfer of property, generally from a person or other entity giving the property (the grantor) to a person or entity receiving the property (the grantee). Historically, a grant was a transfer by deed of that which could not ...

(seller) guarantees that they hold

clear title Clear title is the phrase used to state that the owner of real property owns it free and clear of encumbrances. In a more limited sense, it is used to state that, although the owner does not own clear title, it is nevertheless within the power o ...

to a piece of

real estate Real estate is property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, (more general ...

and has a right to sell it to the

grantee A grant, in law, is a transfer of property, generally from a person or other entity giving the property (the grantor) to a person or entity receiving the property (the grantee). Historically, a grant was a transfer by deed of that which could not ...

(buyer), in contrast to a

quitclaim deed Generally, a quitclaim is a formal renunciation of a legal claim against some other person, or of a right to land. A person who quitclaims renounces or relinquishes a claim to some legal right, or transfers a legal interest in land. Originally a c ...

, where the seller does not guarantee that they hold title to a piece of real estate. A ''general'' warranty deed protects the grantee against title defects arising at any point in time, extending back to the property's origins. A ''special'' warranty deed protects the grantee only against title defects arising from the actions or omissions of the grantor.

Covenants for title

A warranty deed can include six traditional forms of covenants for title, sometimes known as the English covenants of title. Those six traditional forms of covenants can be broken down into two categories: ''present covenants'' and ''future covenants''. *Present covenants **''Covenant of

seisin Seisin (or seizin) denotes the legal possession of a feudal fiefdom or fee, that is to say an estate in land. It was used in the form of "the son and heir of X has obtained seisin of his inheritance", and thus is effectively a term concerned with co ...

'': "A covenant of seisin or good right to convey." **''Covenant of right to convey'': Covenants that represent the seller's promise that they have a valid title of the property being conveyed and have not contracted to sell it to another. **''Covenant against

encumbrances An encumbrance is a third party's right to, interest in, or legal liability on property that does not prohibit the property's owner from transferring title (but may diminish its value). Encumbrances can be classified in several ways. They may be f ...

'': Seller promises that there are no encumbrances, other than those that have been previously disclosed. *Future covenants **''Covenant of quiet enjoyment'': "The covenant of warranty is an assurance or guarantee of title, or an agreement or assurance by the grantor of an estate that the grantee and their heirs and assigns will enjoy it without interruption by virtue of a paramount title and that they will not, by force of a paramount title, be

evicted Eviction is the removal of a tenant from rental property by the landlord. In some jurisdictions it may also involve the removal of persons from premises that were foreclosed by a mortgagee (often, the prior owners who defaulted on a mortgag ...

from the land or deprived of its possession. . . ." **''Covenant of warranty'': Covenants that represent seller's promise to protect the buyer against anyone who comes along later and claims paramount title to the property. **''Covenant of further assurances'': The covenant of further assurances requires the seller to take affirmative steps to cure any defects in the grantor's title. Most buyers perform a

title search In real estate business and law, a title search or property title search is the process of examining public records and retrieving documents on the history of a piece of real property to determine and confirm property's legal ownership, and find o ...

to determine if there are defects in title that must be resolved before they purchase real property. A title search provides constructive notice of any encumbrances,

easement An easement is a nonpossessory right to use and/or enter onto the real property of another without possessing it. It is "best typified in the right of way which one landowner, A, may enjoy over the land of another, B". An easement is a propert ...

s, or restrictions on the property being conveyed, and is generally considered part of a buyer's

due diligence Due diligence is the investigation or exercise of care that a reasonable business or person is normally expected to take before entering into an agreement or contract with another party or an act with a certain standard of care. It can be a l ...

in the process of purchasing real estate. Buyers can also purchase

title insurance Title insurance is a form of indemnity insurance predominantly found in the United States and Canada which insures against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage loans. Unlike ...

to protect against title defects. A warranty deed is not a substitute for title insurance because, if the grantor later dies or goes

bankrupt Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debt ...

, the grantee may not be able to exercise the warranty.Ferara LN, Philips J, Runnicles J. (2007)
Some Differences in Law and Practice Between U.K. and U.S. Stock Purchase Agreements
''Jones Day Publications''.

References

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External links

Example warranty deed
Real property law