Other than leaseholds (e.g. lease between a landlord and tenant), there are three main types of deeds used to convey interests in real property. These deeds are (i) general warranty deeds, (ii) special warranty deeds, and (iii) quitclaim deeds. The most popular type of deed is the general warranty deed because it tends to protect buyers more than special warranty deeds and quitclaim deed. As such, we’ll put our focus on general warranty deeds, or deeds where the seller guarantees that he or she has clear title to the real property in question, and that he or she has the right to convey it to another person.

After we explore general warranty deeds, we’ll discuss the six main covenants (e.g. promises) in a general warranty deed, including the covenant of seisin, covenant against encumbrances, covenant of the right to convey, covenant for quiet enjoyment, covenant of warranty, and the covenant for further assurances. So, the next time you purchase or sell real estate you’ll have a much better idea of how a general warranty deed operates.

Next, we’ll look at general warranty deeds more closely.

Before we jump right into general warranty deeds it’s important to understand the definition of a deed. A deed is a document that transfers legal title from a person (or entity) to another person (or entity). It is very important to understand the difference between a deed and legal title. A deed is the actual paper on which all the terms and conditions are written that transfer legal title. Legal title can simply be defined as a term that constitutes who owns the property. In other words, legal title is a concept and not a tangible object like the piece of paper with a deed. Ok, now that we’ve briefly discussed the differences between a deed and legal title let’s take a closer look at 1 of the 3 main types of deeds – the general warranty deed.

General warranty deeds are deeds whereby the seller guarantees that he or she has clear title to the real property in question, and that he or she has the right to sell that property to another person. When a person guarantees that he or she has clear title to a piece of property, that person is guaranteeing that the title to the property is free and clear of any encumbrances, such as mortgages or liens (i.e. things that "cloud" legal title and make it more difficult to transfer). Furthermore, when a seller chooses to covey his or her property via a general warranty deed, the seller is guaranteeing clear title that dates back to the origin of the property (or for a certain statutory period of time like 60 years), so it extends to the acts of all of his or her predecessors.

So, how do general warranty deeds compare to special warranty deeds and quitclaim deeds? Well, both special warranty deeds and quitclaim deeds provide less protection to buyers of real property than general warranty deeds. Special warranty deeds only provide assurances as to the current seller of the property, not to any of the property’s previous owners. Special warranty deeds only assure a buyer of property that the property is free from any encumbrances made by the current seller, and that the seller has not conveyed an interest in the property to any other individual other than that specific buyer.

Quitclaim deeds provide even less protection to buyers than special warranty deeds. A quitclaim deed is a deed whereby the seller coveys the interest that he may or may not have in the real property. With a quitclaim deed, there is no assurance that the grantor actually has any particular title or interest in that specific property! For these reasons, it is best to purchase property that is conveyed via a general warranty deed.

Next, we’ll look at the present covenants for title in general warranty deeds.

As previously mentioned, there are six covenants for title that are guaranteed through general warranty deeds. A covenant can be defined as a promise or guarantee. Those covenants can be broken down into present covenants, meaning the assurances that are guaranteed upon purchase, and future covenants, or the covenants guaranteed through the life of your ownership. The three present covenants for title are the (i) covenant of seisin, the (ii) covenant against encumbrances, and the (iii) covenant of the right to covey.

1. Covenant of Seisin: The covenant of seisin is a covenant where the seller warrants that he or she has the interest in the property that he or she is purporting to convey to a buyer. "Seisin", a word that is derived from the Middle Ages, essentially meant possession of an estate in land that was worthy to be held by a free man. In modern times, it means that the person who sells the property has both title to the property and possession of the property at the time of the conveyance. As the seller or grantor, you own the interest that you claim to own, and you have possession such that you have the right to convey it at this present time.

2. Covenant Against Encumbrances: A covenant against encumbrances is a covenant where the seller assures the buyer that there are no encumbrances on the physical property itself, or in the title to the property. An encumbrance is something that limits or affects a piece of real property. For example, a mortgage or a lien would be an encumbrance on the title to the property. An easement, or a non-possessory interest in land that gives someone the right to use the land, would also be an encumbrance. As the seller or grantor, you warrant under this covenant that there are no such encumbrances to the title or the property itself.

3. Covenant of the Right to Convey: A covenant of the right to convey is a covenant where the seller assures the buyer that he or she has the authority to convey the interest in land that he or she is transferring. This is a basic and straightforward covenant that is satisfied by holding title to the property, and holding title that reflects the interest that one is contending to grant to a buyer.

Next, let’s explore the future covenants guaranteed in general warranty deeds.

In addition to the three present covenants for title there are three future covenants for title that are guaranteed through general warranty deeds. These covenants are assurances which exist after one chooses to and does a purchase the property. The three future covenants are the (i) covenant for quiet enjoyment, the (ii) covenant of warranty, and the (iii) covenant for further assurances.

1. Covenant for Quiet Enjoyment: A covenant for quiet enjoyment is a covenant where the seller assures the buyer that the buyer will not be disturbed in his or her possession of the property by a third party’s lawful claim of title. This is an assurance that extends to possession of the property, not to title to the property. The covenant for quiet enjoyment is breached by a disturbance in the buyer’s possession of the property after he or she makes the purchase. A disturbance in possession of the property could be an entry on the property, or lawful removal of the buyer from the property, such that the covenant would be broken.

2. Covenant of Warranty: A covenant of warranty is a covenant where the seller assures the buyer that he or she will defend against reasonable claims of lawful title made by third parties. Furthermore, the seller assures that he or she will compensate the buyer for any loss that the buyer sustains by such a claim. In reality, the covenant of warranty is essentially the same as a covenant for quiet enjoyment.

3. Covenant for Further Assurances: A covenant for further assurances is a covenant where the seller assures the buyer that he or she will perform any acts that may be reasonably necessary to perfect title to the interest in land that was conveyed. This could mean that the seller would execute any other necessary legal documents to ensure that issues with title were remedied. This covenant is not used widely in all states, such as Ohio.

Finally, we’ll wrap this article up by going over a few key points.

In this article, we explored the three main types of deeds that are used to convey interests in real property: (i) general warranty deeds, (ii) special warranty deeds, and (iii) quitclaim deeds. Here, we focused on general warranty deeds, or deeds whereby the seller guarantees that he or she has clear title to the real property in question, and that he or she has the right to convey it to another person.

Further, we discussed the six main covenants (i.e. promises) in general warranty deeds, including the present covenants of the (i) covenant of seisin, (ii) covenant against encumbrances, and (iii) covenant of the right to convey, and the future covenants including the (iv) covenant for quiet enjoyment, (v) covenant of warranty, and (vi) the covenant for further assurances.

If you are looking to purchase a piece of real estate, it is important to understand the instruments that are being used by sellers to convey the interests in property. It is important to understand the protection, or lack thereof, that is provided by these instruments, in order to ensure that you are getting the best deal possible when in the market to make a purchase.

Your real estate agent will invariably recommend you to hire a title search company to check for any problems with legal title to the property you want to purchase. In other words, you should always perform a title search of the property to see if any encumbrances exist on the property. Otherwise, you, as the buyer, could face some legal challenges on validity of the legal title that you purchased.