Different deeds have
certain protections for the buyer and certain protection for the seller. Warranty Deeds are the most comprehensive of the options. These are a few of the main deeds you will see.
- Warranty Deed
- Special Warranty Deed
- Quit Claim Deed
- Bargain and Sale Deed
- Tax Deed
- Grant Deed
Warranty Deeds and Special Warranty Deeds have 6 covenants against encumbrances. The seller is guaranteeing that there are no easements or anything hidden in the property and that the title is clear.
There are 6 Covenants of Title. Sometimes known as English Covenants of Title. The first three represent the present and the last three represent the future.
Present Covenants
- Covenant of Seisin: That the Seller owns the Title
- Covenant of Right to Convey: That the seller is legally allowed to sell the property
- Covenant Against Encumbrances: That the property has not already been sold
Future Covenants
- Covenant of Quiet Enjoyment: That the property can be enjoyed without interruption by virtue of a paramount title and that they will not, by force of a paramount title, be evicted from the land or deprived of its possession.
- Covenant of Warranty: Represents the 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.
The General Warranty Deed guarantees these 6 covenants now and forever. Where the Special Warranty Deed is very similar (With one big exception). It only covenants against lawful claims that arise "under, by or through" the grantor. Meaning only those claims arising through the act of the grantor himself, but no acts of others. For instance if you are the grantor and you cause the problem then you must fix it. But if the previous owner caused the problem then you are safe and protected.
for further reading
https://en.wikipedia.org/wiki/Warranty_deed
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