The covenant against encumbrances is an assurance that the seller owns the land “outright,” not subject to liens, taxes easements, mortgages, or any other restrictions that might affect a buyer’s right to use or enjoy the property. The covenant of the right to convey is an assurance that the seller has the right to transfer their ownership interest. The covenant of seisin is a legally binding assurance that the seller owns the property they claim to own, and that the seller also has the right to possess and occupy that property. The three present covenants are the covenant of seisin, the covenant of the right to convey, and the covenant of no encumbrances. Future covenants, by contrast, may be enforced against any previous seller of the land. A present covenant may only be enforced against the current seller, and not against previous sellers of the land. A present covenant is one that can be enforced against the seller as soon as ownership of the land is transferred. Three of these covenants are present covenants, while the other three are future covenants. A special warranty deed, by contrast, only warrants against title defects that were created when the buyer held title to the land.Ī general warranty deed contains a total of six covenants for title. If a defect in title is found by a buyer, and that defect was created before the buyer owned the property, the buyer is required to make efforts to correct the title. A general warranty deed covers the entire ownership history of the property. An example of a covenant is the “covenant of the right to convey.” Through this covenant, the seller promises that they have the right to convey the property to another person. If a covenant is breached, the seller must compensate the buyer.
Covenants are promises that the property contains no defects in title.Ī defect in title may include an improperly recorded title, an inaccurate deed description, a lien, an encumbrance, a mortgage, a judgment, another claim to the property, or anything else that prevents a would-be buyer from being able to own the property without the property being subjected to claims of another. This deed also contains six covenants, or promises. A general warranty deed is a guarantee that the person selling the property both owns that property and has the legal right to sell it. The two types of warranty deeds are special warranty deeds and general warranty deeds. If a buyer, after purchasing the property, discovers that the property was already sold to someone else, the buyer can sue the seller for damages to compensate the buyer.Ī warranty deed provides still further protection to a buyer. A grant deed is used to transfer ownership, and contains a promise that the property being sold, has not already been transferred to someone else. A grant deed provides buyers with greater protection than a quitclaim deed. Quitclaim deeds are viewed by the law as “AS IS ” documents that is, a buyer is deemed to accept whatever ownership rights the seller actually had, as opposed to claiming inaccurately to have had.īuyers often seek greater protection than what a quitclaim deed provides. A buyer who relies on inaccurate representations in a quitclaim deed, may not sue the seller for having made inaccurate promises. Quitclaim deeds only transfer actual rights, not rights someone claims to have but does not.įor example, a quitclaim deed may state, “I, the seller, transfer my ownership of the Golden Gate Bridge to buyer X.” The seller does not have any ownership interest in the Golden Gate Bridge. A quitclaim deed transfers whatever rights someone actually has on property, to the other person to the real estate transaction. The simplest deed is referred to as a quitclaim deed.
A deed is a document that legally transfers real estate property rights.
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