The real estate interest may be full title, but the grantor does not guarantee it. The quitclaim deed carries no warranties at all - it only conveys the interest that the grantor had in the property, whatever that may be. Generally, the bargain and sale deed are conveyed with the words that grantor grants and releases or grants, bargains, and sales. Since the grantor, usually a bank or tax authority, did not occupy the land, it would not necessarily know of any encumbrances that may have been attached to the land by the previous owner, and, thus, the grantor does not want to guarantee against any encumbrances. The bargain and sale deed is most often the deed that is transferred from a foreclosure or tax sale- hence, the name.
#COVENANT OF SEISIN EXAMPLE FREE#
The bargain and sale deed has no guarantee that the land being sold is free of encumbrances - the only implication is that the grantor has title, and not one that is necessarily free of defects.
Often, the special warranty deed is issued when the real estate is sold in a tax sale. Special warranty deeds are frequently used by temporary holders of real estate, such as trusts, or other fiduciaries, or corporations, who do not use or occupy the land for their own benefit. There is no guarantee against title defects or encumbrances that may have been present when the grantor received the property, nor does it obligate the grantor to do anything further once the title is transferred. The special warranty deed is usually conveyed with the phrase Grantor remises, releases, alienates, and conveys. Special Warranty DeedĪ special warranty deed guarantees less than the general warranty deed: that the grantor received title, and that there were no encumbrances other than what is listed in the deed while the grantor held title. If, later, it is discovered that there was an encumbrance when title was transferred that was not listed in the deed, then the grantor is liable for the amount to have the encumbrance removed. The covenant against encumbrances is the only warranty that does not cover the title in some way, but guarantees that the only encumbrances to the land, such as mortgages, mechanics' liens, or easements, are those that are listed in the deed. Thus, if the grantor's spouse had dower or curtesy rights to the real estate, but did not sign the deed, then the grantor may obtain a quitclaim deed to clear the title. If the title defect is something that the grantor may cure, then the covenant of further assurance requires that the grantor do whatever is necessary to clear the title. In fact, the covenant of warranty forever is the guarantee that the title will always be good, and that the grantor will compensate the grantee if it is later found that the title is defective. If someone succeeds in establishing a superior claim, then the grantor will be liable to the grantee for the damage. The following warranties can be construed as being corollaries of the covenant of seisin.Ĭovenant of quiet enjoyment: the grantor guarantees that the title is superior to any other claims by 3 rd parties. If the title proves to be defective, the grantee can sue for damages.
Most of these warranties cover the warranty of good title and encumbrances: Warranty of TitleĬovenant of seisin: the grantor warrants the title that is being conveyed to the grantee. State laws differ in how the general warranty deed is created, but, usually, there are specific words that make a deed a general warranty deed, most notably, convey and warrant and warrant generally.
The general warranty deed provides the greatest conveyance and protection to the grantee because it includes warranties or covenants that the seller conveys with the title. A deed to release simply releases property when the loan for which the property served as security is paid. A correction deed corrects an error on a previous deed. There are also some special deeds that serve a particular purpose.
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