Covenant Deeds Vs. Warranty Deeds

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When purchasing a piece of real estate, it is important to look at the type of deed that you are getting with the property. The type of deed tells you a lot about what types of assurances you will have has a landowner. Both the covenant deed and the warranty deed provide specific types of information and coverages for real estate buyers.


The purpose of both of these types of deeds is to transfer ownership rights to a new owner. When you sell a piece of property, you will have to give the deed to the property to the buyer. The buyer will take the deed and his name will be added to it. This is how the ownership of real property is conveyed to another individual. This is typically done with the help of a title company.

Warranty Deed

The warranty deed is a certain type of deed that can be conveyed to a buyer with certain assurances. The warranty deed will have information like the legal description of the property and the names of the previous owners. The warranty deed provides assurances that the owner of the property has the right to convey it to another party. The warranty deed provides the buyer with assurance because the seller of the property promises to stand behind any claims against the property.

Covenant Deed

The covenant deed is a type of deed that also provides some level of assurance for a buyer of real estate. This type of deed is also referred to as a special warranty deed. Instead of guaranteeing against any type of claim on a piece of property, the seller of a property only guarantees that there were no issues with the property while she owned it. This type of deed does not provide any protection against claims from previous owners.

Title Company

When the sale of real estate takes place, a title company will generally be hired to run a title search on the property. The title search will look at all of the previous owners of the property and determine if there are any claims against it. The title company will then provide an abstract of title to the buyer and the seller. If there are no encumbrances or other issues with the property, the title company can issue title insurance to the buyer. This provides protection against any claims in the future.

Legal Action

If the buyer of a piece of property has a covenant deed or a warranty deed and an issue with the property comes up, he could potentially take legal action against the seller of the property. If you are dealing with a warranty deed, any claims on the property could allow you to file suit against the previous owner. If you have a covenant deed, only issues from the time that the previous owner owned the property could be included in a lawsuit.

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