What is a General Warranty Deed?
A General Warranty Deed is a type of deed in real estate where the grantor (seller) guarantees that they hold clear title to a piece of real property and have the right to sell it. This deed protects the grantee (buyer) by ensuring that the title is free from any defects, and the grantor must defend the title against any potential claims. It is the deed that offers the most comprehensive protection for the grantee, as it covers the entire history of the property’s title.
Unlike other types of deeds (such as Quitclaim Deeds or Special Warranty Deeds), a General Warranty Deed includes several warranties or covenants that span the entire history of the property’s title. These covenants include:
- Covenant of Seisin: The grantor assures they have the legal right to possess and convey the property.
- Covenant Against Encumbrances: The property is free of liens or encumbrances unless expressly stated in the deed.
- Covenant of Quiet Enjoyment: The grantee’s right to possess the property will not be disturbed by any third-party claiming superior title.
- Covenant of Warranty Forever: The grantor promises to defend the title against future claims forever.
- Covenant of Further Assurances: The grantor will take further action necessary to correct any title defects.
Example Scenarios
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Buying Homes: When purchasing a home, buyers often prefer General Warranty Deeds because they provide the highest assurance that the property is free from title defects and the grantor will defend any title disputes.
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Inheritance of Property: If a property inherited by an individual has a General Warranty Deed, the inheritor would be protected against claims from previous owners or their descendants.
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Claims Resolution: If a new owner finds a title defect like an undisclosed easement, they can seek restitution from the grantor because the General Warranty Deed covers any and all defects.
Frequently Asked Questions
What is the difference between a General Warranty Deed and a Special Warranty Deed?
A General Warranty Deed guarantees the title’s entire history, while a Special Warranty Deed only covers the period during which the grantor owned the property.
Can a General Warranty Deed cover disputes arising after the sale?
Yes, the Covenant of Warranty Forever means the grantor must defend the grantee against future claims and compensate for any losses because of a defective title.
What if there are title defects discovered after several years?
The grantor is still responsible for any title defects discovered later as per the Covenant of Seisin and Covenant of Warranty Forever in a General Warranty Deed.
- Quitclaim Deed: A deed that transfers any interest the grantor has in the property without any title guarantees.
- Special Warranty Deed: A deed where the grantor guarantees the title only against defects that arose during their ownership.
- Title Insurance: Insurance protecting against losses due to title defects that were undiscovered at the time of sale.
- Encumbrance: A claim or lien on a property, such as a mortgage or easement, which decreases its value.
- Title Search: An examination of public records to confirm a property’s legal ownership and find any title defects.
Online Resources
References
- “The Language of Real Estate” by John W. Reilly.
- “The Complete Guide to Real Estate Contracts” by Mark Warda.
- “Real Estate Law” by Robert A. Goode and Bartlett Wilmot.
Suggested Books for Further Study
- “Real Estate Investing for Dummies” by Eric Tyson and Robert S. Griswold
- “Modern Real Estate Practice” by Fillmore W. Galaty, Wellington J. Allaway, and Robert C. Kyle
- “The Book on Managing Rental Properties” by Brandon Turner and Heather Turner
Real Estate Basics: General Warranty Deed Fundamentals Quiz
### What protection does a General Warranty Deed provide to the grantee?
- [x] Protection against all present and past title claims
- [ ] Protection only during the grantor's ownership
- [ ] No protection, it just signifies transfer of ownership
- [ ] Protection from property tax issues alone
> **Explanation:** A General Warranty Deed provides the highest level of protection to the grantee by guaranteeing against any title claims arising from the property's entire history.
### Which covenant assures the grantee that the grantor owns and has the right to convey the property?
- [x] Covenant of Seisin
- [ ] Covenant Against Encumbrances
- [ ] Covenant of Quiet Enjoyment
- [ ] Covenant of Further Assurances
> **Explanation:** The Covenant of Seisin ensures that the grantor owns the property and has the right to transfer it, providing initial assurance to the grantee.
### Who is responsible for defending against future title claims in a General Warranty Deed?
- [ ] The title insurance company
- [ ] The county recording office
- [x] The grantor
- [ ] The real estate agent
> **Explanation:** The grantor is responsible for defending against future title claims under the Covenant of Warranty Forever included in a General Warranty Deed.
### Which situation could jeopardize the grantee’s quiet enjoyment of the property?
- [x] Previous owner's undisclosed easement
- [ ] New paint job on the neighboring property
- [ ] Different mortgage rates
- [ ] Change in local zoning laws
> **Explanation:** An undisclosed easement could allow someone else use of the property that disturbs the owner's quiet enjoyment, hence violating the Covenant of Quiet Enjoyment.
### When buying a historic property, which deed offers maximum historical title protection?
- [ ] Quitclaim Deed
- [x] General Warranty Deed
- [ ] Special Warranty Deed
- [ ] Grant Deed
> **Explanation:** A General Warranty Deed offers maximum protection since it covers the entire history of the property's title, thus ensuring historical title protection.
### What assurance does the Covenant Against Encumbrances provide?
- [ ] The property has no neighbors
- [ ] The property tax will not increase
- [x] The property is free from unspecified liens and encumbrances
- [ ] The property fence is in good condition
> **Explanation:** The Covenant Against Encumbrances assures that the property is free from any unspecified liens or encumbrances, providing clear title.
### Can a General Warranty Deed be challenged in court?
- [x] Yes, if any title covenants are breached
- [ ] No, deeds cannot be challenged legally
- [ ] Only if the grantee does not want the property
- [ ] Yes, but only within the first year of transfer
> **Explanation:** A General Warranty Deed can be challenged in court if any of the title covenants provide false assurances or are otherwise breached.
### What is the main appeal of a General Warranty Deed for property buyers?
- [x] Comprehensive title protection
- [ ] Attractive property landscaping
- [ ] Thoughtful house interiors
- [ ] Proximity to schools and markets
> **Explanation:** The main appeal of a General Warranty Deed for buyers is the comprehensive protection they receive from future and past title claims.
### Under which circumstance can the Covenant of Further Assurances be invoked?
- [x] Need for additional documents to clear title defects
- [ ] The deed is misplaced
- [ ] Property needs maintenance
- [ ] Dispute over property boundaries
> **Explanation:** The Covenant of Further Assurances can be invoked if additional documents or actions are needed to clear any title defects unforeseen during the initial transaction.
### If a previous owner presents a title claim five years after the sale, the grantee is:
- [ ] Left without recourse
- [x] Protected by the grantor through the General Warranty Deed
- [ ] Responsible for resolving the claim
- [ ] Able to claim insurance only
> **Explanation:** The grantee is protected by the grantor through the General Warranty Deed, ensuring the grantor defends against this earlier title claim.
