Deeds

• A deed is a legal document by which a property seller conveys property to a buyer. A property deed describes the property being transferred, and identifies the seller and buyer of the property. It states in writing that the seller intends to convey the property to the buyer. A seller must also legally deliver the deed to the buyer before the deed takes effect.
  
  

Present Covenants

• A warranty deed contains three "present covenants," which are promises about conditions at the time of the deed transfer. These are the covenant of seisin, avowing that the seller owns the property; the right to convey, meaning that no other interest prevents the seller from transferring his interest; and the covenant against encumbrances, meaning that the property is not encumbered in any way--for instance, by a lien or mortgage--not described in the deed.
  
  

Future Covenants

• A warranty deed contains three "future covenants," promising seller action in the event that someone interferes with the buyer's possession of the property after the deed transfer. These are the covenant of quiet enjoyment, promising that the buyer's possession will not be disturbed; the covenant of general warranty, in which the seller promises to defend the buyer against any claims of title by third parties; and the covenant of further assurances, which demands that the seller perform any further acts needed to fix problems with the title. These warranties sometimes overlap in practice.
  
  

Breach of Covenants

• The promises made by a seller in a warranty deed are legally enforceable. The buyer's legal remedy for breach of deed covenants depends on which of the covenants are breached. Breach of most of the covenants can be redressed by money damages comprising the difference in cost between the actual value of the property and the value the buyer thought he was getting. However, if the buyer discovers an encumbrance on the property--creating a breach of the covenant against encumbrances--and that encumbrance is easily removed, some courts will demand only that the seller pay the cost of removing the encumbrance.
  
  

Special Warranty Deed

• A warranty deed should not be confused with a special warranty deed, also known as a grant deed. Grant deeds operate by statute in some jurisdictions, and typically contain only the three present covenants. A grant deed protects the buyer only against the seller's actions, not those of any owners before the seller.