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warranty deedA deed containing promises by the seller regarding the quantity and quality of title being transferred to the buyer and some of the responsibilities of the seller if the warranties are breached. A special warranty deed gives assurances that the seller has not done anything to diminish the title but makes no promises about things that happened before the seller took title or things that are outside the seller's control. A general warranty deed gives the most protection to a buyer,and includes both present and future covenants as follows:
• Present covenants:
• Seisin, meaning the seller (grantor) has legal title
• Right to convey, meaning there are no restrictions on the right to convey
• Against encumbrances, meaning there are no other claims such as liens, easements, or other similar matters
• Future covenants:
• Covenant of warranty, being a promise to indemnify the grantee for any damage suffered as a result of the title being defective. Some courts require an actual dispossession of the grantee before the covenant comes into play, and others do not. Some allow the attorneys' fees paid by the grantee as an element of damage, and others do not.
• Quiet enjoyment, that grantee will be able to enjoy the estate without adverse claims from other parties.
• Further assurances, that grantor will take any steps necessary in the future to defend the title or perfect grantee's title if there is a technical defect and a corrective deed required, for example.