Legal Definitions - full-covenant-and-warranty deed

A full-covenant-and-warranty deed is a legal document used to transfer ownership of real estate that offers the highest level of protection to the buyer (also known as the grantee). When a seller (the grantor) provides this type of deed, they make several strong, legally binding promises, called covenants and warranties, to the buyer.

These promises guarantee that:

• The seller genuinely owns the property and has the legal right to sell it.
• The property is free from any undisclosed liens, mortgages, easements, or other claims that could affect its value or the buyer's use.
• The buyer's ownership will not be challenged or disturbed by anyone with a superior legal claim to the property.
• The seller will take any necessary steps to fix any title defects that may arise.
• The seller will defend the buyer's title against all lawful claims, even those that originated long before the seller owned the property.

Essentially, this deed holds the seller responsible for any title defects, regardless of when they originated, providing the buyer with the most comprehensive assurance of clear ownership.

• Example 1: Purchasing a Family Home

  Imagine Sarah and Tom are buying their first home. The seller provides them with a full-covenant-and-warranty deed. Five years later, they discover an old, forgotten utility easement across their backyard that was never disclosed and prevents them from building a planned deck. Because they received a full-covenant-and-warranty deed, the original seller is legally obligated to help resolve this issue, potentially by compensating Sarah and Tom or by working to have the easement removed, even though the easement predated the seller's ownership.

• Example 2: Commercial Property Acquisition

  A company, "Tech Innovations Inc.," purchases a large office building for its new headquarters. The previous owner transfers the property using a full-covenant-and-warranty deed. A year after the purchase, a neighboring business claims a right-of-way across Tech Innovations' parking lot, citing an unrecorded agreement from 30 years ago. With the full-covenant-and-warranty deed, Tech Innovations Inc. can hold the seller responsible for defending against this claim and ensuring their clear, unencumbered use of the parking lot, as the deed guaranteed the title was free from such undisclosed encumbrances.

• Example 3: Buying Undeveloped Land

  David buys a large tract of undeveloped land with the intention of building a cabin. The seller provides a full-covenant-and-warranty deed. Later, a surveyor discovers that a small portion of the land David purchased is actually owned by an adjacent landowner due to an error in a very old property survey. Because David received a full-covenant-and-warranty deed, the seller is responsible for resolving this boundary dispute, either by negotiating with the neighbor, compensating David for the lost land, or taking other steps to ensure David receives the full acreage promised in the deed.