Also known as:title covenant · covenants of title · covenant of title · covenants for title
Written by attorneys — see sources below.
Contractual assurances contained in a deed by which the grantor warrants the quality of title conveyed to the grantee. These assurances typically include covenants of seisin, right to convey, against encumbrances, quiet enjoyment, and warranty.
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Common Examples
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General Warranty Deed Breach Claim
Tiffany Torres conveyed a historic inn to Twin Rivers Bank by general warranty deed at closing. After the bank took possession, a third party asserted a prior recorded option to purchase the property and sued to enforce it. The bank tendered defense to Torres, who refused on the ground that she had mentioned the option informally during negotiations. The covenants in the deed obligated Torres to defend title against the prior claim and to compensate the bank for any resulting loss.
Special Warranty Deed Limitation
Travis Tate conveyed a soccer complex to Tidal Energy by special warranty deed. Local leagues later asserted long-standing use rights that originated during Tate's ownership and refused to vacate. Tidal Energy sued Tate for breach of the quiet enjoyment covenant. Recovery turned on whether the interfering claims arose by, through, or under Tate, the precise limit of the special warranty covenants.
On August 31, 1927, Dusch leased to Hannan certain real estate in the city of Norfolk, Virginia, for fifteen years, the term to begin January 1, 1928, at a specified rental. There is no express covenant as to the delivery of the premises nor for the quiet possession of the premises by the lessee.
The declaration alleges that it thereupon became the duty of the defendant to see to it that the premises leased should be open for entry by the plaintiff on January 1, 1928. The petitioner was willing and ready to enter upon and take possession of the leased property and so informed the defendant. Yet the defendant failed and refused to put the plaintiff in possession or to keep the property open for him at that time or on any subsequent date. The defendant suffered to remain on said property a former tenant or tenants who occupied a portion or portions thereof and refused to take legal or other action to oust said tenants. Hannan alleged damages which he had suffered by reason of this alleged breach of the contract and deed and sought to recover such damages in the action.
Dusch demurred to the declaration on several grounds. One ground was that under the lease set out in said declaration the right of possession was vested in said plaintiff. There was no duty as upon the defendant to see that the premises were open for entry by said plaintiff.
What covenants does a general warranty deed contain?
A general warranty deed contains covenants of seisin, right to convey, against encumbrances, quiet enjoyment, warranty, and sometimes further assurance. These promises assure the grantee of good title and protection from prior defects.
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How does a special warranty deed differ from a general warranty deed?
A special warranty deed warrants title only against claims arising by, through, or under the grantor. A general warranty deed covers all defects in the chain of title regardless of when they arose.
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Do title covenants run with the land?
Title covenants in a general or special warranty deed run with the land. Remote grantees may therefore enforce them against the original grantor when a title defect later surfaces.
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Does constructive notice of a recorded encumbrance defeat a claim for breach of the covenant against encumbrances?
No. A general warranty deed provides an absolute assurance against encumbrances. Constructive notice from the recording system does not nullify the grantor's liability under the covenant.
Supporting sources
153 S.E. 824 (Va. 1930)
…uniform, we understand the law upon the subject to be perfectly well settled. Taylor on Landlord and Tenant, 147; Rawle on Covenants for Title, 147. The lessor is responsible upon the covenant for his own acts, and for the acts of others claiming by title paramount to the lease, but he is not responsible for the acts of a mere…
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