Titles - Types of deeds (including covenants for title)

Learning Outcomes

After reading this article, you will be able to distinguish the main types of deeds used to transfer real property, identify the covenants for title associated with each, and apply these principles to MBE-style questions. You will understand the legal significance of general warranty, special warranty, and quitclaim deeds, and know the remedies available for breach of title covenants.

MBE Syllabus

For MBE, you are required to understand the legal rules governing the transfer of title to real property. This includes the types of deeds, the covenants for title, and the consequences of breach. In your revision, focus on:

• The three main types of deeds: general warranty, special warranty, and quitclaim.
• The present and future covenants for title and their enforceability.
• The remedies available for breach of covenants.
• The effect of estoppel by deed and after-acquired title.
• The distinction between present and future covenants for statute of limitations and remote grantee purposes.

Test Your Knowledge

Attempt these questions before reading this article. If you find some difficult or cannot remember the answers, remember to look more closely at that area during your revision.

1. Which deed provides the broadest protection to a grantee?
   1. Quitclaim deed
   2. Special warranty deed
   3. General warranty deed
   4. Bargain and sale deed
2. Which of the following is a present covenant for title?
   1. Covenant of warranty
   2. Covenant of seisin
   3. Covenant for further assurances
   4. Covenant of quiet enjoyment
3. If a grantor conveys land by quitclaim deed and later acquires title to the land, what interest does the grantee receive?
   1. The grantee automatically receives the after-acquired title
   2. The grantee may sue for breach of covenant
   3. The grantee receives nothing
   4. The grantee may rescind the deed
4. Which covenant is breached only upon actual interference with possession?
   1. Covenant of seisin
   2. Covenant against encumbrances
   3. Covenant of warranty
   4. Covenant of right to convey

Introduction

A deed is the legal instrument used to transfer title to real property. The type of deed used determines the level of protection the grantee receives and the remedies available if title defects arise. Understanding the differences among general warranty, special warranty, and quitclaim deeds—and the covenants for title they may contain—is essential for MBE success.

Types of Deeds

There are three principal types of deeds used in real property transfers:

1. General Warranty Deed
   This deed provides the greatest protection to the grantee. The grantor warrants title against all defects, whether arising before or during the grantor’s ownership.

2. Special Warranty Deed
   The grantor warrants title only against defects arising from the grantor’s own acts or omissions, not those of prior owners.

3. Quitclaim Deed
   The grantor makes no warranties about title. The grantee takes whatever interest the grantor has, if any.

Key Term: General Warranty Deed
A deed in which the grantor warrants title against all defects, including those caused by prior owners.

Key Term: Special Warranty Deed
A deed in which the grantor warrants title only against defects arising during the grantor’s ownership.

Key Term: Quitclaim Deed
A deed that conveys whatever interest the grantor has in the property, with no covenants or warranties of title.

Covenants for Title

Deeds may contain covenants for title—promises by the grantor about the state of the title. These covenants are divided into present and future covenants.

Present Covenants

These are breached, if at all, at the time of conveyance:

• Covenant of Seisin: The grantor promises they own the estate they purport to convey.
• Covenant of Right to Convey: The grantor promises they have the power to transfer the property.
• Covenant Against Encumbrances: The grantor promises there are no undisclosed encumbrances on the property.

Key Term: Present Covenant
A title covenant that is breached, if at all, at the moment of conveyance.

Future Covenants

These are breached, if at all, only upon disturbance of the grantee’s possession:

• Covenant of Quiet Enjoyment: The grantee will not be disturbed by a third party’s lawful claim of title.
• Covenant of Warranty: The grantor will defend the grantee against lawful claims and compensate for loss of title.
• Covenant for Further Assurances: The grantor will take necessary steps to perfect the grantee’s title if needed.

Key Term: Future Covenant
A title covenant that is breached only when the grantee is actually disturbed in possession by a third party’s claim.

Comparison Table: Types of Deeds and Covenants

Worked Example 1.1

Scenario:
Seller conveys Blackacre to Buyer by general warranty deed. Unknown to both, a third party holds a valid easement across Blackacre. Buyer later discovers the easement and sues Seller for breach of covenant.

Answer:
The covenant against encumbrances is a present covenant and is breached at the time of conveyance if an undisclosed easement exists. Buyer may sue Seller for damages for breach of this covenant.

Worked Example 1.2

Scenario:
Grantor conveys land by quitclaim deed to Grantee. Grantor does not own the land at the time but acquires good title a year later. Grantee demands title.

Answer:
Under a quitclaim deed, the grantee receives only what the grantor owns at the time of conveyance. After-acquired title does not automatically pass to the grantee. Grantee gets nothing unless the grantor executes a new deed.

Worked Example 1.3

Scenario:
Owner conveys land by special warranty deed, and a prior mortgage (from before Owner’s ownership) is later enforced against the grantee. Grantee sues Owner for breach of covenant of warranty.

Answer:
The special warranty deed only covers defects arising during Owner’s ownership. Since the mortgage predates Owner, the grantee cannot recover from Owner for breach of covenant of warranty.

Exam Warning

On the MBE, do not assume a quitclaim deed is “bad” or “invalid”—it simply provides no covenants. The grantee takes the risk of title defects.

Revision Tip

Remember: Present covenants are breached, if at all, at delivery—future covenants are breached only if the grantee is later disturbed in possession.

Summary

• General warranty deeds provide the broadest title protection, covering all defects.
• Special warranty deeds protect only against defects arising during the grantor’s ownership.
• Quitclaim deeds provide no title covenants.
• Present covenants are breached at conveyance; future covenants are breached only upon disturbance of possession.
• Remedies for breach of covenants include damages; remote grantees can enforce future covenants but not present covenants.

Key Point Checklist

This article has covered the following key knowledge points:

• General warranty, special warranty, and quitclaim deeds differ in scope of title protection.
• General warranty deeds contain six covenants for title; special warranty deeds cover only the grantor’s acts.
• Quitclaim deeds provide no covenants; grantee takes whatever interest the grantor has.
• Present covenants (seisin, right to convey, against encumbrances) are breached at delivery.
• Future covenants (quiet enjoyment, warranty, further assurances) are breached only upon disturbance of possession.
• Remedies for breach of covenants are typically damages; remote grantees can enforce future but not present covenants.
• Estoppel by deed applies only to warranty deeds, not quitclaim deeds.

Key Terms and Concepts

• General Warranty Deed
• Special Warranty Deed
• Quitclaim Deed
• Present Covenant
• Future Covenant