Warranty Deed Vs Covenant Deed

State:
Michigan
Control #:
MI-BM-022
Format:
Word; 
Rich Text
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Description

A warranty deed and a covenant deed serve distinct purposes in real estate transactions. A warranty deed guarantees that the grantor holds clear title to the property and warrants the title against any claims, providing a higher level of protection for the grantee. In contrast, a covenant deed offers covenants or promises made by the seller regarding the property’s title, but does not contain the same level of guarantee as a warranty deed. Filling out a covenant deed requires attention to detail, including correctly identifying the parties involved and providing a description of the property. It is essential to include any relevant covenants, restrictions, and easements. This form can be particularly useful for attorneys and paralegals working with clients involved in property transactions, as it facilitates clear communication of title issues. Legal assistants may utilize this form to help organize documentation, while owners and partners may need to understand their rights and responsibilities when conveying property. Whether for protection or to clarify property conditions, understanding the differences between these deeds assists users in selecting the correct form for their needs.
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FAQ

A property covenant is an agreement between two or more parties regarding certain use of a piece of real property. The covenant will either benefit or burden the landowner. A covenant that burdens the landowner is also called a restrictive covenant.

If a defect in the title arises years before the grantor owned the property, then the grantor is still liable under the covenants for title. General warranty deeds guarantee to the grantee that the property is being transferred free and clear, or without any encumbrances or limitations.

The guarantees of a general warranty deed are known as covenants. Traditionally, there are six covenants of title which can be divided into present covenants and future covenants.

There are up to six express covenants that may be found in a deed: the covenant of seisin, the covenant of the right to convey, the covenant against encumbrances, the covenant of quiet enjoyment, the covenant of general warranty, and the covenant of further assurances.

Negative covenants are actions you can't take, while positive covenants are actions you must take. For example, a negative covenant in real estate could prevent you from raising chickens on your property. On the other hand, a positive covenant could require you to mow your lawn.

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Warranty Deed Vs Covenant Deed