Deed Promises

"Deeds are a kind of contract representing the transfer of real property from one person to another. Once executed by a grantor, the deed replaces the sales contract as the complete agreement between the parties. The buyer of real estate, after delivery of the deed, can sue on the warranties in the deed, not on promises in the real estate contract. Deeds must include a recitation of the parties, a description of the property, an intent to transfer the property immediately, the grantor’s signature, and delivery to the grantee. The three major deed types are the General Warranty Deed, the Special Warranty Deed, and the Quitclaim Deed. The General Warranty Deed provides the strongest set of promises; the Special Warranty Deed warrants only against title defects arising during the grantor’s ownership; and the Quitclaim Deed promises only to grant what the grantor has, which may be nothing. The covenants in a General Warranty Deed include seisin and good right to convey, against encumbrances, and quiet enjoyment. Seisin means legal possession, and the grantor promises to have legal possession and the right to sell the property. The grantor also promises to disclose encumbrances, such as an undisclosed utility easement, and to defend against someone who claims title. The covenant of seisin and the covenant against encumbrances are breached, if at all, at the moment of transfer, while the covenant of quiet enjoyment arises only when someone actually disturbs the grantee’s ownership."