Which document would be used to transfer property with covenants of title?

Which document would be used to transfer property with covenants of title?

• A. Warranty Deed
• B. Quit Claim Deed
• C. Special Warranty Deed
• D. Deed of Trust

Answer: (A)

Covenants of title are promises about the quality of the property's title that protect the person receiving the property. The document that provides the broadest set of these assurances is the warranty deed. It guarantees the grantor actually owns the property, that there are no undisclosed encumbrances, and that the grantor will defend the title against future claims. It also includes protections like the right to further assurances and a warranty of title. This level of protection is why a warranty deed is used when transferring property with covenants of title. A quit claim deed transfers whatever interest the grantor has without warranties, so it offers no covenants of title. A special warranty deed only covers defects that occurred during the grantor’s ownership, not issues from earlier owners. A deed of trust is a security instrument, not the typical deed used to transfer title with covenants of title.

Covenants of title are promises about the quality of the property's title that protect the person receiving the property. The document that provides the broadest set of these assurances is the warranty deed. It guarantees the grantor actually owns the property, that there are no undisclosed encumbrances, and that the grantor will defend the title against future claims. It also includes protections like the right to further assurances and a warranty of title. This level of protection is why a warranty deed is used when transferring property with covenants of title. A quit claim deed transfers whatever interest the grantor has without warranties, so it offers no covenants of title. A special warranty deed only covers defects that occurred during the grantor’s ownership, not issues from earlier owners. A deed of trust is a security instrument, not the typical deed used to transfer title with covenants of title.