In contrast to the Quitclaim Deed, a Warranty Deed is a deed that contains an express covenant of warranty. A covenant of warranty is an undertaking by the grantor that he will compensate the grantee upon the failure of the grantee’s title by reason of some third party setting up a superior title. A covenant of warranty that is in the deed and made for the direct benefit of the property runs with the land and thus the grantor is liable to purchasers from his grantee as well as the grantee. A covenant of warranty is breached only when the grantee is evicted from possession of the property.
A covenant for quiet possession or enjoyment is similar to a covenant of warranty and will provide compensation to the grantee if his quiet possession of the property is disturbed. It too runs with the land and is not breached until the quiet possession is disturbed. Another similar covenant is the covenant for further assurance under which the grantor covenants to do such further acts for the purpose of perfecting the grantee’s title as the grantee may reasonably require. It too runs with the land.
Right to Convey
The final covenant is the covenant of right to convey. It is similar to the covenant of seisin but it may be used by one who does not own the property but has the right to convey it such as an attorney in fact for the owner. It does not run with the land and is breached at the time of conveyance. Warranty deeds and the other covenants discussed in this section are not used very often in California because buyers rely on title insurance to protect them if they have title problems.