PastPaperHero | Titles - Types of deeds (including covenants for title)

Learning Outcomes

This article explains deed-based title transfers for the MBE, including:

How to distinguish among general warranty, special warranty, quitclaim, and other non-warranty deeds, and predict the level of title protection each confers in typical exam hypotheticals
How the six classic covenants for title (seisin, right to convey, against encumbrances, quiet enjoyment, warranty, further assurances) are classified as present or future covenants and what each one specifically protects against
When each covenant is breached, how the statute of limitations runs for present versus future covenants, and how those timing rules affect available claims on bar-style questions
Which covenants run with the land so that remote grantees can enforce them, versus which protect only the original grantee, and how to trace liability back through a chain of title
How estoppel by deed and after-acquired title operate with general and special warranty deeds, why they do not apply to quitclaim deeds, and how recording acts and bona fide purchaser status can alter outcomes
The standard measures of damages for total and partial failure of title and for encumbrances, including typical caps and exam-appropriate ways to articulate the remedy

MBE Syllabus

For the MBE, you are required to understand how title to real property is transferred by deed and what promises accompany that transfer, with a focus on the following syllabus points:

Valid deeds: execution, delivery, and acceptance (high-level background)
Types of deeds: general warranty, special warranty, and quitclaim
Present covenants (seisin, right to convey, against encumbrances) and future covenants (quiet enjoyment, warranty, further assurances)
When present versus future covenants are breached and how statutes of limitations run
Which covenants run to remote grantees and can be enforced by later purchasers
Estoppel by deed and after-acquired title in warranty deeds, and why quitclaim deeds are treated differently
Remedies and typical damages for breach of covenants for title

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.

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
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
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
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.

Key Term: Title
The legal relationship between a person and real property, reflecting who owns what interest in the land. “Title” is an abstract concept; it is not the same thing as the physical deed.

Key Term: Deed
A written instrument that transfers legal title to real property from a grantor to a grantee when properly executed, delivered, and accepted.

On the exam, you must be able to distinguish what is being transferred (title to a particular estate, such as fee simple) from how it is transferred (by deed) and what promises about that title, if any, accompany the transfer (the covenants for title).

Basic Requirements for a Valid Deed

At a high level, any valid deed must:

Identify the grantor and grantee
Describe the property sufficiently to locate it
Contain words of grant (showing an intent to convey)
Be signed by the grantor
Be delivered with the intent to make a present transfer, and accepted by the grantee

Key Term: Legal Title
The ownership interest recognized and enforceable at law, held by the person in whose name the property is vested after delivery of a valid deed.

Key Term: Equitable Title
A beneficial ownership interest, such as the buyer’s interest under a land sale contract before closing; gives the right to obtain legal title in the future.

Once a valid deed is delivered and accepted, legal title passes to the grantee. Acceptance is generally presumed if the conveyance is beneficial to the grantee.

Delivery is fundamentally about intent:

Physical handover of the deed is strong evidence of delivery, but not strictly required.
A grantor can deliver by telling the grantee the deed has been executed for them, or by placing it with an escrow agent with irrevocable instructions to deliver.
If the grantor reserves the right to take the deed back (e.g., “Give this deed to A in two months unless I change my mind”), there is no effective delivery.

Once delivered, the grantor cannot revoke the deed simply by destroying it or asking for it back. Any later change in ownership requires a new valid conveyance.

What varies from deed to deed is what promises about title the grantor is making. Those promises are the covenants for title.

Types of Deeds

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

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.
Special Warranty Deed: The grantor warrants title only against defects arising from the grantor’s own acts or omissions, not those of prior owners.
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 in title, whenever they arose, including those caused by prior owners.

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

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

On the MBE:

If the deed is described as a “general warranty deed,” assume all six covenants for title are present and apply to any title defect, no matter when it arose.
A “special warranty deed” usually contains the same six covenants, but they are limited in scope to defects caused by the grantor’s acts or omissions.
A “quitclaim deed” contains no covenants for title unless the fact pattern expressly provides otherwise.

You may also see references to “bargain and sale deeds” or statutory grant deeds. For MBE purposes, unless the question tells you otherwise, treat them as non-warranty deeds or as special warranty deeds only if the facts say they contain limited covenants.

Covenants for Title: Overview

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.

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

Key Term: Future Covenant
A title covenant that is breached, if at all, only when the grantee is later disturbed in possession by a third party’s lawful claim.

The six classic covenants are:

Present covenants:
- Covenant of seisin
- Covenant of right to convey
- Covenant against encumbrances
Future covenants:
- Covenant of quiet enjoyment
- Covenant of warranty
- Covenant for further assurances

Each covenant protects against a different kind of title problem and has its own point of breach and measure of damages.

Present Covenants

These covenants concern the state of title at the time of conveyance. If breached, they are breached immediately upon delivery. The statute of limitations on a present covenant therefore begins to run at delivery.

Covenant of Seisin: The grantor promises they own the estate they purport to convey (e.g., fee simple).
Covenant of Right to Convey: The grantor promises they have the power to transfer the property. This often overlaps with seisin, but can differ, for example, when a trustee holds legal title but lacks power to convey.
Covenant Against Encumbrances: The grantor promises there are no encumbrances (easements, mortgages, liens, restrictive covenants, etc.) on the property other than those disclosed in the deed.

Key Term: Covenant of Seisin
A present covenant that the grantor actually owns the estate in the land that the deed purports to convey.

Key Term: Covenant of Right to Convey
A present covenant that the grantor has the legal power to transfer the property (e.g., is not under a disability and holds the necessary interest).

Key Term: Covenant Against Encumbrances
A present covenant that there are no encumbrances (such as mortgages, liens, easements, or restrictive covenants) on the property other than those disclosed in the deed.

Important exam points about present covenants:

The covenant of seisin is breached if the grantor does not in fact hold the estate purportedly conveyed. For example:
- Grantor owns only a life estate but purports to convey a fee simple.
- Adverse possession has cut down the grantor’s interest and the deed purports to convey the full parcel.
The covenant of right to convey is breached if the grantor lacks authority to convey (e.g., a trustee without power to sell, a corporation whose officers lack authority).
The covenant against encumbrances is breached if any undisclosed encumbrance exists at delivery:
- Mortgages and other liens
- Easements (even beneficial ones, like utility easements)
- Profits, real covenants, options to purchase, rights of first refusal

The grantee’s knowledge of the encumbrance is irrelevant; the covenant speaks to the existence of encumbrances, not to notice.

Because present covenants are breached, if at all, at delivery, they normally do not run to remote grantees. A later purchaser down the chain of title cannot usually sue an earlier grantor for breach of a present covenant; only the grantee at the time of the original breach can.

Future Covenants

Future covenants protect against disturbances of possession by superior title holders. They are breached, if at all, only when there is a disturbance of the grantee’s possession by a third party holding superior title. The statute of limitations runs from the time of disturbance, not from delivery.

Covenant of Quiet Enjoyment: The grantee will not be disturbed in possession by a third party’s lawful claim of title.
Covenant of Warranty: The grantor will defend the grantee against lawful claims of title and compensate for loss of title.
Covenant for Further Assurances: The grantor will take necessary steps in the future to perfect the grantee’s title if a problem arises (e.g., executing corrective documents).

Key Term: Covenant of Quiet Enjoyment
A future covenant that the grantee’s possession will not be disturbed by a third party holding superior title.

Key Term: Covenant of Warranty
A future covenant that the grantor will defend the grantee against lawful claims of title and compensate the grantee if title fails.

Key Term: Covenant for Further Assurances
A future covenant that the grantor will do whatever is reasonably necessary in the future to perfect the grantee’s title.

The disturbance of possession can be:

Actual eviction by a holder of superior title.
Constructive eviction, such as being forced to pay off a senior lien or buy out a superior title to avoid losing possession.

Future covenants do run with the land. A remote grantee who is later evicted or forced to surrender title can sue an earlier grantor (for example, the original grantor who gave a general warranty deed) for breach of the future covenants.

Which Deed Contains Which Covenants

On the MBE, assume the following unless the facts say otherwise:

Deed Type	Present Covenants	Future Covenants	Scope of Protection
General Warranty	Yes	Yes	All defects, whenever arising
Special Warranty	Yes	Yes	Only defects caused by grantor
Quitclaim	No	No	No title protection via covenants

A special warranty deed promises in substance: “I haven’t done anything to impair title, but I’m not promising what earlier owners did.” Thus, if a mortgage or easement predated the grantor’s ownership, a grantee under a special warranty deed cannot recover against that grantor for that defect.

Key Term: Marketable Title
Title reasonably free from doubt and from the risk of litigation, such that a reasonably prudent buyer would accept it. The seller typically must deliver marketable title at closing, regardless of the type of deed used.

Note that marketable title is a contract-law concept that applies at closing under the land sale contract, not a covenant in the deed. Once the deed is delivered, the buyer’s protection shifts from the contract’s promise of marketable title to whatever covenants are in the deed.

A key MBE distinction:

Before closing: the buyer’s remedy is under the contract (marketable title).
After closing and delivery of the deed: the contract merges into the deed; the buyer’s remedy is under the deed 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 encumbrance (such as an easement) exists. Buyer may sue Seller for damages for breach of this covenant. The fact that both parties were unaware of the easement is irrelevant; the covenant is about the state of title, not the grantor’s knowledge.

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 whatever interest the grantor owns at the time of conveyance. Because Grantor had no title when the deed was delivered, nothing passed. The doctrine of estoppel by deed and after-acquired title does not apply to quitclaim deeds. Grantee gets nothing unless 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 the covenant of warranty.

Answer:
The special warranty deed only covers defects arising during Owner’s ownership. Because the mortgage predates Owner’s ownership, the defect is outside the scope of Owner’s warranty. Grantee cannot recover from Owner for breach of covenant of warranty.

Estoppel by Deed and After-acquired Title

Sometimes a grantor purports to convey title they do not yet have. The effect depends on the type of deed.

Key Term: Estoppel by Deed
A doctrine under which a grantor who conveys land by warranty deed while lacking title is estopped from denying the grant if they later acquire title; the after-acquired title automatically benefits the earlier grantee.

Key Term: After-acquired Title
Title the grantor obtains after having previously attempted to convey the same property.

Under estoppel by deed:

If Grantor conveys Blackacre by general warranty deed when Grantor does not own it, but later acquires title, the after-acquired title automatically passes to Grantee. Grantor is estopped to deny the earlier conveyance.
The same result generally applies to a special warranty deed, because it still contains covenants for title (at least as to the grantor’s acts).
Estoppel by deed does not apply to quitclaim deeds, because the grantor has promised only to convey whatever interest they currently have, which may be nothing.

However, estoppel by deed typically does not defeat the rights of a subsequent bona fide purchaser (BFP) who later acquires title from the now-true owner.

Key Term: Bona Fide Purchaser
A person who acquires an interest in property for value and without notice of a prior adverse interest.

If the original grantor later conveys the now-valid title to a BFP, the BFP’s rights usually prevail over the earlier grantee’s claim to the property itself, though the earlier grantee may still have a damages action against the grantor for breach of covenants.

Worked Example 1.4

Scenario:
O owns nothing. O conveys Whiteacre to A by general warranty deed. A records. Later, O actually acquires title to Whiteacre from T and then conveys Whiteacre to B, a BFP who takes without notice of A’s deed and records.

Answer:
As between O and A, estoppel by deed would normally cause O’s after-acquired title to pass automatically to A. But B is a subsequent BFP who took from the true owner (O once O purchased from T) without notice and recorded. In a recording-act jurisdiction, B will usually take the property. A’s remedy is to sue O for breach of covenants (seisin and right to convey were false at the time of O’s deed to A).

Enforcement by Remote Grantees and Limitations Periods

Two exam-tested distinctions:

Present covenants:
- Breached, if at all, at delivery.
- Statute of limitations starts to run at delivery.
- Typically enforceable only by the immediate grantee (not by remote grantees) under the majority rule.
Future covenants:
- Breached, if at all, when the grantee (or a remote grantee) is disturbed in possession (e.g., evicted by a holder of superior title or forced to buy out a superior title).
- Statute of limitations starts to run at disturbance, not at delivery.
- Run with the land and can be enforced by remote grantees.

Thus, if O conveys to A by general warranty deed, and A later conveys to B, who is then evicted by a third party with superior title, B may sue O for breach of the covenant of warranty or quiet enjoyment, even though B never dealt directly with O.

A minority of jurisdictions treat some present covenants as running with the land, but for MBE purposes apply the majority rule: present covenants protect only the first grantee; future covenants protect later grantees as well.

Damages for Breach of Covenants

While exact measures vary by jurisdiction, MBE-style questions test general patterns:

Total failure of title (e.g., grantor had nothing; breach of seisin or right to convey):
- Damages often equal the purchase price paid by the grantee plus incidental costs (e.g., recording fees, perhaps interest), but not consequential damages like lost profits.
Partial failure of title (grantor owns some but not all of what was purportedly conveyed):
- Damages are typically a proportionate part of the purchase price corresponding to the portion lost.
Breach of covenant against encumbrances (e.g., undisclosed easement or mortgage):
- If the encumbrance is removable (e.g., a lien that can be paid off), damages are typically the cost of removing it (e.g., paying off the lien up to the purchase price cap).
- If not removable (e.g., an easement that cannot reasonably be eliminated), damages are often the difference between the value of the land with and without the encumbrance.
Future covenants (eviction by superior title or required buy-out of superior title):
- Damages often equal the value of the property (or interest) lost, but are usually capped at the purchase price from the breaching grantor, plus reasonable costs of defending the title (e.g., attorney’s fees in defending, if allowed).

The MBE usually will not require exact dollar calculations; the key is identifying which covenant was breached and which grantor is liable, and recognizing that recovery is generally limited by the consideration paid to that grantor.

Worked Example 1.5

Scenario:
O conveys Blackacre to A by general warranty deed for $100,000. Unknown to both, O’s predecessor had previously conveyed the back one-third of Blackacre to X, who is still in possession of that part. A later discovers X’s superior title and sues O for breach of covenant of seisin.

Answer:
O purported to convey the entire parcel but did not own the back one-third. The covenant of seisin was therefore breached at conveyance. A’s damages are typically one-third of the purchase price (the value of the part not owned), here $33,333, plus incidental costs. A cannot recover the full$ 100,000 because she did receive good title to the front two-thirds.

Worked Example 1.6

Scenario:
Seller conveys Greenacre to Buyer by general warranty deed for $300,000. Unknown to both, there is an undisclosed old mortgage of$ 50,000 on Greenacre. Buyer later pays off the mortgage to prevent foreclosure and sues Seller.

Answer:
The undisclosed mortgage breaches the covenant against encumbrances at delivery. Because the encumbrance is removable by payment, Buyer’s damages will typically equal the cost of removal—here, the $50,000 paid to satisfy the mortgage—subject to the cap of the purchase price paid to Seller. Buyer cannot recover more than$ 300,000 from Seller on this covenant.

Worked Example 1.7

Scenario:
O conveys Blueacre to A by general warranty deed. A later conveys to B by quitclaim deed. B is later evicted by C, who proves better title. B sues O and A.

Answer:
B cannot sue A on any covenants because A conveyed by quitclaim and made no covenants. However, the future covenants (quiet enjoyment, warranty, further assurances) in O’s general warranty deed run with the land and protect B as a remote grantee. The covenant of quiet enjoyment and warranty are breached when B is evicted by C. B can therefore sue O for damages under those future covenants, generally capped at the price A paid to O, not the higher amount B paid to A.

Worked Example 1.8

Scenario:
O conveys Brownacre to A by special warranty deed. Before O’s ownership, Brownacre was subject to an undisclosed easement in favor of a utility company. The easement substantially lowers the value of Brownacre. A is later ousted from a portion of the land by the easement holder and sues O.

Answer:
The easement is an encumbrance that predates O’s ownership. A special warranty deed only protects against defects arising from the grantor’s own acts or omissions. Because the easement was created before O took title, O has not breached any covenant. A’s only recourse is against prior grantors (if they made covenants) or under the land sale contract if that claim is still timely.

Worked Example 1.9

Scenario:
On January 1, O conveys Redacre to A by general warranty deed. A does nothing. Ten years later, A conveys to B by general warranty deed. One year after that, B is evicted by X, who has superior title. The statute of limitations for contract actions is 6 years.

Answer:
Any present covenant breach by O (e.g., seisin, right to convey, or against encumbrances) occurred and accrued on January 1 when O conveyed to A. The limitations period for those present covenants expired 6 years later, well before B’s eviction. B cannot sue O on present covenants. However, the future covenants in O’s deed (quiet enjoyment, warranty, further assurances) run with the land and are breached only upon B’s eviction. B can sue O on those future covenants because the limitations period runs from the time of disturbance (the eviction), not from O’s conveyance to A.

Worked Example 1.10

Scenario:
Grantor conveys Parcel to Grantee by general warranty deed but refuses to sign an additional boundary line agreement needed to correct a minor survey error that is preventing Grantee from obtaining financing. A court later orders Grantor to sign the boundary agreement.

Answer:
Grantor’s promise in the covenant for further assurances is to do whatever is reasonably necessary in the future to perfect Grantee’s title. Refusing to execute a necessary corrective document breaches that covenant. The remedy is typically specific performance—compelling Grantor to execute the corrective instrument—rather than money damages.

Interaction with Recording Acts and Marketable Title

Remember the sequence of protection:

Land sale contract stage
- Buyer is protected by the implied covenant to deliver marketable title at closing, regardless of deed type.
After deed delivery:
- Deed covenants govern. The contract merges into the deed; absent fraud or separate collateral promises, the buyer can no longer sue on contract-based marketable title but must rely on deed covenants.
Recording acts:
- Determine priority between competing claimants. Even a grantee with perfect covenants can lose the land itself to a later BFP, but still recover damages from the grantor for breach of covenants.

Deed covenants and recording acts are separate sources of protection:

Recording acts protect purchasers against prior unrecorded interests.
Deed covenants protect grantees against defects in the grantor’s title, whether or not recorded, depending on the deed type and covenant.

Exam Warning