Understanding Deed Covenants: The Difference Between Quitclaim and Warranty Covenants

In Massachusetts real estate transactions, one aspect of a property transfer is the type of deed being used. The key distinction between the various types of deeds—warranty deeds, quitclaim deeds, and release deeds—lies in the covenants they contain. These covenants dictate the level of protection provided to the buyer, known as the grantee, against potential claims or encumbrances on the property. Understanding these deed covenants is essential for both buyers and sellers during the conveyancing process.

What Are Deed Covenants?

In real estate law, covenants are promises or guarantees made by the grantor (the seller) to the grantee (the buyer) regarding the status of the property being conveyed. The most common covenants relate to the grantor’s ownership of the property, their right to sell it, and whether the property is free of any encumbrances (such as liens or claims by third parties).

The type of deed used in a property transfer will define the extent and scope of these covenants. In Massachusetts, it is common to specify the nature of the covenants directly on the face of the deed using phrases like “with quitclaim covenants” or “with warranty covenants.”

Warranty Covenants

A warranty deed provides the highest level of protection for the buyer. It contains several express covenants that guarantee the grantor’s legal authority to transfer the property and ensure the property is free from encumbrances. These are the core warranty covenants included in a statutory form warranty deed, as outlined in G.L. c. 183, § 16:

  1. The grantor is lawfully seized in fee simple: This means the grantor owns the property outright.
  2. The grantor has the right to sell the property: This ensures the grantor has the authority to transfer ownership.
  3. The property is free from encumbrances: The property is free from liens, claims, or other third-party interests.
  4. The grantor will defend the title: The grantor promises to protect the grantee from any lawful claims against the property from third parties.

These covenants offer comprehensive protection to the buyer. If any of these covenants are breached, the grantee can take legal action against the grantor. For instance, if a claim arises from a title defect, the grantor must defend the buyer’s right to the property.

The warranty covenants are not limited to the grantor’s period of ownership—they extend to the actions of any prior owners as well. This means that even if a title issue stems from a predecessor, the grantor is still responsible for defending the title.

Quitclaim Covenants

By contrast, a quitclaim deed provides fewer guarantees to the buyer. Quitclaim covenants offer more limited protection compared to the broader protections found in a warranty deed. According to G.L. c. 183, § 17, a quitclaim deed includes the following covenants:

  1. The property is free from encumbrances made by the grantor: This means that the grantor guarantees only that they have not created any encumbrances on the property.
  2. The grantor will defend against claims by those under them: The grantor promises to defend the grantee from claims made by anyone claiming through the grantor (e.g., heirs or executors), but not from claims made by previous owners.

The key difference between quitclaim and warranty covenants lies in the scope of the Seller’s covenants. With a quitclaim deed, the Seller does not guarantee the property’s title is free from defects created by earlier owners. Instead, it only covers defects or encumbrances that arose during the grantor’s ownership.

For this reason, a quitclaim deed is often used in transactions where the grantor may not have complete knowledge of the property’s history or wants to limit their liability. While quitclaim covenants still provide some level of protection, they do not offer the full coverage of a warranty deed. Quitclaim deeds are utilized in Eastern Massachusetts by custom. It is unusual for a warranty deed to be requested or delivered in Eastern Massachusetts. The vast majority of buyers purchase owner’s title insurance which makes warranty covenants moot.

Conclusion

When engaging in a real estate transaction, it is important to understand the level of protection you are receiving—or providing—through the type of deed used. A warranty deed is ideal for buyers seeking the highest level of protection, as it covers all potential title defects, regardless of when they arose. On the other hand, a quitclaim deed is more limited in scope, offering less protection but still sufficient in many situations where the grantor’s title is known to be sound. This distinction is less important when the Buyer obtains an owner’s title insurance policy.

If you are unsure which deed is appropriate for your situation, consulting with an experienced Massachusetts real estate attorney is crucial. Understanding deed covenants can help ensure a smooth property transfer and protect your rights throughout the transaction.

For more information on deed covenants, quitclaim deeds, or warranty deeds, and how they apply to your real estate transaction, contact a qualified real estate attorney today.

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