Covenant Vs. Warranty Deed

Question: Can you explain the difference between a Covenant Deed and a normal Warranty Deed?

I have a quick question about Michigan real estate law. Can you explain the difference between a Covenant Deed and a normal Warranty Deed. We are looking at some property on Paw Paw Lake in Coloma, Michigan. The seller has proposed to deliver a Covenant Deed instead of a Warranty Deed. Thanks for the help - have a nice weekend.

Answer: A Covenant Deed is given by some businesses or government agencies that for some reason or another are afraid to give a warranty deed. Usually the reason is a concern with being sued after the sale for failure to deliver clear title. Since upon closing you would be provide or receive a title insurance policy, the quality of title is insured. The key to accepting a Covenant Deed, where the normal warranties in the deed are withheld in some manner or another (all Covenant Deeds are just a little different depending on who is doing the drafting), is to make sure the purchase agreement requires delivery of "marketable title" and that you then obtain a Survey with the boundaries certified to you the buyer and the title insurance company and then also obtain a title insurance policy without exceptions to protect you. I hope this helps. I recommend that you have one of our lawyers assist you with closing and review the Covenant Deed , Title Insurance and Survey, to help make sure you are deeded clear title.

Attorney: Mark Miller

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