What does a warranty covenant guarantee to a grantee?

A warranty covenant is a promise made by the grantor (the seller) to the grantee (the buyer) that certain assurances regarding the property are valid. Specifically, in the context of a warranty deed, this covenant guarantees that the grantor will compensate the grantee for any losses arising from claims of third parties regarding encroachments or defects in title. By including this covenant, the grantor is effectively providing a form of legal protection to the grantee, ensuring that if any legal issues or disputes arise concerning ownership or usage rights due to defects in the title, the grantor will defend against such claims.

In the context of other options, the absence of liens on the property is related to a specific warranty known as the "covenant against encumbrances," which may not be specifically covered in all warranty covenants. The ability to sell the property without restrictions relates more to the type of title being conveyed rather than a warranty covenant. Exclusivity in property rights pertains to the rights of ownership but does not directly fall within the guarantees made under a warranty covenant in the same context as encroachments and title defense. Thus, the essence of a warranty covenant focuses on the defense and compensation for claims made by others regarding use and title of