What is a covenant of warranty?
A covenant of warranty is an agreement in property law that promises a buyer the protection of a warranty if the property does not live up to expectations. In California, the covenant of warranty must be in writing and provide assurance that the title to the property is free and clear of all liens and encumbrances, and that the purchaser will have quiet enjoyment of the property with no interference from any party, including the seller. The covenant also includes a promise from the seller that the property will be free from defects, free from any liens placed after the purchase, and that all improvements have been properly constructed and are in good condition. This assurance of quality is what makes it so valuable to the buyer of a property. The covenant of warranty is a legally binding document, so if the seller fails to uphold their agreement, the buyer may be able to sue the seller for breach of contract.
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