A general warranty deed provides the most comprehensive guarantee of title protection for the purchaser of real property, due to the covenants, or warranties, given by the seller/grantor. A general warranty deed includes a covenant of full warranty or warranty forever, which guarantees that the grantor will “warrant and forever defend” the right and title to the real property being conveyed unto the grantee against the claims of all persons whomsoever.
Item 2 of the conditions and stipulations section of the ALTA owner’s policy states that the “coverage of this policy shall continue in force as of Date of Policy in favor of the insured…so long as the insured shall have liability by reason of covenants of warranty made by the insured in any transfer or conveyance of the estate or interest.”
General warranty deeds (and all other deeds) must be executed and acknowledged in accordance with applicable state laws. It should be noted that some of the states in the Western United States have adopted the Grant Deed or a statutory form of Bargain and Sale Deed which is used in lieu of the General Warranty Deed. The warranties contained in these deeds are prescribed by the statutes of such states.