Bargain and Sale, Warranty and Quitclaim Deeds Compared

For the New York salesperson exam, ask: What interest can this grantor convey, and what covenant does this deed add?

What is the fastest deed-form comparison?

The buyer's title may be good or defective under any label. The deed form tells you what the grantor promises about title. A title search tells you what the record shows. A title policy covers stated risks subject to its terms, exceptions and exclusions.

Official source map

The New York State Department of State Real Estate Salesperson 77-Hour Curriculum includes full-covenant, bargain and sale, quitclaim, executor and referee deeds in Subject 3, Legal Issues.

Real Property Law section 258 supplies New York's statutory short forms. It includes individual and corporate full-covenant deeds, bargain and sale deeds with and without the covenant against grantor, quitclaim deeds, an executor's deed and referee's deeds for foreclosure and partition.

Real Property Law section 253 defines the legal meaning of the deed covenants. Section 245 limits a conveyance to the estate or interest the grantor possessed or could lawfully convey, subject to the statute's stated protections.

What is the exam testing?

You should be able to:

• match each deed form to its covenants;
• distinguish a full title covenant from the limited covenant against grantor;
• explain why a quitclaim deed can transfer a valid ownership interest;
• explain why a deed cannot convey more than the grantor owns or may convey;
• identify an executor's or referee's source of authority;
• separate deed covenants from title insurance;
• separate a deed's promises from its execution, delivery and acceptance;
• avoid assuming that “warranty” means no title defect can exist;
• avoid assuming that “quitclaim” means the deed is forged or ineffective;
• distinguish the Lien Law trust-fund covenant from a general title warranty.

Start with the valid New York deed guide if the question concerns parties, description, signature, delivery, acceptance, acknowledgment or recording. This article answers a narrower question: what does each deed form promise?

What is a deed covenant?

A deed covenant is a legally enforceable promise stated or incorporated in the deed. It can concern the grantor's ownership, power to convey, undisclosed encumbrances, quiet possession, further title documents or defense of title.

The covenant does not create facts by saying them. If the deed promises that the property is free from encumbrances and a covered lien exists, the promise may be breached. The covenant gives the grantee a claim under the deed; it does not make the lien disappear.

This is why “warranty” and “title quality” are not synonyms. A warranty allocates responsibility if the promise proves false.

What is a New York deed with full covenants?

New York's statutory label is deed with full covenants. People also use “full-covenant and warranty deed” or “warranty deed” to describe the form.

The individual and corporate forms in Real Property Law section 258 make five covenants:

1. the grantor is seized in fee simple and has the right to convey;
2. the grantee shall quietly enjoy the premises;
3. the premises are free from encumbrances;
4. the grantor will provide further necessary assurance of title;
5. the grantor will warrant and defend title.

These are promises from the grantor, not a government certification and not a substitute for examining the title record.

What does the covenant of seizin promise?

Under Real Property Law section 253(1), the statutory seizin language means the grantor is lawfully seized of the described fee-simple estate and has the right, power and lawful authority to convey it at execution and delivery.

For exam purposes, combine two ideas:

• the grantor owns the estate described;
• the grantor has the legal right to convey it.

Avoid confusing seizin with physical occupancy. A landlord can be seized of title while a tenant possesses the apartment under a lease.

What does quiet enjoyment promise?

The covenant of quiet enjoyment promises that the grantee may hold, use and possess the premises without lawful disturbance by the grantor, the grantor's successors or another person lawfully claiming the property.

“Quiet” does not mean low noise. It concerns possession free from a superior lawful title claim covered by the covenant.

Example:

A neighbor holds a better title to half the parcel and lawfully evicts the grantee from that half.

That can raise quiet-enjoyment and warranty issues. A noisy party next door does not become a deed-covenant breach merely because the word quiet appears in the deed.

What does freedom from encumbrances promise?

The full-covenant form promises that the premises are free from encumbrances. Real Property Law section 253(3) defines the covenant broadly to include prior titles, charges, judgments, taxes, assessments, liens and other encumbrances.

An encumbrance can burden title without transferring ownership. Mortgages, tax liens, judgments, easements and restrictive covenants can matter, although whether a disclosed or accepted matter breaches a particular deed or contract depends on the actual language and transaction.

In Prendergast v Swiencicky, the Appellate Division explained that a breach of the covenant against encumbrances occurs, if at all, upon deed delivery. The decision also shows why closing payoffs, satisfactions and deed language require careful coordination.

Review general and specific liens when the question asks what burden exists rather than which deed covenant responds.

What does further assurance promise?

The further-assurance covenant requires the grantor and covered successors to take reasonable, lawful additional steps needed to confirm the conveyed title when properly requested and at the grantee's proper cost.

Examples can include signing a confirmatory document or correcting an execution issue. It does not authorize the grantee or salesperson to rewrite a deed unilaterally.

The exact right is defined in Real Property Law section 253(4). A real dispute requires attorney review of the request, cost, reasonableness and defect.

What does warranty of title promise?

The warranty covenant requires the grantor and covered successors to warrant and defend the conveyed premises against the grantor's successors and other persons lawfully claiming title.

It is broader than the covenant against grantor's acts. The statutory warranty language reaches lawful claims beyond defects personally created by the current grantor.

The covenant does not promise that no person will ever make a claim. It promises defense and responsibility within the covenant's legal scope if a lawful covered claim exists.

Are these five covenants present or future covenants?

The traditional classification helps explain when a claim arises:

• seizin, right to convey and freedom from encumbrances concern the title condition at delivery;
• quiet enjoyment and warranty respond to later lawful disturbance or superior claims;
• further assurance requires later cooperation when reasonably needed.

New York's statutory form combines seizin and right to convey in its first covenant, which is why the state form is commonly taught as five covenants, not six separate promises.

Do not turn this classification into a damages conclusion. The facts, deed language, limitation periods and person enforcing the covenant matter.

What is a bargain and sale deed?

A bargain and sale deed uses grant-and-release language to transfer the grantor's estate and rights in the described premises. New York provides two statutory versions:

• bargain and sale with covenant against grantor;
• bargain and sale without covenant against grantor.

The phrase bargain and sale does not itself answer whether title is marketable, insured or free from liens. Read the covenant line.

What does “with covenant against grantor” mean?

The covenant says the grantor has not done or suffered anything by which the premises have been encumbered.

Real Property Law section 253(6) defines the promise. It focuses on acts and matters attributable to this grantor. It does not give the same broad protection as the five covenants in a full-covenant deed.

Example:

The grantor owned the property for three years and placed a mortgage on it during that period.

If the mortgage remains as an unaccepted encumbrance, the grantor's own act can implicate the covenant.

Change the facts:

A remote prior owner created an unreleased mortgage before the current grantor acquired title.

The limited covenant against the current grantor does not become a broad promise covering every earlier owner's act. The sales contract, title objections, payoff obligations and title policy may still address the defect.

What does “without covenant against grantor” mean?

The statutory form contains the grant-and-release language but omits the promise that the grantor did not create an encumbrance.

It can still convey all the estate and rights the grantor owns in the premises. It simply does not add the statutory covenant against the grantor's acts.

That makes two separate questions:

1. What interest did the grantor own and convey?
2. What promise did the grantor make about encumbrances?

A deed can transfer a sound fee-simple title without title covenants. A deed with covenants can also be breached because a covered defect exists.

Is a bargain and sale deed the same as a special warranty deed?

Avoid using the labels interchangeably on the exam. New York's statute names a bargain and sale deed with covenant against grantor and states the exact covenant. Other jurisdictions may use “special warranty deed” for a limited warranty, but the wording and legal effect can differ.

Use the New York label and covenant:

The grantor promises that the grantor did not do or suffer anything that encumbered the premises.

That phrasing is more accurate than importing another state's deed vocabulary.

What is a quitclaim deed?

The statutory quitclaim form says the grantor “remise[s], release[s], and quitclaim[s]” the described premises, together with the grantor's estate and rights in them. It does not include the five full covenants or the bargain-and-sale covenant against grantor.

A quitclaim deed therefore transfers the interest the grantor has, if any. It does not promise that the grantor owns an interest or that the title is free from defects.

In Margolin v Gatto, a quitclaim deed conveyed nothing because the grantors had already conveyed away the disputed interest. The problem was not that quitclaim deeds are ineffective. The grantors had no remaining interest to pass.

Can a quitclaim deed transfer full ownership?

Yes, if the grantor owns full title, has authority, and the deed validly conveys that interest. The lack of title covenants does not shrink the ownership the grantor actually passes.

The 2025 decision Murphy v Murphy illustrates the other side. A cotenant's quitclaim deed was valid, but it transferred only that cotenant's percentage because that was all the grantor owned.

Use the rule from Real Property Law section 245:

Deed form does not give the grantee more title than the grantor possessed or could lawfully convey.

When might a quitclaim deed appear?

A quitclaim deed can appear when parties intend to release or transfer whatever claim the grantor has without title promises. Examples can include:

• a transfer between family members;
• a transfer into or out of an entity or trust;
• a former spouse releasing an ownership claim;
• a cotenant transferring that cotenant's share;
• correction or confirmation of a disputed interest;
• resolution of a boundary or chain-of-title issue.

Those are contexts, not drafting recommendations. A quitclaim can trigger mortgage, tax, creditor, estate, benefits, divorce and title consequences. The parties need attorneys and title professionals to select and prepare the instrument.

Is a quitclaim deed safer than a warranty deed?

“Safer” is incomplete. Safer for whom, against what risk and under what contract?

• The quitclaim grantor makes fewer title promises.
• The grantee receives less contractual assurance from the grantor.
• Neither form removes recorded liens or forgery.
• The sales contract may require a particular deed and marketable title.
• Title insurance can address covered title risks under a separate policy.

Choose the exam answer that identifies the covenant, not a universal ranking.

What is an executor's deed?

An executor's deed is used when an executor conveys property under authority connected to a decedent's will and estate administration.

The statutory form in Real Property Law section 258 recites the executor's authority under the will and conveys the estate the testator had at death, plus any estate the executor has or has power to convey. It also contains the covenant that the executor has not done or suffered anything that encumbered the premises.

Real Property Law section 256 defines the effect of the statutory executor-or-trustee grant language concerning the testator's estate, the grantor's authority and appurtenances.

An executor's deed does not prove that every estate procedure was followed. The will, probate, letters, fiduciary power, court orders, debts, specific devise and estate record can affect authority.

What is a referee's deed in foreclosure?

A referee's deed conveys property after a court-authorized foreclosure sale. The statutory form identifies the referee, foreclosure action, mortgage, judgment and high bid, then grants and conveys the described premises.

The referee acts under the judgment, not as the former owner's personal warranty provider. The statutory referee form does not contain the five full title covenants or the covenant against grantor.

A buyer still needs the foreclosure judgment, sale terms, title record, taxes, liens, occupancy and other exceptions reviewed. “Referee's deed” identifies the source of authority and sale, not a government promise of flawless title or vacant possession.

What is a referee's deed in partition?

A partition referee's deed follows a court-ordered sale in an action dividing or selling co-owned property. The statutory form recites the partition action, judgment and high bid.

The referee conveys under the court's authority. The deed does not become a full-covenant warranty deed merely because a judge ordered the sale.

Review partition and business ownership for the difference between a co-owner's voluntary deed and a judicial partition sale.

What is a trustee's deed?

A trustee can convey real property when the trust, governing instrument and law give the trustee authority. The deed should identify the trustee's representative capacity and the trust-related source of authority.

Resist the urge to assume every document titled “trustee's deed” contains the same covenants. Read the actual deed. Real Property Law section 256 interprets specified executor-or-trustee language, while the applicable trust instrument and estate law determine authority.

A beneficiary's approval is not a substitute for the trustee's valid act when the trustee holds the power to convey.

What is the Lien Law section 13 covenant?

Many New York deeds contain a statement that the conveyance is subject to the trust-fund provisions of Lien Law section 13. This is not the same as the bargain-and-sale covenant against grantor or the five full title covenants.

Lien Law section 13(5) addresses a conveyance recorded after an improvement begins and before the period for filing a mechanics lien expires. It calls for the grantor to hold the consideration as a trust fund and apply it first to improvement costs. The statute says the grantee has no duty to oversee that application and exempts a deed given by a court-appointed referee solely to sell the property.

On the exam, classify the clauses separately:

• covenant against grantor: limited title covenant about the grantor's encumbering acts;
• section 13 trust-fund covenant: protection for improvement funds and lien priority;
• full-covenant deed: five broad title covenants.

Does a warranty deed eliminate the need for a title search?

No. A covenant provides a possible claim against the grantor after a covered breach. A title search attempts to identify ownership, liens, judgments, easements, restrictions and other recorded issues before the buyer closes.

A buyer ordinarily wants defects found and addressed before paying the price. The promise to respond later is not the same as receiving the expected title now.

The later title-search lesson covers abstracts, marketability and title policies in depth.

Is a deed covenant the same as title insurance?

No. A deed covenant is the grantor's promise. Title insurance is a separate insurance contract issued by a title insurer, with its own insured, amount, effective date, exclusions, exceptions, conditions and claims process.

The New York Department of Financial Services homeowner resources explain that title insurance protects owners and mortgage lenders against covered future claims arising from unknown title defects at the time of sale.

Use this comparison:

One can exist without the other. Neither label proves that every title issue is covered.

Does a deed form make title marketable?

No. Marketable title concerns whether the title is reasonably free from doubt and unacceptable litigation risk under the contract and law. A deed form concerns the instrument and grantor's covenants.

Examples:

• A full-covenant deed can be delivered while an undisclosed lien remains, creating a covenant problem.
• A bargain and sale deed without covenant can convey marketable title when the record is clean and the contract permits that form.
• A quitclaim deed can convey full ownership, but the grantee receives no statutory title covenants from the form.
• A referee's deed can convey the interest sold under the judgment, while separate title exceptions remain.

Keep form, title quality, contract duty and insurance coverage in separate mental boxes.

Worked example: choose the covenant, not the label

Owner A acquired a parcel in 2020. A 2015 unreleased judgment lien from an earlier owner remains in the title record. Owner A created no new lien. In 2026, A delivers a bargain and sale deed with covenant against grantor to Buyer B.

Work it through:

1. Deed form: bargain and sale with covenant.
2. Promise: A did not do or suffer anything that encumbered the premises.
3. Lien source: a prior owner's 2015 judgment.
4. Covenant result: the limited covenant does not become a full promise against every pre-A defect.
5. Other issues: the sales contract, title objections, marketability and title policy can still require the lien to be addressed.

Change the facts:

A borrowed money in 2023, granted a mortgage and failed to have it satisfied before delivery.

Now the encumbrance arose from A's own act and directly implicates the covenant against grantor.

Eight exam-style scenarios

Scenario 1: five covenants

The deed promises seizin and right to convey, quiet enjoyment, freedom from encumbrances, further assurance and warranty of title.

This is the New York deed with full covenants.

Scenario 2: grantor's own mortgage

A bargain and sale deed states that the grantor has not done or suffered anything to encumber the premises, but the grantor placed an unreleased mortgage on it.

The grantor's own mortgage raises the covenant-against-grantor issue.

Scenario 3: older defect

A title defect arose under a prior owner. The current grantor uses a bargain and sale deed with covenant against grantor.

The limited covenant does not expand into a full warranty against earlier owners' acts.

Scenario 4: quitclaim from sole owner

A sole fee-simple owner validly executes and delivers a quitclaim deed for the full parcel.

The deed can transfer full ownership. It supplies no statutory title covenants.

Scenario 5: quitclaim from cotenant

A 25-percent tenant in common executes a quitclaim deed purporting to transfer the parcel.

The deed can convey that grantor's 25-percent interest, not the other cotenants' interests.

Scenario 6: executor sale

An executor signs a deed under a probated will, but the file does not show whether the will authorizes the sale.

Identify the executor's deed, then verify fiduciary authority. The title alone does not supply missing power.

Scenario 7: foreclosure sale

A court-appointed referee conveys to the high bidder under a foreclosure judgment.

Use a referee's deed analysis. Do not add full title covenants that the statutory form does not contain.

Scenario 8: title policy

The grantor gives a full-covenant deed and the buyer also receives an owner's title policy.

The buyer has two different sources of potential protection: deed covenants from the grantor and policy coverage from the insurer.

Common misconceptions

Misconception 1: warranty deed means flawless title

It means the grantor makes stated covenants. A defect can exist and breach a covenant.

Misconception 2: bargain and sale means no ownership passed

The form conveys the grantor's estate and rights. The key distinction is whether the covenant against grantor appears.

Misconception 3: quitclaim deeds are invalid

Quitclaim is a lawful statutory form. It transfers the grantor's interest without title covenants.

Misconception 4: a quitclaim deed transfers only a small interest

It transfers whatever interest the grantor owns and describes. That can be full ownership, a partial share or no interest.

Misconception 5: covenant against grantor covers the whole chain

It focuses on what the named grantor did or suffered. It is narrower than the full-covenant form.

Misconception 6: executor and referee deeds promise good title

They identify authority-based transfers. Read the statutory covenants and the underlying court or estate record.

Misconception 7: title insurance is a deed covenant

Title insurance is a separate policy issued by an insurer. The deed covenant is the grantor's promise.

What should a salesperson verify and escalate?

Useful questions include:

• What deed form does the signed sales contract require?
• Does the draft say with or without covenant against grantor?
• Does the deed contain full covenants, limited covenant language or no title covenants?
• Who owns the property and what interest can each signer convey?
• Does an entity, trust, estate or court-appointed signer have authority?
• What title objections, liens, easements and restrictions appear?
• Which matters will be satisfied, excepted, insured or accepted at closing?
• Does the deed include the required Lien Law section 13 statement when applicable?
• What owner's and lender's title policies are proposed?
• Do the deed, contract, title report and closing statement describe the same transaction?

A salesperson should not choose the deed form, draft covenants, interpret an estate power, promise marketable title or explain policy coverage as legal advice. Gather facts and route the issue to the attorneys and title professionals.

Use the Legal Issues study guide to connect deed forms with title, liens and closing. Review the bundle of rights if the question asks what ownership interest can pass before it asks which deed carries it.

A four-step decision rule

1. Name the transferor. Owner, fiduciary or referee?
2. Name the form. Full covenant, bargain and sale, quitclaim, executor or referee?
3. Read the covenant. Five broad promises, grantor's-acts promise or no title covenant?
4. Separate the remaining issues. Validity, authority, title quality, contract duty, recording and insurance.

The exam answer usually turns on step 3. A real transaction requires all four.

Quick knowledge check

Question 1

Which New York deed form contains five broad title covenants?

A. Quitclaim deed
B. Referee's deed
C. Deed with full covenants
D. Bargain and sale deed without covenant

Answer: C. The statutory full-covenant form includes seizin and right to convey, quiet enjoyment, freedom from encumbrances, further assurance and warranty.

Question 2

What does the covenant against grantor promise?

A. No person has ever claimed the property
B. The grantor did not do or suffer anything that encumbered it
C. The title insurer covers every defect
D. The property has no zoning limits

Answer: B. It is a limited promise focused on matters attributable to that grantor.

Question 3

A grantor owns full fee-simple title and validly delivers a quitclaim deed for the parcel. What can pass?

A. No interest because quitclaim deeds are invalid
B. Only a life estate
C. The grantor's full interest, without title covenants
D. Title insurance coverage

Answer: C. A quitclaim deed can convey the grantor's full interest, but it does not add statutory title covenants.

Question 4

Which deed most directly identifies a court-authorized foreclosure sale?

A. Referee's deed in foreclosure
B. Executor's deed
C. Full-covenant deed
D. Quitclaim deed

Answer: A. The referee conveys under the foreclosure judgment and sale.

Question 5

How does an owner's title policy differ from a deed covenant?

A. The policy is a promise from the grantor
B. The covenant is issued by the county clerk
C. The policy is a separate insurance contract
D. There is no difference

Answer: C. A title insurer issues the policy under its terms. The grantor makes the deed covenant.

What should I memorize?

Use this ladder:

• full covenant: five broad title promises;
• bargain and sale with covenant: grantor's own encumbering acts;
• bargain and sale without covenant: no covenant against grantor;
• quitclaim: grantor's interest, if any, with no title covenants;
• executor: estate authority plus covenant against executor's acts in the statutory form;
• referee: court authority and no statutory title covenants.

Then remember:

Deed form measures promises, not the acreage, value or certainty of title.

Frequently asked questions

What is a warranty deed called in New York?

New York Real Property Law section 258 calls the statutory form a deed with full covenants. It is also described as a full-covenant and warranty deed.

What are the five New York deed covenants?

They are seizin and right to convey, quiet enjoyment, freedom from encumbrances, further assurance and warranty of title.

What is a bargain and sale deed with covenant?

It conveys the grantor's estate and adds the limited promise that the grantor did not do or suffer anything that encumbered the premises.

What is a bargain and sale deed without covenant?

It conveys the grantor's estate and rights without adding the statutory covenant against the grantor's encumbering acts.

Does a bargain and sale deed prove clear title?

No. The title record, contract and title examination determine what defects and obligations exist. The deed wording determines the grantor's covenant.

What does a quitclaim deed transfer in New York?

It transfers the grantor's described interest, if any, without statutory title covenants.

Can a quitclaim deed transfer full ownership?

Yes. If the grantor owns full title and validly conveys it, the quitclaim can transfer that full interest without promising that title is good.

Does a quitclaim deed remove a mortgage?

No. Changing ownership by deed does not independently satisfy or release a mortgage lien. The loan documents, lender rights and recorded satisfaction require separate analysis.

What does an executor's deed transfer?

It transfers the estate interest the executor has authority to convey under the will, estate law and any required court process.

Does a referee's deed include a warranty of title?

The statutory foreclosure and partition referee forms do not include the five full title covenants. They convey under the identified judgment and sale.

Is title insurance included in a warranty deed?

No. Title insurance is a separate policy issued by a title insurer. It is not created by the deed's warranty clause.

Which deed is best for a New York buyer?

There is no universal answer. The contract, parties, transaction, title condition, covenants and insurance determine the appropriate form. Attorneys select and prepare the deed.

Sources and verification notes

This article was checked against official New York sources available on August 27, 2026. It uses New York statutory names and avoids importing deed labels from other states. A deed's actual effect depends on the complete instrument, grantor's interest and authority, valid delivery, the title record, contract terms and governing judgment or estate documents. This is exam education, not a recommendation to use a particular deed.

Revision record: Initial source-reviewed draft completed August 27, 2026. It includes the current statutory short forms, covenant definitions, Lien Law section 13 trust-fund provision and 2025 quitclaim authority. Publication remains disabled until a real author and qualified reviewer are assigned.

1. New York State Department of State, Real Estate Salesperson 77-Hour Curriculum. Subject 3 deed forms and covenants.
2. New York Real Property Law section 258. Statutory full-covenant, bargain and sale, quitclaim, executor and referee forms.
3. New York Real Property Law section 253. Legal construction of the five full covenants and covenant against grantor.
4. New York Real Property Law section 245. Estate passed and limit on conveying more than the grantor possesses.
5. New York Real Property Law section 255. Construction of appurtenances and all estate and rights of grantor.
6. New York Real Property Law section 256. Executor-or-trustee grant language and estate conveyed.
7. New York Lien Law section 13. Improvement trust-fund covenant and referee exception.
8. Prendergast v Swiencicky, 2020 NY Slip Op 02686. Covenant against encumbrances and breach at delivery.
9. Margolin v Gatto, 2010 NY Slip Op 01626. Quitclaim conveyed no interest after the grantors' interest had already passed.
10. Murphy v Murphy, 2025 NY Slip Op 51806(U). Valid quitclaim conveyed only the cotenant's owned percentage.
11. New York Department of Financial Services, Homeowner and Tenant Resources. Title search and title-insurance overview.
12. NexBank, SSB v Soffer, 2019 NY Slip Op 04341. Measure of damages for breach of the covenant against encumbrances.

Continue with legal descriptions to learn how metes and bounds, monuments, filed maps, lot and block references and surveys identify the land each deed conveys.