What Is the Covenant Against Encumbrances?
When a buyer purchases real estate in Florida using a General Warranty Deed, the seller is not just handing over the keys; they are making five specific, legally binding promises (covenants of title) about the safety of the transaction.
One of the most important is the covenant against encumbrances. By signing the deed, the seller explicitly guarantees that the property is 100% free of any hidden financial burdens or physical restrictions (encumbrances). The seller promises that there are no secret mortgages, unpaid contractor liens, IRS tax debts, or unrecorded easements attached to the land.
Breach of the Covenant
This covenant protects the buyer after the closing. Suppose a buyer purchases a home, and six months later, a roofing contractor knocks on the door demanding $15,000 for a roof they installed for the previous owner. The contractor has a valid lien on the house.
Because the seller signed a deed containing the covenant against encumbrances, the seller is in breach of contract. The buyer can immediately sue the seller, forcing the seller to pay the $15,000 roofing bill. If the buyer also purchased title insurance, the title company will usually pay the roofer and then sue the seller themselves to recover the money.
Permitted Exceptions
A property is rarely completely free of all encumbrances. Almost every house is subject to local zoning laws, utility easements (allowing the power company to run lines), and neighborhood HOA rules.
To avoid being sued, the seller must explicitly list these "permitted exceptions" in the deed. The covenant essentially says: "I promise there are no encumbrances on this land, except for the utility easement and the HOA rules we already discussed."
Related Terms
- Warranty Deed — The type of deed that contains this powerful covenant
- Covenant of Seisin — Another key promise guaranteeing the seller actually owns the land
- Encumbrance — The overarching term for any burden or lien on the title
Barnes Walker Title Defense
Barnes Walker's attorneys represent Florida homebuyers who discover hidden liens after closing, aggressively pursuing former sellers for breaching the covenant against encumbrances to ensure our clients do not pay for debts they did not create. Request a legal inquiry for assistance.
Florida Law Reference
Fla. Stat. Ch. 720
The Florida Homeowners' Association Act governs HOA powers, member rights, assessment collection, and enforcement of deed restrictions.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC