Robert purchased a home in Pontiac using a general warranty deed. Ten years later, a title search reveals that a prior owner (before Robert's seller ever owned the property) had a judgment lien that was never satisfied and still encumbers the title. Under the covenant of general warranty in Robert's deed, which of the following BEST describes Robert's legal recourse?

Correct Answer

B) Robert can seek damages from his immediate seller under the general warranty deed covenants

Under a general warranty deed, the grantor warrants title against ALL lawful claims and demands, including those arising BEFORE the grantor's period of ownership. This is the defining feature that distinguishes a general warranty deed from a special warranty deed. Because Robert's seller conveyed title by general warranty deed, Robert can seek damages or indemnification from his immediate seller (the grantor) for the judgment lien that predates the seller's ownership. The seller, in turn, may have recourse against their own grantor under a chain of general warranty covenants running with the title.