A deed is an instrument by which the person signing (the "grantor") is transferring to the recipient (the "grantee") an interest in real property. A warranty deed is one containing covenants of title, as opposed to a quitclaim deed, which does not contain any warranties of title but merely conveys to the purchaser whatever title, if any, the grantors has.

There are six covenants contained in a warranty deed, three of which are present covenants, and three of which are covenants which run with the title to the land being conveyed. The three present covenants are (i) a covenant of seisin (or possession); (ii) a covenant of right to convey; and (iii) a covenant against encumbrances. The future covenants which run with the title to land are (i) a covenant of quiet enjoyment, (ii) a covenant of warranty; and (iii) a covenant of assurances. A person obtaining title by warranty deed accordingly receives assurances that the grantor owns the property and has a right to convey it without any liens or encumbrances. The future covenants in a warranty deed pass to subsequent owners of the property, and each grantor in the chain of title will be liable to each future purchaser on all future warranties unless the grantor limits those warranties.

A general warranty deed makes the foregoing warranties to the grantor as against the claims of all persons whomsoever (including any predecessors in title), while a limited warranty deed limits the foregoing warranties to claims of persons holding by, through, or under the grantor, and does not warrant against an outstanding better title or encumbrance prior to the grantor's ownership of the property. A warranty deed, whether general or limited, carries with it the rights and interests after acquired by the grantor and also includes the right to sue on prior warranties. Both types of warranty deeds convey marketable title, and the grantee of the property is able to further convey marketable title to the property to subsequent grantees.

A quitclaim deed makes no warranties whatsoever and merely indicates that if the grantor has any interest in the property, such interest is being passed to the grantee. Like warranty deeds, a quitclaim deed can effectively pass marketable title to property if properly drawn and if the grantor of the property actually owns marketable title, although a quitclaim deed does not pass any of the grantor's after-acquired interests. Unlike a warranty deed, where grantors are making certain warranties of title, a quitclaim deed makes no warranties and only gives the grantee the interest that the grantor has, if any.

For example, if I signed a quitclaim deed giving to you my interest in the Forsyth County Courthouse, you actually would be receiving nothing and I would not be transferring you anything, since I do not hold title to the Forsyth County Courthouse. Quitclaim deeds customarily are used to confirm that the grantor is not making any claims to a certain piece of real property and to remove any doubts or arguments that the grantor might make, no matter how remote those claims might be.