No Mandatory Warranty Covenant
Some states require certain covenants (promises) in property deeds. This statute takes a different approach. No person is obligated to insert a covenant of warranty into a conveyance of real estate. At the same time, neither party is restricted from including any clause they consider proper.
No person shall be obliged to insert the covenant of warranty, or restrained from inserting any clause in a conveyance which is deemed proper and advisable by the purchaser and seller, and forms not contravening laws of the land shall not be invalidated.
A.R.S. § 33-434This honors freedom of contract in real estate transactions. As long as the deed does not violate existing law, the parties can shape the terms to fit their situation.
What This Means in Practice
Understanding this statute helps explain why different types of deeds exist. A general warranty deed includes broad promises about clear title. A special warranty deed limits those promises to the period the grantor owned the property. A quitclaim deed makes no promises at all.
In estate planning, this flexibility matters. When real estate moves into or out of a trust, the type of deed used affects what protections the recipient receives. A trustee transferring property to a beneficiary might use a special warranty deed. A family member gifting property might use a quitclaim deed.
The statute confirms that the law respects whatever form the parties choose, as long as it stays within legal bounds. Buyers and sellers can negotiate covenants that fit their specific situation, whether that involves a full warranty, a limited warranty, or no warranty at all.
For families handling property transfers as part of an estate plan, working with an attorney to choose the right deed type helps protect everyone's interests. The freedom this statute provides is valuable, but it also means the parties are responsible for understanding what protections they are or are not receiving.