What does a covenant of warranty assure the grantee in a property transaction?

A covenant of warranty is a promise made by the grantor to the grantee regarding the title of the property being transferred. Specifically, when this covenant is in place, it assures the grantee that the grantor will defend the title against any lawful claims or challenges that might arise. This means that if someone else claims ownership or a legal right to the property, the grantor is obliged to provide support and defend the grantee's title to ensure their possession is secure.

This protection is vital for the grantee, as it means they can trust that their ownership is backed by legal support from the grantor in case of disputes over the property title. The grantor's commitment under this covenant ensures that the grantee can enjoy the benefits of owning the property without fear of unexpected claims that could jeopardize their ownership.

The other options do not encapsulate the essence of what a covenant of warranty entails. While the grantor may hold title to the property and may have clear title, these aspects are not guaranteed under warranty covenants. The crucial component is the promise to defend against lawful claims, which directly relates to the grantee's security and assurance of ownership.