What is the purpose of a covenant of further assurance in a property deed?

The purpose of a covenant of further assurance in a property deed is indeed to promise future actions needed to correct title defects. This covenant typically indicates that the grantor agrees to take necessary steps to perfect the title and address any issues that might arise, thereby providing additional assurance to the grantee.

This is important because, while a deed conveys ownership, the grantor may be aware of potential defects or issues that could impact the title in the future. By including this covenant, the grantor demonstrates a commitment to resolve such issues, which adds a layer of protection for the grantee and can prevent future disputes regarding ownership or title validity.

The other options do not accurately reflect the nature of a covenant of further assurance. For instance, while ensuring the title is free of all encumbrances is vital in property transactions, the specific role of the covenant is not to guarantee a perfect title from the outset. Similarly, transferring ownership and pledging the property as collateral are different legal concepts unrelated to this particular type of covenant.