What does the covenant of freehold warranty guarantee the buyer?

The covenant of freehold warranty specifically provides a buyer with assurance against any claims or challenges to the title of the property. This means that if someone else asserts ownership or claims rights over the property after the sale, the seller is legally responsible for defending the buyer against such claims. This warranty ensures that the buyer is receiving a clear title to the property, free from any undisclosed encumbrances or claims.

This is vital for buyers, as it reduces their risk and offers peace of mind, knowing that they are legally protected if any disputes arise regarding property ownership. It reinforces the notion of title security in real estate transactions, which is essential for maintaining trust in property dealings. Other options, such as promises related to future development, payment of property taxes, or home warranty services, do not pertain to the covenant of freehold warranty and do not provide the same level of protection regarding the title itself.