What is a covenant against encumbrances?

A covenant against encumbrances is a provision in a real estate contract or deed in which the seller guarantees that the property is free from any liens, claims, or other legal liabilities that could hinder its use or transfer. This means the seller asserts that there are no outstanding debts or obligations tied to the property, ensuring the buyer receives clear title. If an encumbrance is later discovered, the seller may be held liable for breaches of this covenant.