Final answer:
The clause or covenant in a deed confirming that the grantor owns the property and has the right to convey it is known as the warranty of title. It differs from restrictive covenants, which dictate land use.
Step-by-step explanation:
The clause in a deed that states the grantor owns the property and has the right to convey it is known as the warranty of title. This covenant ensures that the grantor legally holds the title and is in a position to transfer ownership to the grantee. It protects the buyer from future claims against the property.
This is distinct from restrictive covenants, which are conditions placed within a deed to dictate the use of the land and may include prohibitions on certain activities or dictate certain requirements, like minimum house sizes or certain aesthetic conditions. In essence, while restrictions control use, the warranty of title confirms ownership and the legal right to sell the property.