Covenant Deed from Fannie Mae?

[Dan Madden]

I just received the title work for a cottage I'm purchasing owned by Fannie Mae.  The cottage is located in Northern Michigan.  The Schedule B-1 requirements include this clause:

7.  Covenant Deed from recited owner to recited purchaser.

Ok - expected a warranty deed so I had to Google covenant deed.  I learned this type of deed is one of the 3 types that exist in Michigan.  What I've learned I did not like!  Who would?  The PA gives me 5 days to object, which I have no problem doing.  Wondering what other more experienced Fannie Mae buyers would recommend. 

In particular this information I googled has me somewhat concerned:

http://www.milawyers.net/60.question

Especially the part about the survey.  Thought about including a seller paid survey included in the offer but agent said they don't pay for anything.  So I walked the property lines as best I could with a measuring wheel.  It's good size - 1.67 acres, I'm 99% sure there were no encroachments.

The B-II Requirements includes a clause:  "Any encroachment, encumbrance, violation or adverse circumstance affecting the Title including discrepancies, conflicts in boundary lines, shortage in area, or any other facts that would be disclosed by an accurate and complete land survey of the land, and are not shown in the Public Records."

Will FM bend and offer a warranty deed?  Will they in fact pay for a survey?  I'm not opposed paying for it (the place is a huge bargain). 

 Any thoughts or suggestions are much appreciated.