An original warranty deed for property has a restrictive covenant in it which reads: " It is agreed between the parties hereto that the above property shall not be used for any commerical purposes whatsoever and is limited to residential use only by the parties of the second part, their heirs or assigns".

If an attorney, real-estate person or whoever, constructs another deed for a subsequent buyer, for the same property and does not include the covenant listed above, is this proper or legal? Would the latter deed supersede the original deed?

Also, on a deed, near the bottom of the land description, I have seen the following statement in part:
"Warrants that the title is good, indefeasible in fee simple and free and clear of encumrances except EASEMENTS OF RECORD". What does easements of record mean?

Thanks

Would you explain what one should do when buying a piece of property with a warranty deed. Should we do a title search? If it is a commercial piece of property does it make a differenc and should we involve a lawyer or do it ourself?

You should absolutely have a title search performed, regardless of whether the property is commercial or residential. You can do it yourself or have it handled by an attorney or title insurance company but I strongly recommend having it done by a professional. This probably represents a substantial purchase for you and it doesn't make sense to cut corners.