Special Warranty Deed

Special Warranty Deed

A Special Warranty Deed is a type of legal document used in real estate transactions that conveys ownership of property from one party to another while providing certain assurances regarding the title. Unlike a General Warranty Deed, which guarantees the title against all defects, a Special Warranty Deed only warrants the property against defects that arose during the period of the grantor’s ownership.

In a Special Warranty Deed, the grantor makes two primary assurances:

1. The grantor has good title to the property and the right to convey it.

2. The property has not been encumbered or affected by any claims or issues during the time the grantor owned it, except as disclosed in the deed.

However, it does not protect the grantee (the buyer) against defects that may have existed before the grantor acquired the property. This limited protection can make a Special Warranty Deed a less secure option than a General Warranty Deed, as it offers less assurance regarding the full history of the title.

Example: If a homeowner sells their property using a Special Warranty Deed, they would be responsible for defending against any claims or liens that arose while they owned the property. However, if there were a prior claim against the title that occurred before the homeowner purchased the property, the new owner would not have recourse against the seller in that case.

Overall, a Special Warranty Deed is often used in commercial transactions or situations where the seller wants to limit their liability regarding the title. It is essential for buyers to understand the implications of accepting a Special Warranty Deed, as it impacts their legal rights to the property in the event of title disputes.