What Is a Special Warranty Deed?
A special warranty deed conveys real property with limited warranties. The grantor warrants that they received title and that the property was not encumbered during their ownership. However, they do not warrant against defects that existed prior to their ownership.
How It Differs from a General Warranty Deed
Under a general warranty deed, the grantor warrants against all defects in the chain of title, regardless of when they occurred. A special warranty deed limits that warranty to the grantor’s period of ownership.
Common Uses
Special warranty deeds are often used by corporations, trustees and governmental entities who do not want to assume liability for issues prior to their ownership. They are also common in some states for regular transactions. Buyers should consider title insurance to protect against earlier defects.
Official source links
- CFPB Homeownership Guidance
Mortgage, closing, and ownership fundamentals from a federal consumer regulator.
- HUD Homebuying Topics
Federal guidance on buying, financing, and avoiding common purchase mistakes.
- USA.gov State Government Directory
Direct path to official state and local government websites.