Special Warranty Deed

Create a Special Warranty Deed

Grantor Name

In this field, write the full legal name of the Grantor, who is the person or entity giving the property or rights. Use the format: First Name, Middle Initial (if any), Last Name. Accurate information is important because it helps ensure the legal transfer is valid and recognized.

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What is a Special Warranty Deed?

A Special Warranty Deed is a legal document that plays a critical role in real estate transactions, providing a middle ground between the buyer's need for protection and the seller's desire to limit future liability. Unlike a General Warranty Deed, which guarantees clear title from all previous owners, this deed only covers the period during which the current seller held the property. It assures the buyer that the seller has not encumbered the property during their ownership but does not guarantee against claims or liens from before that time. This specificity makes it particularly useful for sellers who acquired the property through foreclosure, as it allows them to transfer ownership without assuming responsibility for past discrepancies.

Key Features

✓Offers a warranty limited to the period of the current seller's ownership, ensuring they have made no encumbrances on the property.
✓Suits properties acquired through foreclosure, where the seller may not have full knowledge of historical title issues.
✓Reduces the seller's liability compared to a General Warranty Deed by excluding guarantees against claims predating their ownership.
✓Provides buyers with some level of protection and recourse against certain defects in title.
✓Streamlines transactions involving commercial properties or investment real estate.
✓Favored in specific geographical regions or under certain legal conditions where full warranties are not customary.

Important Provisions

  • Grantor and Grantee information: Identifies who is transferring and receiving property rights.
  • Description of Property: Precisely delineates what is being transferred, including legal descriptions and parcel numbers where applicable.
  • Warranty Clause: Specifically outlines the extent of warranty being provided by the grantor regarding previous encumbrances or liens.
  • Signatures and Notarization: Ensures legality and enforceability through formal execution and authentication processes.

Pros and Cons

Pros

  • +Protects buyers against any title defects or liens created during the seller's tenure.
  • +Limits sellers' exposure to future legal action related to property title issues predating their ownership.
  • +Facilitates smoother transactions for properties with complex historical titles or foreclosure backgrounds.
  • +Offers more security than a Quitclaim Deed by including at least some warranty coverage.
  • +Can be more quickly executed than a General Warranty Deed, as it requires less comprehensive research into the property's history.

Cons

  • -Does not provide complete protection against all possible title issues, only those arising during specific ownership periods.
  • -May necessitate additional title insurance for buyers seeking full coverage against potential historical claims.
  • -Could potentially limit the pool of interested buyers who prefer the broader assurances of a General Warranty Deed.

Common Uses

  • Transferring ownership of commercial real estate where a full history warranty is not necessary or possible.
  • Selling residential properties that have been previously foreclosed on.
  • Conveying property in states or regions where this type of deed is standard practice.
  • Real estate transactions involving investment properties or entities as sellers.
  • Refinancing scenarios where an existing owner wants to add or remove someone from the deed.

Frequently Asked Questions

The main difference lies in their scope of protection. A General Warranty Deed offers broad assurances against all title defects stretching back through all past owners, while its special counterpart limits guarantees to defects occurring during just the current owner's period.
Purchasing a house with such a deed can be suitable if you're aware of its limitations. It provides some level of protection but doesn't cover historical title issues. Buyers often complement it with title insurance for broader coverage.
In this context, an encumbrance refers to any claim, lien, or liability attached to and diminishing the value of the property, such as mortgages, easements, or unpaid taxes incurred during the seller’s ownership.
Disputes typically involve legal proceedings where proof must be presented regarding when an issue with the title arose. If it occurred during the grantor’s period of ownership covered by this deed’s warranties, then they might be held liable.

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About this document

A Special Warranty Deed conveys property with limited warranties, protecting the buyer only against claims during the seller's ownership period.

Create a Special Warranty Deed

This document is designed to comply with the laws of all 50 states.

Updated Aug 04, 2025
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Legal Notice: Comments are personal opinions and do not constitute legal advice. Always consult a qualified attorney for matters specific to your situation.