With a special deed or special warranty deed, the grantor only warrants that they own the property and that there are no title defects during the time the grantor owned the property. The special deed or limited warranty deed gives the grantee greater protection than a quitclaim deed and less protection than a full or general warranty deed.
A special warranty deed is used when conveying an interest in real property where it is the grantor's intent to assert that the grantor has title and there are no outstanding claims or liens during the time the grantor owned the property. It is generally used in the conveyance of commercial real estate, but can be used in a residential transaction as well. A general warranty deed is typically used in the conveyance of residential real estate.
What is a warranty deed? The warranty deed contains the following provisions:
There are two types of warranty deeds. A general warranty deed and a special warranty deed or limited warranty deed.
A general warranty deed conveys certain covenants or warranties which the grantor is bound by, whether expressly stated or implied by statutory covenant.
These warranties include:
The warranties apply to the time that the grantor owns the property and back to the property's origin. A general warranty deed gives the buyer the greatest protection.
It is important to hire an estate planning attorney when you are buying or transferring real estate. Estate tax laws are complicated and an estate planning attorney can advise you of the best ways to avoid or minimize estate taxes with regard to real property ownership.