What Is a Special Warranty Deed?
A Special Warranty Deed is a type of Deed used for transferring ownership or title of real estate, where the seller, known as the grantor, warrants that they own and can sell the property without debts or encumbrances. It is worth noting that the name of this document varies in different states — it may also be called a Limited Warranty Deed, Grant Deed, or Covenant Deed.
You can download a customizable Special Warranty Deed form below to guarantee your buyer (or "grantee"), that your title is clear and no ownership claims, outstanding liens, mortgages, or encumbrances on the real property were incurred while you held title to it. The grantor, however, does not warrant against any defects that existed before they physically owned the real estate.
What Is a Special Warranty Deed Used for?
While Special Warranty Deeds are mostly used for commercial property transactions, they are a variation of the General Warranty Deed, which is the instrument generally used for residential property transactions and the preferred type in the United States. The main difference between these two documents is the timeframe of protection given to title ownership because General Warranty Deeds cover the entire history of the property.
There is another document to convey a title to real property that is called Quit Claim Deed. These are usually drafted and signed between family members or parties who know each other, as they are Deeds that do not offer buyer protection. Quit Claim Deeds may also be used to correct an error on the title, or when there is no money involved in the transaction.