A Special Warranty deed is a type of deed where the grantor (person who owns the property) guarantees that the title is clear during the period of his ownership of the property only. The person selling the house does not guarantee against defects in the title that may have existed before his ownership.
A Special Warranty deed generally uses the language "by, through or under the grantor but not otherwise."
A Special Warranty deed guarantees that the grantor has done nothing (by act or omission) during the time he held title to the property which has or may impair the future owner’s title in the property.
Although a General Warranty deed affords the most protection, a Special Warranty deed provides more protection than a Quit Claim deed, below.
A Quit Claim deed is a type of deed where the grantor transfers all interests he has in a property with no warranties or promises about the title to the grantee (new owner).
- It is often used to clear up defects in a title
- Transfers property between people well-known to each other, such as family members or divorcing spouses
- Buyers assumes all the risks
Since purchasing real estate is a significant investment, contacting a real estate attorney is useful in providing you with information regarding the laws in your state and may advise you of any further assurances, such as examining a title insurance policy, which may provide further protection.