Understanding Special Warranty Deeds: A Comprehensive Guide
Learn everything about special warranty deeds, their legal implications, and how they protect property transactions.
What is a Special Warranty Deed?
A special warranty deed is a legal document that transfers property ownership with specific guarantees from the seller (grantor) to the buyer (grantee). Unlike a general warranty deed, it only warrants against issues that occurred during the grantor's ownership period.
Limited Protection
Only covers the period when the grantor owned the property
Common Usage
Frequently used in commercial real estate transactions and corporate property transfers
Legal Standing
Recognized in all 50 states with varying statutory requirements
Essential Components of a Special Warranty Deed
Grantor Information
- Legal name of the seller
- Marital status if relevant
- Current address
Grantee Information
- Legal name of the buyer
- Intended ownership form
- Future address (property address)
Property Description
- Legal description
- Property boundaries
- Parcel numbers
Warranty Language
- Specific warranty clause
- Title covenants
- Limitation period
Recording Fee Calculator
Deed Type Comparison
| Feature | Special Warranty Deed | General Warranty Deed | Quitclaim Deed |
|---|---|---|---|
| Title Protection | Limited to grantor's ownership period | Full chain of title | No protection |
| Common Usage | Commercial properties, corporate transfers | Residential sales | Family transfers, divorce settlements |
| Risk Level | Moderate | Low | High |
| Cost | Moderate | Higher | Lower |
Frequently Asked Questions
A special warranty deed includes two main covenants:
- The grantor warrants they have received the title to the property
- The property hasn't been encumbered during their ownership, except as noted in the deed
A special warranty deed differs primarily in the scope of its warranties:
- Special Warranty: Covers only the grantor's ownership period
- General Warranty: Covers entire property history
- Quitclaim: Provides no warranties at all
Special warranty deeds are most appropriate in these situations:
- Commercial real estate transactions
- Corporate property transfers
- Properties held for short periods
- Bank-owned property sales