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What is a Special Warranty Deed and Why It Matters in Real Estate
Definition & Meaning
A special warranty deed is a legal document used in real estate transactions. In this deed, the seller, known as the grantor, promises to defend the title against any claims made by themselves or anyone who acquired rights through them. However, the grantor does not guarantee that the title is free from defects that existed before their ownership of the property. This means that if there are issues with the title that arose prior to the grantor's ownership, the grantor is not responsible for those defects.
Table of content
Legal Use & context
Special warranty deeds are commonly used in real estate transactions, particularly when a property is sold by a bank or another entity that has taken ownership through foreclosure. This type of deed is relevant in civil law, especially in property law. Users may handle the creation of a special warranty deed themselves using legal templates available from resources like US Legal Forms, which are drafted by qualified attorneys.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A bank sells a foreclosed property using a special warranty deed. The bank guarantees that it has not created any defects in the title during its ownership, but it does not cover any issues that existed before it took possession of the property.
Example 2: A homeowner sells their property and uses a special warranty deed. If a neighbor claims an easement that existed before the homeowner bought the property, the homeowner is not responsible for resolving that claim. (hypothetical example)
State-by-state differences
State
Special Warranty Deed Use
California
Commonly used in residential transactions.
Texas
Often used for property sales by banks.
Florida
Used in both residential and commercial transactions.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Common misunderstandings
What to do if this term applies to you
If you are involved in a real estate transaction that requires a special warranty deed, consider using a template from US Legal Forms to ensure it is properly drafted. If you have concerns about the title or need legal advice, it may be wise to consult a real estate attorney.
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A general warranty deed provides full protection against all title defects, while a special warranty deed only covers issues that arose during the grantor's ownership.
Yes, you can use legal templates to create a special warranty deed, but it's advisable to consult a legal professional for complex situations.
If a claim arises due to issues that occurred during the previous owner's ownership, the grantor may be responsible for addressing it, but not for pre-existing issues.