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Your Name. Your Email. If Joaquin has owned his home since June 11, , and transfers it to Mae with a special warranty deed, he is promising that from June 11, , until the date of sale, there are no claims against the title. He makes no promises about the time period before that date, though, so Mae is buying or accepting the property knowing that if there are claims against the title before June 11, , Joaquin is not responsible for them and Mae will have to handle them on her own.
The defining component of a special warranty deed is that it states there are no claims against the title during the time period when the grantor owned it. By comparison:. A special warranty deed is common when a house has been foreclosed on by a bank because the previous owner did not pay their mortgage. The bank forecloses on the property and then sells it to a new buyer. The special warranty deed that the bank provides to the new buyer provides no protection for the period of time before the bank took ownership of the property.
When a buyer purchases property under a special warranty deed, there is the possibility that a prior creditor or owner could make a claim against the property. The best way to protect yourself as a buyer is to buy title insurance when you purchase the property. The title insurance company will research the title to ensure it is clear and then provide insurance so that you have protection should there ever be an old claim that is brought against your title.
A special warranty deed provides the buyer with some guarantees about title, but it does not offer complete protection. However, these types of deeds can be acceptable if other protections are put in place.
You can find the right form to use by searching online for "special warranty deed" and your state's name. If you want help in creating a special warranty deed or any other type of deed, you can use an online services provider to help ensure that everything is completed and filed properly. Contents 3 min read. Brette Sember, J. Common examples of defects include liens, encumbrances, or judgments against the title. A defect can also occur if a deed transferring the property is improperly executed or recorded.
What this means for a potential buyer is that the seller will not protect the buyer should anyone allege a defect in the title occurring before the seller had possession. The seller only promises to defend against defects that may have occurred while he or she owned the property.
The next major deed in Texas is a deed without warranty or warranties. This type of deed is pretty self-explanatory—it is a conveyance of real property without any warranties. Grantees should only accept this type of deed as a last resort.
However, this deed is commonly used to clear up past title problems and can nevertheless be effective in transferring ownership.
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