What does a Special Warranty Deed guarantee?

A Special Warranty Deed provides a limited guarantee regarding the title of the property. Specifically, it assures the buyer that the grantor (the seller) holds the title to the property and has not done anything to impair the title during the time they owned it. This means that the grantor only guarantees that there are no defects in the title that arose during their period of ownership, offering protection against any claims or issues that may have occurred while they were in possession of the property.

This type of deed does not extend the warranty to cover any defects that may have existed prior to the grantor's ownership, which is a significant distinction compared to general warranty deeds that provide broader protection against all defects in the title, regardless of when they occurred. Therefore, the correct understanding of a Special Warranty Deed is its specific limitation regarding the timeframe of title protection, aligning perfectly with the guarantee provided during the grantor's ownership.