What is a Special Warranty Deed?

A Special Warranty Deed is a legal document that provides a limited warranty of title from the seller to the buyer. This type of deed guarantees that the seller has not incurred any title defects during their period of ownership. The seller warrants that they will defend the buyer against any claims that arose only while the seller owned the property, but it does not protect against any defects that may have existed prior to the seller's ownership.

This distinction is crucial because the protection offered by a Special Warranty Deed is narrower than that of a General Warranty Deed, which covers the property’s entire history, assuring the buyer against all defects, regardless of when they arose. A Special Warranty Deed is often used in transactions where the seller may have limited knowledge of the property's history, and offers less assurance to the buyer compared to other types of deeds.

The other choices do not accurately reflect the nature and function of a Special Warranty Deed. For instance, a deed that guarantees against all defects would describe a General Warranty Deed, while a deed with no warranty provisions would pertain to a Quitclaim Deed. Limitations to commercial properties specifically are not inherent to the definition of a Special Warranty Deed, as this type of deed can be used in residential transactions as