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Why would you use a special warranty deed?
A special warranty deed provides assurance that the property's seller owns the property in question and has not faced any title issues during this ownership. A special warranty deed guarantees that the buyer won't face any legal action or title issues as a result of the actions of the property's previous owner.
When would you use a special warranty deed?
Special Warranty Deed Special warranty deeds are often used by builders because they only owned the property for a short period of time during construction and don't want to make promises as to the prior owners.
Should I buy a house with a special warranty deed?
The best way to protect yourself as a buyer is to buy title insurance when you purchase the property. 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.
What is the difference between a statutory warranty deed and a special warranty deed?
A statutory warranty deed is different from a warranty deed because it is a shorter form made available through your state's statutes, and it may not outright list the promise that the title is guaranteed to be clear. Instead, because it is a statutory form, this guarantee is implied and is still legally enforceable.
What is the difference between a warranty deed and a deed?
They serve different purposes and are signed by different parties. The warranty deed transfers the property's ownership from the current owner to the new buyer, while the deed of trust ensures the lender has interest in the property in the event a buyer defaults on the loan.
What does a special warranty deed do?
A special warranty deed is a deed to real estate where the seller of the property known as the grantorwarrants only against anything that occurred during their physical ownership. In other words, the granter doesn't guarantee against any defects in clear title that existed before they took possession of the property.
What is the difference between a special warranty deed and a quit claim deed?
A warranty deed contains a guarantee that the granter has legal title and rights to the real estate. A quitclaim deed offers little to no protection to the grantee. Warranty deeds ensure that the granter has the right to sell the property, and guarantees that there are no liens or encumbrances against the land.
What is the difference between a limited warranty deed and a warranty deed?
While a general warranty deed guarantees against all encumbrances and claims to title, a limited warranty deed protects only against claims made after the seller obtained title to the property. A limited warranty deed therefore makes no guarantees about anything that occurred before the seller owned the property.
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