What is a special warranty deed? When are special warranty deeds are used? How special warranty deed differs from a general deed?
In this article, we are going to discuss the above queries in detail. A special warranty deed is actually a legal document that transfers ownership of real property from one individual to another. This deed is also known as a limited warranty deed which is a variation of the general warranty deed.
What is a Special Warranty Deed?
A special warranty deed is a deed to real estate where the merchant of the property—known as the grantor—assures only against anything that happened during their physical control.
On the other hand, this deed is mostly used with commercial property transactions. With this deed, the warranty language is changed to limit the time period of the seller’s warranty.
Thus, in a more specific term, a special warranty deed is one in which the grantor is only ensuring that there are no unusual liens or claims against the real estate resulting from their ownership.
When are Special Warranty Deeds are Used?
A special warranty deed is simple when a house has been seized on by a bank as the former owner did not pay their mortgage. This can be utilized in 3 types of transactions and these are discussed below in detail.
If you are purchasing a foreclosure then you need to do some important things such as buying paying back taxes to eliminate the old ones from the property.
Thus, if properties are seized upon for any speculation, the authorities or investors selling those assets will commonly only guarantee that no new rights have been performed against the business since they took ownership.
ii). Commercial Property Transactions
A special warranty deed is often given if the sale of assets is used in business. For example, if Apple sells a property to Microsoft then it is called a commercial property transaction.
Moreover, keep in mind that commercial property transactions take place between companies or firms.
iii). Estate Transactions
In this transaction, the individual is responsible for administrating the estate has nothing attesting to the past of the property prior.
At the same time, the special warranty would include the fact that the seller didn’t have any title problems.
How Special Warranty Deed Differs from a General Deed?
The definition of a special warranty deed is already described above. Now, what is a general warranty deed? A general warranty deed is a document used in a property that presents the greatest amount of security to the buyer of the property.
So, how a special warranty deed is different from a general warranty deed? A general warranty deed guarantees that there are no title errors during any time period.
The Bottom Line
A special warranty deed offers a level of protection to the buyer and this is very helpful in the long run. Hence, this is all about special warranty deeds and if you are willing to know more, you can refer to this website.