The Definition of Special Warranty Deed

A deed is a written, legal document that conveys, or assigns, ownership of real property. There are three common types of deeds, the least protective of which is the quitclaim deed, the most protective is the general warranty deed, and the special warranty deed combines aspects of both.

Overview

A special warranty deed is the most flexible form of warranty deed. This type of deed varies in form from state to state and they are typically used by people who do not have a comprehensive knowledge of the property's history. This is why most transactions involving special warranty deeds take place between a buyer and a person who has recently been put in charge of the property, such as a trustee.

Guarantees

The special warranty deed includes three basic guarantees:

The Covenant of Seisin - This guarantees that the owner is in possession of a clean title.

The Covenant of the Right to Convey - The seller has the legal right to transfer ownership to the buyer.

The Covenant Against Encumbrances - This guarantee states that the seller has done nothing to the property to lessen its value.

Comparison to other Deeds

The quitclaim deed is the least protective deed in that it comes with no guarantees as to the state of the property's title, which means that the buyer has no guarantee against encumbrances. The general warranty deed separates from the special warranty deed in that it is usually found in transactions in which the sellers are fully aware of the property's history, and are so confident in the validity of the title that they are willing to protect the buyer from any who claim rights to the title and are willing to repay any costs incurred by unintentional encumbrances.