What are the limitations of a special warranty deed?

What are the limitations of a special warranty deed?

Special warranty deeds do not protect against any mistakes in a free-and-clear title that may exist before the seller’s ownership. Thus, the grantor of a special warranty deed is only liable for debts, problems, or other encumbrances to the title that they caused or that happened during their ownership of the property.

What is special warranty deed in Texas?

A Texas special warranty deed conveying title and interests of the grantor in the real property subject to limited warranties from the grantor. This Standard Document can be used for commercial and residential real estate transactions.

What do you need to know about special warranty deed?

To qualify as a special warranty deed, it must also say that: The grantor is the legal owner of the property and has the legal right to transfer the property. There are no outstanding claims against the property by any creditor or anyone else that were instituted during the grantor’s ownership period.

Is it illegal to use the word warranty in a deed?

For example, Michigan law makes it a crime to use the word “warranty” in any deed that does not convey a full warranty of title. An uninformed property owner using a generic, fill-in-the-blank form for a special warranty deed could become criminally liable for including the wrong language.

Can a transferor sue a special warranty deed?

If a deed makes a warranty of title, the transferee can sue the transferor over any title issues. The designation of a deed as a special warranty deed identifies the warranty of title.

What kind of deed do I need to sell my house?

The grantor, similar to a Warranty Deed, is guaranteeing that they have the full legal rights to sell that property. A Special Warranty Deed is often used in commercial property sales. A variation of the deed is the General Warranty Deed, which is commonly used in property transactions. It’s okay to use a Special Warranty Deed.

When to use a limited warranty deed?

Limited warranty deeds are also used when a seller is unwilling to give a full warranty deed and the buyer is not willing to accept a quitclaim deed. There are no statutory deed forms for this state; common law legal language should be used in creating a limited warranty deed.

What is a special warranty?

Definition of special warranty. : a limited warranty in a transfer or conveyance by which the grantor warrants the property transferred to be free of all liens and encumbrances made by, through, or under him.

What is a specialty warranty deed?

Special Warranty Deed. A written instrument that conveys real property in which the grantor (original owner) only covenants to warrant and defend the title against claims and demands by him or her and all persons claiming by, through, and under him or her. In the special warranty deed, the grantor warrants that neither he nor anyone claiming…

What is a statutory warranty deed?

Definition of Statutory Warranty Deed. A warranty deed is a document that transfers the title to a property from the seller to the buyer. It protects the buyer from the chance that someone will come along and lay claim to the property by saying the seller had no right to sell it. A statutory warrant deed is an abbreviated version of a warranty deed written in accordance with state law.