This week we continue to cover the three most common types of Deeds: General Warranty Deeds, Special Warranty Deeds, and Quit Claim Deeds. This week, the topic is Special Warranty Deeds.

Builders, Lenders, and Investors use Special Warranty Deeds as a way to protect themselves from the past owners.

In a Special Warranty Deed, the seller only warrants the title of property for the time they actually have owned the real estate. Any title issues that arise before the sellers purchased the property are not covered by the Special Warranty Deed.

Because of the limited scope of the Special Warranty Deed, title insurance becomes even more important. Without title insurance, responsibility for any title issues prior to the seller’s purchasing the property will fall on the new buyer.