You probably didn’t think you’d need to pull out your dictionary when you navigate buying or selling your home. But if hearing the words “special warranty deed” has you scratching your head, you’re most likely not alone. Don’t let the jargon scare you! A real estate agent can help you understand the terminology.
Simply put, a special warranty deed is very similar to a general warranty deed, because they both protect the buyer of the property. The term “special” may be tricky in this instance. It doesn’t mean that this is a better or higher quality deed than a general warranty deed. It is actually less comprehensive and offers less protection against title defects than a general warranty deed.
The grantor of the deed is the seller in the transaction. In a general warranty deed the grantor conveys the property with warranties or covenants.
How General and Special Warranty Deeds Are the Same
General and special warranty deeds guarantee the same basic things. They both make these basic warranties:
- Covenant of quiet enjoyment – The seller promises that no third parties can establish title to the property.
- Covenant of further assurance – The seller promises that they will deliver any instruments or documents necessary to make the title good.
- Covenant of seisin – The seller promises they are legal owners of the property.
- Covenant against encumbrances – The seller promises the property does not have any liens or other encumbrances on the title (unless they are stated in the deed).
- Covenant of warranty – The seller promises they will protect the buyer if someone claims to have a superior title.
- Covenant of right to convey – The seller promises they have not transferred the property to anyone else, and they have the legal right to convey (or sell) the property.
How General and Special Warranty Deeds Are Different
Generally, a special warranty deed offers the buyer less protection compared to a general warranty deed. Here’s how the two types of deeds differ:
- Length of time the deed makes guarantees – A special warranty deed only makes the guarantees listed above for a limited time, the time the seller has owned the property. The general warranty deed makes those same guarantees for the entire history of the title.
- Amount of protection for the buyer – If there is a problem with the title that happened during the seller’s ownership, a special warranty deed protects the buyer’s interest. If there is any problem in the life of the entire title, a general warranty deed protects the buyer’s interest.
- Types of sales each deed is used in – A special warranty deed is typically used in commercial property sales. Most residential property sales will use a general warranty deed.
You can learn more about different types of deeds and other helpful information about buying and selling a home on our blog.
If you’re buying or selling a home in the Gainesville, Haymarket or Bristow area, don’t get confused by all these terms! Contact us today! We can help you make sense of every part of the transaction, so you can focus on what matters most — moving into your dream home!
Looking for real estate services in Gainesville, Haymarket or Bristow? Contact your local real estate expert Belinda Jacobson-Loehle ofJacobson Realty and Home Staging today. Also be sure to sign up now for a FREE copy of my eBook, “The Real Estate Key – What You Need to Know!”
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