Free Special Warranty Deed

In California, the County where the property is located assesses a Documentary Transfer Tax on the consideration or value of the real property transferred minus any liens or encumbrances (such as debt on the property that is assumed by the Grantee) on the real property at the time of the transfer when the consideration or value of the real property is over $100.00.

By answering questions in the interview process, the correct tax will automatically be calculated and added to the Deed. For more information, the tax is calculated as follows:

(Amount of consideration/Value of Real Property) - (Amount of Liens or Encumbrances) = VALUE

VALUE rounded up to the highest $500.00 = NEW VALUE

NEW VALUE X .55 = Documentary Transfer Tax

PLEASE NOTE: Certain counties assess an additional tax which may be included in the Documentary Transfer Tax
Culver City $4.50 per $1,000.00
Los Angeles $4.50 per $1,000.00
Pomona $2.20 per $1,000.00
Redondo Beach $2.20 per $1,000.00
Santa Monica $3.00 per $1,000.00

Sample Calculation:
Consideration= $22,150, No Liens to Subtract
Value=$22,150�.rounded up to highest $500= $22,500 (New Value)
$22,500 x .55 = Documentary Transfer Tax of $24.75

If this property was in Pomona, you would need to divide $22,500/1,000 = $22.50, then multiply the $22.40 by $2.20 for an additional tax of $49.50.

The final tax in this case would be:
$49.50 + $24.75 = $74.25

Certain types of transactions may be exempt from paying California's Documentary Transfer Tax. Below is a list of the known exemptions and explanations of each:

• A transfer between ex-spouses as part of a divorce settlement. This type of transfer is made where one ex-spouse gives up interest in property to the other ex-spouse after a divorce.
  
• A confirmation of title that does not change the interest the grantee previously held. For example, the deed clarifies that "John Doe" is also known as "John L. Doe".
  
• To secure a debt. This type of transfer is made when interest in the property is used to obtain a mortgage, loan or other debt.
  
• Due to satisfaction of a debt. This type of transfer is made upon full payment of a debt where the creditor held the property as collateral.
  
• Transferring land into or out of a Living Trust. This type of transfer is made to move the property into or out of a Living Trust.
  
• Changing tenancy between the property owners. For example: John and Carol Doe held the land as tenants in common previously and now wish to hold the land as joint tenants.
  
• Due to a court order not pursuant to a sale. This type of transfer is appropriate if the property is used to satisfy a court ordered requirement which did not involve the sale of the property.
  
• Gift. This type of transfer is appropriate for a gift between family members where the Grantor receives nothing in exchange for the transfer.
  
• To clarify the real estate is the separate property of a spouse. For example: John and Carol Doe married and Carol Doe inherited property prior to the marriage. John and Carol Doe are now signing a deed to clarify that John Doe does not have an interest in the property even though he is married to Carol.
  
• To clarify the real estate is community property. For example: John and Carol Doe married and Carol Doe inherited property prior to the marriage. John and Carol Doe are now signing a deed to clarify that John Doe and Carol Doe own the property together as husband and wife.
  
• To clarify a change of name of the original grantor. This type of transfer clarifies a change to the original Grantor's name - for example, upon completion of a legal name change or upon marriage or divorce of a property owner.
  
• To transfer title once the terms of a land contract are met. This type of transfer is made after both parties have met the terms of a contract for sale of the property.
  
• Transfer between an individual and their business or corporation or vice versa. Where the debt on the property is more than the value of the property. This type of transfer is appropriate when the Grantee is assuming debt attached to the property (ex: a mortgage or lien) which is greater than the value of the property.
  
• A transfer as part of an oil and gas lease where the value of the lease is less than $100.00.

The consideration for the transfer is the amount of money given in exchange for the property. If you are only clarifying a previously filed deed, transferring property to an ex-spouse, gifting property to a family member or moving property into a trust, your transfer may not involve an exchange of money. For these and other similar situations most states will accept the general language "One Dollar ($1.00) and other good and valuable consideration" as a substitute for a specific dollar amount since your transaction did not involve the sale of the property.

Some states require the name and address of the preparer of the Special Warranty Deed to be listed in the document. Failure to provide this information can result in additional recording fees or rejection of your deed by the Recorder's or Registrar's Office.

Wisconsin law requires the Grantor state if the property being conveyed is the homestead or home where the Grantor currently resides. One reason for this clarification is to ensure one spouse does not attempt to sell the home without the consent of the other spouse.

Certain types of transactions may be exempt from paying Illinois Documentary Transfer Tax. Below is a list of the known exemptions and explanations of each.

• Transfers the property as security for a debt. This type of transfer is made when interest in the property is used to obtain a mortgage, loan or other debt.
  
• To the United States, the state, a state agency or a charitable non-profit organization.
  
• To transfer property that part participated in program authorized by the Home Ownership Made Easy Act. If the Grantee purchased the home through the use a program created under the Home Ownership Made Easy Act that provided a method for you to save and invest money other a 2 or more year period that was later used as your down payment.

The legal description is a formal description of the location of the property. In urban and suburban areas, the legal description implies which lot the property occupies. If you are in a rural area, the property description includes the boundaries and property lines with respect to the landmarks. The description often includes a tax parcel or tax assessor's number.

You can find the legal description in the title of the property. If you don't have a copy of the title, you can find a copy or obtain the legal description from the office in your city or county where taxes are paid on the property or where property deeds are registered.

This is a clause which should be included if the Grantor wishes to grant property to a child or other person upon their death. The Grantor can sign and record the deed now reserving a life estate to himself during his lifetime. With the life estate the Grantor remains in control of the property (as well as any mineral rights) during his lifetime, receives any proceeds from leases involving the property and remains financially responsible for the property. In the case of multiple Grantors, the life estate expires upon the death of the last surviving Grantor.

Louisiana requires additional personal information be provided for the Grantor(s) and Grantee(s) including the date of death of a spouse, if a spouse is deceased, and facts about the divorce if a Grantor or Grantee is divorced. This information is required as it applies to the buyer and seller of the property. Information specific to a divorce can be found on the original divorce decree or judgment or by contacting the court that handled the divorce.

A deed for property will not be accepted for recording unless it includes a statement reflecting the tax status. You will need to determine how current the city and state taxes are by viewing your tax statements or by contacting the Bureau of Treasury for the property city or the Louisiana Tax Commission. Most cities have tax information available to you on their website. The Louisiana Tax Commission website allows you to search your state tax records. The web address for this site is: http://www.latax.state.la.us/.

Due to the large amount of oil and mineral activity on property in Minnesota, the state requires a seller to declare if any new wells have been placed on the property since the last Well Disclosure Certificate was filed. If you are unsure about whether or not any changes have occurred you should contact the County Recorder who may be able to provide you with a copy of the previously recorded Well Disclosure Certificate.

Certain types of transactions may be exempt from paying New Hampshire's Documentary Transfer Tax. Below is a list of the known exemptions and explanations of each.

• Part of a divorce settlement giving interest to an ex-spouse. This type of transfer is made where one ex-spouse gives up interest in property to the other ex-spouse after a divorce.
  
• Transfers the property as security for a debt (obtain a mortgage, etc.). This type of transfer is made when interest in the property is used to obtain a mortgage, loan or other debt.
  
• Transfers the property to pay off a loan or debt. This type of transfer is made upon full payment of a debt where the creditor held the property as collateral.
  
• Transfers as a gift. This type of transfer is appropriate for a gift between family members where the Grantor receives nothing in exchange for the transfer.
  
• Transfers the property to the state, a state agency, a county, a city, a town, a school district, or a village district.
  
• Required to clarify a deed previously filed which does not change the property owners or their interest (ex: to add a middle initial for an owner's name). This exemption applies if the deed only corrects the spelling of names or address or other information in the deed and does not change the owners or their interest in the property.
  
• Death of a Co-Tenant. This type of transfer occurs when a joint tenant dies and the remaining joint owner(s) wish to remove the decedent's name from the deed.

A statement must be filed with the State Board of Equalization for all transfers of property in North Dakota unless the transfer qualifies as exempt. Below is a list of the possible exemptions for a Special Warranty Deed.

• The property is owned or used by public utilities: Applies if a public utility company owns or leases the property transferred in the deed.
  
• The Grantor and Grantee are of the same family or corporate affiliate: Applies to transfers as gifts or exchanges between family members.
  
• The property is transferred to settle or make final distribution of an estate: Applies if the property transferred belonged to a deceased person and the property is being distributed to that person's heirs.
  
• The property is transferred to or from a government or government agency: Applies to transfers of property involving the state or federal government.
  
• The property is transferred as a result of a forced sale, mortgage foreclosure or tax sale: Applies to transfers required by a bank for failure to pay mortgage payments or due to failure to pay taxes.
  
• The property is transferred to or from a religious, charitable or nonprofit organization: Applies to property transferred as a donation to a church or other charity.
  
• The transfer indicates a change of use by the new owners: Applies if the property transferred will be used by the new owner for a new purpose. For example, a residential property will now be used as commercial property.
  
• The transfer of property is not assessable by law: Applies if the property owners have received notice the property is exempt from assessment of taxes.
  
• The property transferred is agricultural land less than 80 acres: Applies to transfers of farm or pasture land less than 80 acres in size.
  
• The property is transferred as part of a judgment (ex: a final divorce decree or settlement): Applies to transfers made to comply with a court ordered judgment, such as a divorce judgment.

A Special Warranty Deed, also known as a Limited Warranty Deed, is a type of real property (i.e. land or a building like a house or apartment) deed where the grantor or owner of the property transfers (grants) and warranties title to their portion of interest in the property in which the grantor has title. A Special Warranty Deed is commonly used when a property is transferred between parties unfamiliar to each other as it provides certain warranties or safeguards for the Grantee or buyer against fraud. A Special Warranty Deed provides a guarantee to the buyer that the seller owns the property, has the right to sell the property free and clear of any debt (unless the debt is disclosed in the deed). Unlike a Warranty Deed, where the Grantor will defend the title to the property against any claims whatsoever against the title that resulted from defects under any prior ownership including the sellers' ownership, a Special Warranty Deed only guarantees the title against defects caused during the Grantor's ownership of the property. An example of a potential title claim/defect is a mortgage on the property that has not be satisfied. Without a warranty the Grantee has limited recourse in holding the Grantor liable for the unpaid mortgage. While the Grantee does not become responsible for paying the mortgage the Grantee will likely be unable to sell the property due to the cloud of title caused by the attached mortgage.

** If the Grantor does not desire to provide any guarantees you should consider preparing a Quit Claim Deed.

Due to the amount and potential for coal mining throughout the state, Pennsylvania law requires a notice be placed in all deeds alerting the new property owner (Grantee) of the possibility that their land and structures on the land (appurtenances) may not be protected against damage caused by subsidence as a result of coal mining. Subsidence is the motion of the property shifting downward, which can be caused when minerals (like coal) are removed. Unless the Grantor guarantees protection to the Grantor, a notice must be included in the deed. The Grantor is not required to provide protection from subsidence to the Grantor.

If the property being transferred is not in an area known for coal mining, the Grantor does not own the rights to the coal, or if no coal mining is currently taking place on the property, it may not be necessary for the Grantor to provide such a guarantee.

Once a deed is recorded the document information is kept on record in the County Recorder's or Registrar's Office. The information is filed under a specific volume, book or plat and page number. This recording information can be found on the first or last page of the previously recorded deed or by contacting your County's Recorder or Registrar's Office.

If you currently own an interest in mineral rights on the property being transferred you may wish to reserve this interest. Unless stated otherwise, the transfer of mineral rights with the property may be assumed. A mineral reservation clause should be considered if you believe you may own an interest in oil, gas or other mineral rights that you do not desire to transfer as a part of this deed.

1. The Special Warranty Deed needs to be signed by the person or persons granting their rights to the property - the Grantor. If the Grantor is a trust, a trustee authorized to sign for the trust must sign the Special Warranty Deed.

2. Some states have a coversheet or additional information that must accompany the Special Warranty Deed. Any of these state-specific requirements can be found in the Legal Checklist that accompanies the document. Please take time to review the Legal Checklist before signing and filing the Special Warranty Deed.

3. The Special Warranty Deed must be notarized. The notary section is in a format appropriate to the state where you are signing it.

4. After being signed and notarized, the Special Warranty Deed must be filed in the city or county where the property is located. Often a small fee must be paid at the time the Special Warranty Deed is filed.

5. The original recorded Special Warranty Deed will be sent to the return address indicated on the deed.

Certain types of transactions may be exempt from paying South Dakota's Documentary Transfer Tax. Below is a list of the known exemptions and explanations of each.

• No consideration. No consideration (money) was exchanged as a part of this deed.
  
• The property is transferred from one ex-spouse to the other as part of a divorce settlement. This type of transfer is made where one ex-spouse gives up interest in property to the other ex-spouse after a divorce.
  
• The property is transferred to secure a debt. This type of transfer is made when interest in the property is used to obtain a mortgage, loan or other debt.
  
• The property is transferred to satisfy a debt. This type of transfer is made upon full payment of a debt where the creditor held the property as collateral.
  
• The property is transferred to the United States, the state, a state agency, a county, a city, a town, a school district, or a village district.
  
• The new deed corrects a previously filed deed. This exemption applies if the deed only corrects the spelling of names or address or other information in the deed and does not change the owners or their interest in the property.
  
• Business Transfers. This type of transfer is made between a corporation or limited liability company and its owner, shareholders or members.

Certain types of transactions may be exempt from paying South Dakota's Documentary Transfer Tax. Below is a list of the known exemptions and explanations of each.

• Consideration. No consideration (money) was exchanged as a part of this deed.
  
• A transfer between ex-spouses as part of a divorce settlement. This type of transfer is made where one ex-spouse gives up interest in property to the other ex-spouse after a divorce.
  
• To secure a debt. This type of transfer is made when interest in the property is used to obtain a mortgage, loan or other debt.
  
• Due to satisfaction of a debt. This type of transfer is made upon full payment of a debt where the creditor held the property as collateral.
  
• To the United States, the state, a state agency, a county, a city, a town, a school district, or a village district.
  
• To correct a previously filed deed. This exemption applies if the deed only corrects the spelling of names or address or other information in the deed and does not change the owners or their interest in the property.
  
• Business Transfers. This type of transfer is made between a corporation or limited liability company and its owner, shareholders or members.

The Grantee is the person, persons, or entity such as a trust or business that is being granted rights to the property transferred by the Special Warranty Deed. All those being granted the property must be listed as the grantee.

The Grantor is the owner (all or partial) of the property being transferred by the Special Warranty Deed. The Grantor could be a single person or persons or an entity like a trust or business. For example, if a husband and wife own property together, both must be listed as the Grantor of the property.

The Grantor only gives up their share of ownership in the property, but not their obligation to mortgage payments for the property. The property must be refinanced if the loan is to be transferred to the Grantee.

Although the Special Warranty Deed is fairly universal, there are some differences state to state. Make sure you indicate the correct state and county in which the property is located. Doing this will make sure that the interview asks the right questions and the document takes the proper form.

Tenancy determines how the property will be held and transferred upon the death of a Grantee (the person or persons who are receiving the property) when dealing with multiple grantees. If the tenancy of the property is unclear, there will be problems or difficulties upon the death of a grantee. Many states assume that unless specified, the property is held as tenants-in-common. This can create problems when property is owned by spouses or grantees that desire for the property to pass to their spouse or other grantee upon death. If the property is held as tenants-in-common, the surviving spouse or other grantee may be required to go through probate to transfer the property. If the property is held as joint tenants the remaining grantee will automatically inherit the other grantee's interest when that grantee dies.

Definitions:

Tenants-in-Common: Allows each grantee's interest in the property to pass to his or her estate and prospective heirs upon death. This works well when friends, siblings or business partners own land together but wish for the land to pass to their own individual families upon death.

Joint-Tenants with Rights of Survivorship: Provides for the deceased grantee's interest to automatically pass to the remaining grantee(s), usually with the recording of a death certificate.

Tenancy by the Entirety: This option is for married couples who desire to own the property together in such a way that each holds full ownership of the property and neither spouse can sell the property without both spouses selling their interest.

If a property is located outside the city limits or in a rural area, it may not be incorporated. The property likely does not have a physical street address as it is not attached to a particular city, town or municipality. The property is only referenced by its legal description. While in most cases real property is incorporated, many rural areas have large plots of pasture or farm land that lie in unincorporated areas. You know your property is in an unincorporated area if your property was never assigned a physical street address.