Difference Between a General Warranty Deed and a Special Warranty Deed

2 min read

Both General Warranty Deeds and Special Warranty Deeds can be used for real estate sales, but they differ in the extent of the coverage of their warranties.

Both General Warranty Deeds and Special Warranty Deeds can be used for real estate sales where a property, either residential or commercial, is transferred between parties unfamiliar with each other. Ownership of a property is transferred from the seller to the buyer with certain guarantees against future problems or claims, which protect the buyer against fraud. The difference between a Warranty Deed and Special Warranty Deed is the extent of the coverage of the warranty.

Both types of Warranty Deeds (Special and General) guarantee the buyer:

That the seller owns the title
That the seller is legally allowed to sell the property
That the property has not already been sold
That the property is free of debt or other claims (aside any mentioned in the deed)
That the seller is responsible for any problems/faults with the property

However, where the guarantees in a Warranty Deed cover the property's entire history, the Special Warranty Deed only covers the period of time for which the seller owned it. While the seller in a Warranty Deed must defend the title against all other claims and compensate the buyer for any unsettled debts or damages, the seller in a Special Warranty Deed is only responsible for debts and problems accrued or caused during his ownership of the property.

Create your General Warranty Deed or Special Warranty Deed now with our easy online interview process!

Note: If the Grantor (seller) does not desire to provide any guarantees, consider preparing a Bargain and Sale Deed or a Quitclaim Deed.

About Frederic Goodwill

I am a trial and transactional attorney with over twenty years of experience in courtrooms and boardrooms across the country. I specialize in employment, environmental, insurance, and education law as well as business, estate planning and real estate law. View my website at www.fcg2law.com for more information.

This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.