Understanding the Difference Between General and Special Warranty Deeds in Real Estate

A deed is a legal document that transfers ownership of a property from one person to another. There are two main types of deeds: general warranty deeds and special warranty deeds. In this article, we will explore the differences between these two types of deeds and how they affect the transfer of property ownership.

A general warranty deed is a type of deed that guarantees the seller's ownership of the property and promises to defend the buyer's title to the property. This means that the seller is responsible for any defects in the title, including any liens or encumbrances that may be attached to the property. General warranty deeds are often used in real estate transactions where the buyer is purchasing a property from a seller who has clear title to the property.

A special warranty deed, on the other hand, only guarantees the seller's ownership of the property for a specific period of time, usually the time period during which the seller owned the property. This means that the seller is only responsible for any defects in the title that occurred during their ownership of the property. Special warranty deeds are often used in real estate transactions where the buyer is purchasing a property from a seller who has a limited ownership history or where the buyer is purchasing a property that has been subject to a foreclosure or other type of distress sale.

One of the main differences between general and special warranty deeds is the level of protection they provide to the buyer. General warranty deeds provide the buyer with a higher level of protection, as they guarantee the seller's ownership of the property and promise to defend the buyer's title to the property. Special warranty deeds, on the other hand, provide the buyer with a lower level of protection, as they only guarantee the seller's ownership of the property for a specific period of time.

Another difference between general and special warranty deeds is the level of risk they pose to the seller. General warranty deeds pose a higher level of risk to the seller, as they require the seller to defend the buyer's title to the property and may expose the seller to liability for any defects in the title. Special warranty deeds, on the other hand, pose a lower level of risk to the seller, as they only require the seller to guarantee their own ownership of the property for a specific period of time.

In conclusion, the difference between general and special warranty deeds is an important consideration for anyone involved in a real estate transaction. Understanding the differences between these two types of deeds can help buyers and sellers make informed decisions about the transfer of property ownership and can help to ensure a smooth and successful real estate transaction.