A Special Warranty Deed is a deed to transfer ownership rights to another entity. It doesn’t have some guarantees that you might find with a General Warranty Deed.
It’s a useful way to limit some of the liability if you are closing on property by yourself.
Sometimes a Title Company will do a Special Warranty Deed, when they can’t confirm some things in the past or if the seller had a Special Warranty Deed.
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What is a Special Warranty Deed?
A Special Warranty Deed is similar to a General Warranty Deed. It transfers ownership rights to another entity.
The difference is that a Special Warranty Deed does not have full warranties. Basically it warrants that everything was good with the title from the time that you owned the property. It doesn’t warrant any issues that might have come up in the past.
Warranties in a General Warranty Deed:
- Covenant of seisin – has legal right to convey it
- Covenant against encumbrances – free of liens
- Covenant of quiet enjoyment – good against third parties
- Covenant of further assurance– prove the title is good in the future
A Special Warranty Deed only promises that the deed is good from the time they owned the property. It’s safer for the seller to give property out with a special warranty deed.
Who Should Use A Special Warranty Deed?
If you are closing on property by yourself, you will want to sell your property on a special warranty deed.
If you are buying the property, you will want a General Warranty Deed. A General Warranty Deed is a bit more secure.
How to Set Up A Special Warranty Deed?
You can do a Special Warranty Deed through different online platforms. I’ve used Rocket Lawyer for creating a Special Warranty Deed.
Go to Rocket Lawyer to Create Your Special Warranty Deed.
It’s a relatively easy process and you can ask lawyers for help if you have any issues.
Rocket lawyer will walk through all the different parts. You just need to input the information. Some of the most important information will be the grantor, grantee, APN, and legal description.
The Grantor is the person selling the property.
The Grantee is the person buying the property.
The APN or Accessor’s Parcel Number is how to identify the property if there isn’t an address. It’s common with rural vacant land.
The Legal Description is associated with every real property. You will need this information to close on the property.
You can get this information from the county. Ask for the deed to the property. They will give you a copy.
A Special Warranty Deed will have different places to put in your information. You will need to make sure that the seller or Grantor notarizes the deed.
You can get a deed notarized at your local bank or credit union for free.
Once the deed is notarized, send it to the county for recording. Once it’s recorded, the county will have in their records the transfer of ownership.
Any time, that you are unsure about the deed itself. Check with an attorney. If you use Rocket Lawyer, you can ask one of their attorneys to check the deed for you.
Frequently Asked Questions
Do I need an attorney or title company to do a Special Warranty Deed?
Some states require an attorney for real estate closings. You will need to close with an attorney in these states.
How much does it cost to record a deed with the county?
It’s inexpensive. Usually it will cost between $20-50 for recording with the county. Some counties base the recording fee on the purchase price of the property.
How can I get the legal description of a deed?
Ask the county for a copy of the previous deed. The previous deed will have the legal description.
