The General Warranty Deed and the Special Warranty Deed

Published by Joseph Gentile on September 10, 2024September 10, 2024

When transferring property ownership, the type of deed used can significantly impact the level of protection afforded to the buyer. Two common types are the general warranty deed and the special warranty deed. Understanding their differences is crucial for both buyers and sellers.

General Warranty Deed

A general warranty deed offers the highest level of protection to the buyer. This type of deed guarantees that the seller holds clear title to the property and has the legal right to sell it. It includes covenants that assure the buyer that the property is free of any encumbrances, such as liens or mortgages, except those explicitly stated in the deed. Moreover, the general warranty deed promises that the seller will defend the buyer against any future claims or disputes over the property’s title. Essentially, it covers the property’s entire history, providing a broad guarantee that extends back to its origins.

Special Warranty Deed

In contrast, a special warranty deed offers a more limited guarantee. It only assures the buyer that the seller has not incurred any encumbrances or title issues during their period of ownership. It does not provide any warranty against issues that may have arisen before the seller’s ownership. Therefore, while the special warranty deed protects the buyer from any actions taken by the seller that might affect the title, it does not offer the same historical assurances as the general warranty deed. This type of deed is often used in commercial real estate transactions or when the seller has only owned the property for a short period.

Choosing the Right Deed

The choice between a general warranty deed and a special warranty deed hinges on the level of assurance the buyer needs and the willingness of the seller to provide broad guarantees. Buyers seeking maximum protection typically prefer a general warranty deed, while sellers, particularly in commercial transactions, might lean towards a special warranty deed to limit their liability.

Summary

In summary, the main difference between the General Warranty Deed and the Special Warranty Deed lies in the scope of the guarantee provided. A general warranty deed offers comprehensive protection extending to the property’s entire history, while a special warranty deed offers limited protection, only covering the seller’s period of ownership. Understanding these distinctions helps buyers and sellers make informed decisions during property transactions.

Contact Gentile Property Law Office

If you decide that you would like to further discuss, please contact joseph@gentileproplaw.com.