What defines a special warranty deed?

A special warranty deed is a specific type of deed that provides a limited warranty regarding the title of the property. This deed guarantees that the grantor (the seller) holds title to the property and that the property was not encumbered during the time the grantor owned it. Essentially, it warrants only that the grantor received title and does not protect the grantee (the buyer) against any claims or issues that existed prior to the grantor taking ownership.

The focus of a special warranty deed is on the time during which the grantor had ownership, making it distinct from other types of deeds, like general warranty deeds, which provide broader protections to the grantee.

Other options present inaccurate definitions or characteristics of what a special warranty deed entails. For instance, stating that it guarantees no encumbrances exist at all does not align with this deed's nature, as it only covers the time the current owner held the title. Similarly, options that imply it conveys property without any warranties or with full market value assurance misrepresent the essential function of a special warranty deed, which is to offer a limited form of protection regarding past ownership issues.