What is a special warranty deed?
A special warranty deed transfers ownership and promises one thing: the grantor did nothing during their own ownership to damage the title. Anything that happened before they bought the property is expressly not their problem.
The distinction in one line
| Deed | Covers title problems from |
|---|---|
| General warranty deed | The entire history of the property, back to the original grant |
| Special warranty deed | Only the period the grantor owned it |
| Quitclaim deed | Nothing at all |
Other names for the same thing
It goes by several names depending on where you're: limited warranty deed, covenant deed, grant deed in California, and bargain and sale deed with covenants against grantor's acts in New York. The mechanics are the same. A warranty limited to the grantor's own tenure.
Who uses one
- Executors and trustees, who are selling property they never lived in and know nothing about.
- Banks selling foreclosed property, which will not warrant a chain of title they inherited from a defaulting borrower.
- Builders and developers, who owned the land briefly and want their exposure to match.
- Anyone selling an inherited house. You're not in a position to warrant what your grandparents' neighbours did in 1974.
- Commercial transactions, where it is the market standard and title insurance carries the real risk.
What the buyer should do about it
Accepting a special warranty deed is fine (most commercial real estate in the United States transfers this way) provided you cover the gap the covenant leaves open.
- Get a full title search. Someone has to look at the history, since the seller is not standing behind it.
- Buy an owner's title insurance policy. This is the actual protection. It pays claims and funds the defence regardless of when the defect arose.
- Read the exceptions. Both the deed and the title commitment list what is excluded. That list is the real risk allocation.
If your contract says warranty deed, you get a warranty deed
A purchase agreement that calls for a general warranty deed is a binding obligation. A seller who shows up at closing with a special warranty deed is in breach. Check the contract before either side prepares the document.
$69, with your state's statutory limited-covenant language.
Common questions
For the buyer, no. It covers a shorter period. In practice the difference matters less than people expect, because title insurance carries most of the real risk and the older a defect is, the less likely it is to surface. The gap matters most on property with a complicated or poorly documented history.
Yes, meaningfully. A special warranty deed at least promises the grantor did not create a problem. No undisclosed mortgage they took out, no easement they granted, no lien from their unpaid contractor. A quitclaim promises nothing whatsoever.
You can, and it is a reasonable middle ground when you inherited the property and are passing it on. For most family transfers a quitclaim deed is simpler and does the same job, because nobody is relying on covenants anyway.
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Deedly is not a law firm
We provide self-help software and state-specific statutory forms; you make your own decisions about your property. Using Deedly does not create an attorney-client relationship, and nothing here is legal advice. If your situation is complex or contested, talk to a licensed attorney in your state.