Connecticut special warranty deed

What a special warranty deed does in Connecticut

A special warranty deed, also called a limited warranty deed or a covenant deed in some states and a grant deed in California, sits between a quitclaim and a general warranty deed. The grantor promises they did nothing during their own ownership to damage the title, and nothing more. Anything that happened before they bought the property is the buyer's risk. Estates, trustees, banks, and builders commonly use it.

The Connecticut law behind this deed

Connecticut has no section written specifically for special warranty deeds. The instrument runs on the general conveyancing and recording statutes below, which is why the requirements here look like those for any other deed in the state.

When Connecticut homeowners use a special warranty deed

• Sell a property you inherited or hold as trustee
• Convey a property you have owned only briefly
• Transfer commercial or investment property
• Give a buyer more protection than a quitclaim without accepting unlimited exposure

What Connecticut requires on the deed

These are the execution and formatting rules for Connecticut deeds. A town clerk cannot refuse a deed that misses the margin or return address rules (Conn. Gen. Stat. § 7-24(f)), but a deed without its two witnesses can be challenged for two years after it is recorded (Conn. Gen. Stat. §§ 47-5, 47-36aa).

How to complete and record it in Connecticut

1. 1Find your current deedYou need the legal description from it, word for word. If you can't find your copy, the Town Clerk can provide one, usually for a few dollars.
2. 2Identify everyone by full legal nameNames must match the current deed and government ID exactly, middle names included. A mismatch creates a gap in the chain of title that shows up years later at closing.
3. 3Complete the deedDeedly builds it with the wording, notary certificate, and 3-inch first-page margin used for Connecticut deeds.
4. 4Sign in front of a notaryBring two current IDs for every signer: one government-issued with your photo and signature, and a second that shows at least your signature. Bring two witnesses too; the notary can be one of them, but a grantor or a grantee cannot. Wait to sign until you are in front of the notary and the witnesses, who must see you sign.
5. 5Complete Form OP-236 Real Estate Conveyance Tax ReturnConnecticut requires this alongside the deed, including for exempt transfers. Your filing packet explains which boxes apply to your situation.
6. 6Record it with the Town ClerkFile in the town where the property is located and pay the recording fee. Many offices in this state also accept e-recording, but usually only from approved submitters such as title companies. Keep the stamped receipt. It fixes your priority date.
7. 7Update insurance and tax recordsA change of ownership can affect your homeowner's policy, your homestead or senior exemption, and in some states the assessed value. Do this within a few weeks.

What it costs in Connecticut

Connecticut charges a real estate conveyance tax of 0.75% state plus 0.25% town (up to 0.5% in some towns) of the price; the state portion is 1.25% for non-residential property other than vacant land, and on a home sold for $800,000 or more it is 0.75% of the first $800,000, 1.25% of the part up to $2.5 million and 2.25% of the part above that; no tax when the consideration is under $2,000. Customarily paid by the grantor. A mortgage the recipient takes over, or that stays on the property, counts as consideration, so a gift of a mortgaged home is taxed on the loan balance. By law the grantor pays the tax (Conn. Gen. Stat. § 12-495). The town's share is already included in the rate above, and Connecticut has no county transfer tax.

Exemptions that commonly apply to a transfer like this: deeds between spouses (Conn. Gen. Stat. § 12-498(a)(14); Form OP-236 exemption code 17), deeds for which the consideration is less than $2,000, such as a gift of property with no mortgage on it (§ 12-498(a)(10)), and deeds that only change the identity or form of ownership, with no change in beneficial ownership (§ 12-498(a)(17); code 20). You have to claim the exemption. The recorder won't apply it for you.

Where to record it in Connecticut

Connecticut deeds are recorded with the Town Clerk in the town where the property sits, not where you live. There are 169 towns in Connecticut.

Many Connecticut recording offices accept e-recording through vendors such as Simplifile, CSC, or ePN. E-recording is generally open only to approved submitters such as title companies, attorneys, and lenders, so if you prepared the deed yourself, plan to record in person or by mail. Some offices accept filings from the public through those vendors; your town's website will say.

Recording offices we cover in Connecticut: Bridgeport, Stamford, New Haven, Hartford, Waterbury, Norwalk, Danbury, West Hartford, Greenwich. See all Connecticut recording offices.

What a special warranty deed does NOT do

Being honest about the limits is more useful than a sales pitch. Every one of these catches somebody out.

• Defects that predate your ownership are not covered. The buyer bears that risk.
• It does not substitute for a title search or an owner's title insurance policy.
• It transfers ownership immediately and cannot be revoked.
• Some purchase contracts specifically require a general warranty deed; check yours before using this one.

Quirks of Connecticut law that catch people out

• Connecticut records deeds with the TOWN clerk, not a county office. There are 169 separate land records offices and no county recorders at all.
• Every Connecticut deed needs two witnesses as well as the notary (Conn. Gen. Stat. § 47-5). A town clerk will record a deed without them, but until two years after recording it can be challenged for the missing witnesses (Conn. Gen. Stat. § 47-36aa).
• Form OP-236 (Real Estate Conveyance Tax Return) must be filed with the deed even when the transfer is exempt.
• Connecticut does not have tenancy by the entirety. A deed to a couple 'as tenants by the entirety' creates a joint tenancy with right of survivorship (Conn. Gen. Stat. § 47-14a). Married couples who want the survivor to take the whole property should take title as joint tenants with right of survivorship.
• Connecticut does not recognize transfer-on-death deeds. Probate avoidance here means a living trust or survivorship titling.

How to hold title in Connecticut

When two or more people take title in Connecticut and the deed says nothing more, the law presumes a tenancy in common, which means no automatic survivorship. If you want the survivor to take the whole property, the words have to be on the deed. Forms of co-ownership available in Connecticut: joint tenancy with right of survivorship and tenancy in common.