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Do You Need a Special Warranty Deed? (Templates Included)

Jerry Norton

Aug 8, 2024

person writing on paper

You’ve found the perfect investment property — it’s in an up and coming neighborhood, it will have a good cash on cash return, and you can expect an excellent ROI. 

Everything looks ready for you to sign on the dotted line. But wait. 

How do you know the property free and clear of liens or other clouds on title? 

If they are, then you’re good to go. If not, you could find yourself in a bitter dispute about the true ownership of the house down the road. 

That’s where a special warranty deed comes in. 

If you’re ready to learn everything you need to know about a special warranty deed, keep reading!

What is a Special Warranty Deed? 

A special warranty deed is a type of deed that guarantees the buyer that the property is free of liens or any clouds on title. 

This means that the seller is providing a warranty against any defects in title that may have occurred during their ownership, but not any defects that may have existed prior to their ownership. 

With a special warranty deed, the seller is stating that they have not done anything to compromise the title of the property while they owned it.

This is why if the seller refuses to offer a special warranty deed, it can be seen as a red flag. 

Special Warranty Deed vs. Warranty Deed

That’s right: there are different types of deeds. So how does a special warranty deed differ from a general warranty deed?

The main difference between general and special warranty deeds is the extent of liability coverage they provide.

A general warranty deed offers the broadest protection to the buyer, since it provides warranties that cover the entire chain of title, not just the period of the seller's ownership. 

This means that the seller is guaranteeing that the title is free from any defects or claims, even those that may have risen prior to their ownership.

On the other hand, a special warranty deed offers a more limited level of protection. 

It only guarantees that the seller has not done anything to impair the title during their ownership. 

So, with a special warranty deed, this means that the seller is only responsible for any defects or claims that may arise from their actions or omissions while they owned the property, and not any issues that may have existed before.

Special Warranty Deed Templates

A special warranty deed should clearly outline the warranties and guarantees that the seller is providing to the buyer. 

It should also include:

  • legal description of the property 
  • purchase price
  • date
  • names of the parties invovled
  • and any other relevant details of the transaction 

Keep in mind that like many real estate contracts, a special warranty deed may differ from one state to the next.

Above all, be sure that the special warranty deed is properly executed and notarized to make it legally binding.

Here are a few special warranty deed templates for you to use or provide more context on what should be included and what should be left out. 

Frequently Asked Questions: Special Warranty Deed

Next, we’ll take a look at the most commonly asked questions associated with a special warranty deed. 

Q: Can a special warranty deed be upgraded to a general warranty deed?

A: Yes, in some cases it may be possible to upgrade a special warranty deed to a general warranty deed. This can be done through a separate agreement between the buyer and seller.

Q: Can a special warranty deed protect against all claims or disputes?

A: No, a special warranty deed only covers the period of the seller's ownership. It does not protect against any issues that may have existed prior to the seller's ownership.

The Bottom Line: Special Warranty Deed

There you have it: a special warranty deed. 

While real estate fraud isn’t common, you don’t want to buy a property only to have someone else claim ownership from years or decades past. 

The truth is that a special warranty deed can be the difference between a profit or loss on your next real estate transaction.