Posted on: 14th Mar, 2010 02:33 pm
I co-own a property and am transfering the property to the other person. She wants a General Warrenty deed and I am offering a Special Warrenty deed. If there was an issue before I owned it will the title title insurance I bought when I purchased the property cover that?
Hi creequaker,
A special warranty deed provides limited assurances. By signing this deed, the seller is not responsible for correcting title defects or any visible or invisible encumbrances that were present when the seller received the property. Thus, if you sign this deed, you won't be responsible for the title defects.
Thanks
A special warranty deed provides limited assurances. By signing this deed, the seller is not responsible for correcting title defects or any visible or invisible encumbrances that were present when the seller received the property. Thus, if you sign this deed, you won't be responsible for the title defects.
Thanks
Thank you. If, however, I sign a General Warrenty deed and a defect is found sometime in the future - will the title insurance - have on the property cover it....even after it is sold?
Hi Cree!
Welcome back to forums!
With a General Warranty Deed, the grantor of the property can pass on to the grantee only such title as he or she holds. If the title fails, the purchaser may bring a lawsuit against the grantor. However, the chances of recovery are dependent upon the financial ability of the grantor.
Feel free to ask if you've further queries.
Sussane
Welcome back to forums!
With a General Warranty Deed, the grantor of the property can pass on to the grantee only such title as he or she holds. If the title fails, the purchaser may bring a lawsuit against the grantor. However, the chances of recovery are dependent upon the financial ability of the grantor.
Feel free to ask if you've further queries.
Sussane