Posted on: 22nd Feb, 2010 09:57 pm
we are buying a forclosure property and kind of scared as the seller will only provide us the special warranty deed.....we would like to know what would be the worst scenario or consequenses of this kind of deed.....please help
Hi Guest,
A special warranty deed provides only partial protection to the grantee. Through this type of warranty deed, the grantor guarantees that the title has been free from defects during the time he owned the property. If there had been any defect in the title to the property prior to the grantor's ownership, he will not protect the grantee against such defect. If you buy the property through a special warranty deed and any title defect, existing prior to the grantor's ownership, is found later, you will have to rectify it. The grantor will not provide any compensation to fix the defect to the title.
A special warranty deed provides only partial protection to the grantee. Through this type of warranty deed, the grantor guarantees that the title has been free from defects during the time he owned the property. If there had been any defect in the title to the property prior to the grantor's ownership, he will not protect the grantee against such defect. If you buy the property through a special warranty deed and any title defect, existing prior to the grantor's ownership, is found later, you will have to rectify it. The grantor will not provide any compensation to fix the defect to the title.
in other words - you want to avoid this if you can