Special Warranty Deed: Definition and Free Forms (U.S States)

Special Warranty Deed

A special warranty deed is described as a document that grants title ownership to a real estate owner from the period they purchased the property. By issuing this deed, the seller guarantees the buyer that no title defects took place at the time they owned the property. This document must be written in a unique language to ensure its validity. The seller in this context is referred to as the ‘Grantor’ while the buyer is the ‘grantee’. This deed makes the grantor accountable to title issues for the period they owned the property.

Names used for the special warranty deed

The special warranty deed comes by different names depending on the state. The following titles are used to refer to this document covenant deed, grant deed, limited warranty deed, or statutory warranty deed. All these titles refer to the same document.

When to use the special warranty deeds

This deed is used in negotiated cases where the grantee requires extra protection beside a quitclaim deed while the grantor is not comfortable with the liability linked to the warranty deed. Below are common uses of the special warranty deed.

  • In transferring property to a business
  • Transferring property to a trust
  • In selling multi-family or commercial properties
  • Transferring real estate to an individual purchasing title insurance for a property
  • In cases where the grantor doesn’t want to take liability for title issue that arose before they owned the property.

Free special warranty deed forms

Alabama Statutory (Special) Warranty Deed Form

How to craft a special warranty deed

The legality of the special warranty depends on the state laws. Some states dictate the language and the contents in the deed. When crafting the special warranty deed, it’s essential to know your state laws regarding this document. A standard special warranty deed should include the following:

  • A description of how the grantees shall; hold title in cases where we have more than one grantee.
  • A rational-legal description
  • The right formatting, i.e., page margins, notary acknowledgments signature blocks, and font size, etc.
  • A statement of consideration for the transaction or a statement that the deed lacks consideration.

When crafting a special warranty deed, it’s essential to understand the requirements of your state. You should know that a special warranty deed legalized in one state may be valid in another state. Seek the serves of a competent attorney to design the right document according to your state’s laws.

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