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SPECIAL WARRANTY  Form

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What is the special warranty?

A special warranty is a type of deed used in real estate transactions. It provides a guarantee from the seller to the buyer that the property has not been encumbered by any claims or liens during the time the seller owned it. Unlike a general warranty deed, which covers the entire history of the property, a special warranty deed limits the seller's liability to only the period of their ownership. This means that if any issues arise from previous owners, the seller is not responsible for resolving them.

Key elements of the special warranty

The special warranty deed includes several critical elements that define its legal standing and implications:

  • Grantor and Grantee: The deed must clearly identify the seller (grantor) and the buyer (grantee).
  • Property Description: A detailed description of the property being transferred is essential for clarity.
  • Warranty Clause: This clause specifies that the seller warrants the property against any claims arising during their ownership.
  • Signatures: Both parties must sign the document for it to be legally binding.
  • Notarization: While not always required, notarization can enhance the document's validity in many jurisdictions.

Steps to complete the special warranty

Completing a special warranty deed involves several straightforward steps:

  1. Gather Information: Collect all necessary information about the property, including the legal description and details about the parties involved.
  2. Draft the Deed: Use a template or consult a legal professional to draft the special warranty deed, ensuring all key elements are included.
  3. Review the Document: Both parties should review the deed to ensure accuracy and completeness before signing.
  4. Sign the Deed: Have both the grantor and grantee sign the document in the presence of a notary, if required.
  5. File the Deed: Submit the signed deed to the appropriate local government office to officially record the transfer of property.

Legal use of the special warranty

The special warranty deed is legally recognized in the United States, but its enforceability can vary by state. It is commonly used in residential real estate transactions, especially when the seller wants to limit their liability for past issues. Buyers should understand that while they have some protection under a special warranty deed, they may still need to conduct due diligence, such as title searches, to uncover any potential problems that existed before the seller's ownership.

How to obtain the special warranty

Obtaining a special warranty deed typically involves the following steps:

  • Consult a Real Estate Attorney: It is advisable to seek legal guidance to ensure the deed complies with state laws.
  • Access Templates: Many legal websites and resources offer templates for special warranty deeds that can be customized.
  • Engage a Title Company: A title company can assist in preparing and filing the deed, ensuring all legal requirements are met.

State-specific rules for the special warranty

Each state may have unique regulations regarding the use and execution of special warranty deeds. It is important to be aware of these variations, as they can affect the validity of the deed. Some states may require specific language to be included, while others may have different notarization or recording requirements. Consulting local laws or a real estate professional can provide clarity on these state-specific rules to ensure compliance.

Quick guide on how to complete special warranty

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