Special Warranty Deed: Fill & Download for Free

In order to understand a quit claim deed you need to understand the most common form of deed, the warranty deed. A warranty deed is like it sounds. The person signing the warranty deed warrants that they have good title to the property. So, if there is a defect in the title the person selling the property is liable. (As are other people in the chain of title that gave a warranty deed.)A quit claim deed is totally without warranty. It basically says, “whatever I’ve got I’m conveying to you.” In all my years of practice, I can’t ever remember using a quit claim deed. Why? Title companies abhor them. They often trigger an exception in a title report that may require additional premium to insure around. So, in a divorce typically a “special warranty deed” is used where the warranty is only title from spouse to spouse.If I were representing a buyer generally I’d recommend against accepting a quit claim deed. If I’m representing a seller, I could see possibly some reasons to use one, but generally most situations can be handled with a special warranty deed. If you’re in a transaction the best person to ask is the underwriter at the title company that insures title. They can tell you if they will insure title with a quit claim deed.

These days almost all deeds that have warranty will be special warranty deeds, where upon sale the seller only vouches for what transpired during their ownership. With a general warranty deed, that warranty would require the seller to be accountable for all encumbrances to the property going back in time for all owners - sellers just don't offer such deeds as a common practice.

Disclaimer: I’m not a lawyer, so this isn’t legal advice.A deed is a document showing the transfer of ownership.From Investopedia:A property deed is a written and signed legal instrument that is used to transfer ownership of real property from the old owner (the grantor) to the new owner (the grantee).There are different types of deeds. A “general warranty” deed is the best. It’s the most comprehensive. A “special warranty” deed is somewhat more restrictive and provides the new owner less protection.A “quit claim” deed—while it has plenty of valid uses—is the weakest. It’s basically a person saying: “I transfer any rights I may have in the property to you.” Someone could give you a perfectly legal quit claim deed to the Statue of Liberty. It doesn’t matter whether the person actually owns it (except from a frauds standpoint). All that matters is that the person is transferring any right he/she may/may not have. For more information, see Understanding Property Deeds.