National Real Estate Exam (PSI)Transfer of TitleMedium
A seller conveys property using a special warranty deed. Under this deed, the seller is guaranteeing that:
- AThe property is free of all liens, even those created by prior owners
- BNo title defects arose during the seller's own period of ownership
- CThe buyer will never face any title claims whatsoever
- DNo title defects exist from any time in history
Show answer & explanationAnswer & explanation
Correct answer: B. No title defects arose during the seller's own period of ownership
A special warranty deed limits the grantor's warranty to defects or encumbrances that arose only while the grantor held title; it makes no promises regarding defects from before the grantor's ownership.
Why the other options are wrong
- A. Liens created by prior owners are not covered under a special warranty deed.
- C. No deed can guarantee a total absence of future claims.
- D. That broader promise describes a general warranty deed.
Special Warranty Deed
A deed in which the grantor only warrants against title defects that occurred during their own ownership, not before.
- Often used in commercial transactions
- Less protection than a general warranty deed
- Grantor is not liable for defects from prior owners
Memory trick: 'Special' = only special to 'my time', not before.