Let’s take a look at the main differences between a Special Warranty Deed and a General Warranty Deed and why we hands down prefer the General Warranty Deed in property transactions.

The only two deeds that I’m ever comfortable using are a Special Warranty deed or a General Warranty deed.

Keep in mind, there are other types of deeds such as a Quit Claim deed. This is typically used
when someone just wants to relinquish ownership to a property. Generally they’re used in divorce situations. I would never accept a Quick Claim deed because there is no protection on the title
from any encumbrances or defects to the title. In addition, a title company won’t accept a Quick Claim deed, so I’m only comfortable using a Special Warranty deed or a General Warranty deed.

So what are the differences between the two? A General Warranty deed is the best type of deed because not only is it guaranteeing that the property’s title is clear from any defects or encumbrances from the ownership of the current
owner, but also from any past owners. Whereas a Special Warranty deed is only guaranteeing that the property’s title is free from any defects or encumbrances from the duration of when the current owner has owned the property.

Now, of course, you always want to get title insurance as well and title insurance should cover any issues that come up. But, keep in mind, title companies are in the business of collecting premiums not paying out for claims.

So whenever buying a property, I prefer to hopefully get a General Warranty deed from the seller. I’m not going to let this be a deal killer because sometimes sellers will only want to offer a Special Warranty deed.

Of course, we always recommend that you consult an attorney as well.

Feel free to reach out to us with questions or other topics you’d like to see covered.

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