What is the primary purpose of a Special Warranty Deed?

A Special Warranty Deed is specifically designed to provide limited protections to the grantee by guaranteeing that the grantor holds title to the property and has the right to convey it, but only during the time period that the grantor owned the property. This means that the grantor is not responsible for any claims or issues that may have arisen prior to their ownership, which is why doubts about the grantor's actual interest can be addressed through this type of deed.

This type of deed indicates that the grantor will defend the title against claims only that originated during their period of ownership. Thus, it creates a level of assurance for the grantee while not extending absolute warranties as seen in a General Warranty Deed. Such limitations help clarify the extent of the grantor’s responsibilities and the scope of the title being conveyed, making it essential for parties involved in real estate transactions to understand the implications of a Special Warranty Deed. This is particularly relevant in cases where grantees seek to ascertain the quality of the title they are receiving.