Special offer

At Closing The Title Will be Conveyed via "Special Warranty Deed"

By
Real Estate Agent with ProStead Realty

Today I was working with buyers and they had interest in a foreclosure.  Prior to the showing I had researched the property and noted that upon closing the title will be conveyed via "Special Warranty Deed."  Of course my clients wanted to know what this meant for them.

The business definition is...

Special Warranty Deed

"a deed in which the grantor limits the title warranty given to the grantee to anyone claiming by, from, through, or under him, the grantor. The grantor does not warrant against title defects arising from conditions that existed before he owned the property.

Example: Because of bankruptcy of its owner, a property goes under trusteeship. When the property is sold to satisfy creditor claims, the trustee conveys a special warranty deed to the buyer. This provides the buyer with warranty against claims incurred only during the time the property was held by the trustee."

I informed my clients that this is why they will have the closing attorney do a title search prior to closing as well as get title insurance at closing for themselves and the lender's loan.

Judith Parker, CRS, GRI

Keller Williams

www.CharlotteHomeInfo.com

jparker@kwcharlotte.com

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Comments (18)

Michael Kitsch
Coldwell Banker - Katy, TX
Thanks for the post
Feb 24, 2011 02:45 PM
Clayton Bonjean
Mainsail Realty Company - Santa Rosa Beach, FL
Broker | Owner | MBA

Hi Judith,


Good post.  I work with alot of REO properties and all of my buyer clients question the Special Warranty deed. I normally have them call the title company for an explanation.  Your explanation is excellent.


Best,


Clayton

Feb 24, 2011 02:46 PM
Judith Parker
ProStead Realty - Charlotte, NC
CRS, GRI, CMRS, Charlotte, NC

Hi Cheryl, you are very welcome.  I shared it with my clients today and thought that it is a good thing to share with my ActiveRain family.

Feb 24, 2011 02:58 PM
Judith Parker
ProStead Realty - Charlotte, NC
CRS, GRI, CMRS, Charlotte, NC

Hi Clayton, thank you and you are welcome.  I thought that this was a great explanation and example for foreclosures were used.  Thanks for your comment.

Feb 24, 2011 03:00 PM
Jeanne Kozak
RE/MAX In Action - Martinsburg, WV
REALTOR and Broker/Owner in WV and VA

Nice simple explanation, and hopefully all buyers of foreclosures are getting owners as well as the lenders title insurance, such a small cost to insure a large investment 

Feb 24, 2011 03:36 PM
Judith Parker
ProStead Realty - Charlotte, NC
CRS, GRI, CMRS, Charlotte, NC

Hi Jeanne, thanks for taking the time to comment on my post.  I so appreciate it. 

Feb 24, 2011 03:44 PM
Rob Thomas
Prestige Homes of The Tri Cities, Inc. CALL....423-341-6954 - Bristol, TN
Bristol TN-VA & Tri Cities Agent, ABR, GRI, e-Pro

Judith....You explained it perfectly....Nice post!
Hope you have a great day!---Rob

Feb 24, 2011 10:16 PM
Connie Goodrich
Keller Williams Realty - McKinney, TX
CRS ABR (McKinney Realtor)Texas

Nice explanation as we will run up against such tilte held issues in our business, especially during these weak economy times!  Make it a wonderful day!

Feb 24, 2011 11:34 PM
Belinda Spillman
Aspen Lane Real Estate Colorful Colorado - Aurora, CO
Colorado Living!

Hi Judith.  I see these sometimes when one of the owners is deceased.  It is never easy to explain these things to buyers.  Good job on a closing.

Feb 25, 2011 12:13 AM
Judith Parker
ProStead Realty - Charlotte, NC
CRS, GRI, CMRS, Charlotte, NC

Good morning Rob, thanks for your words of encouragement and for taking time to comment.  You have a great day as well.

Feb 25, 2011 12:47 AM
Judith Parker
ProStead Realty - Charlotte, NC
CRS, GRI, CMRS, Charlotte, NC

Good morning Connie, I agree that we will being seeing more of this type of title with so many foreclosures being released to the market.  Have a wonderful day!

Feb 25, 2011 12:49 AM
Judith Parker
ProStead Realty - Charlotte, NC
CRS, GRI, CMRS, Charlotte, NC

Hi Belinda, I find that the simpler I can make the explanation the easier and better my clients understand.  Thanks for your kind words of encouragement and have a super day!

Feb 25, 2011 12:50 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hi Judith,  Great post.  People need to be educated about what title work means,  you explain it great!

Feb 25, 2011 01:18 AM
Judith Parker
ProStead Realty - Charlotte, NC
CRS, GRI, CMRS, Charlotte, NC

Good morning Will, thank you for you very kind comment and I am glad that I explained it well.  Short and to the point.  Have a great day!

Feb 25, 2011 01:22 AM
Denise Roberts
New Colony Properties, LLC - Pinehurst, NC
e-PRO, REALTOR - Specializing in Pinehurst, NC Area

Very Informative Post for those out there purchasing bank-owned homes!  I just had to explain this to a young buyer couple of mine who contracted a foreclosure.  I, also, referred them to the closing attorney for a confirmed explanation!  Have a great weekend!

Feb 25, 2011 04:59 AM
Judith Parker
ProStead Realty - Charlotte, NC
CRS, GRI, CMRS, Charlotte, NC

Hi Denise, thanks for commenting on my post.  I so appreciate it.  These questions come up and it is important to have answers.  Having them speak to the closing attorney is a great idea as well.  Have a great week-end!

Feb 25, 2011 09:11 AM
Not a real person
San Diego, CA

I can vouch for how wonderful it is to have title insurance when you need it, not that you should need it, but if you do……….

Mar 16, 2011 03:41 PM
Judith Parker
ProStead Realty - Charlotte, NC
CRS, GRI, CMRS, Charlotte, NC

Hi Russel, title insurance is oh so important.  It is a must and one never knows.  Thanks for your comment...I do appreciate it.

Mar 16, 2011 05:12 PM