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
Comments (18)Subscribe to CommentsComment