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Special Warranty Deeds are frequently used in commercial real estate transactions and foreclosure sales. In commercial transactions, sellers might prefer this type of deed to limit their liability to issues they directly caused.
Can I file a warranty deed myself?
As a property owner and grantor, you can obtain a warranty deed for the transfer of real estate through a local realtors office, or with an online search for a template. To make the form legally binding, you must sign it in front of a notary public.
Who prepares a special warranty deed?
Preparation of the Deed: The seller prepares the warranty deed, detailing the grantors and grantees information, the legal description of the property, and the statement of conveyance.
What are the risks of a special warranty deed?
When a buyer purchases property under a special warranty deed, there is the possibility that a prior creditor or owner could make a claim against the property. The best way to protect yourself as a buyer is to buy title insurance when you purchase the property.
Why would a seller want a special warranty deed?
A special warranty deed is a type of real estate deed used to transfer property ownership from one person to another. By using this particular deed, the seller is guaranteeing to the buyer that there are no defects or problems with the property title during the time that they owned the property.
What are the disadvantages of a special warranty deed?
The main disadvantages include limited protection for buyers, who may inherit claims or issues from before the sellers ownership. Buyers must investigate the propertys history, which could lead to unexpected costs or unresolved liens.
Is a special warranty deed proof of ownership?
In reality, a warranty deed does not directly prove ownership but guarantees that the property is free of liens and that the seller has the legal right to sell the property. This guarantee provides a significant level of protection for the buyer, facilitating a smooth and secure transfer of property ownership.
How common are special warranty deeds?
Special warranty deeds are common in commercial real estate transactions. However, sellers may also use them in residential sales, especially in cases where the seller is a bank or other financial institution.
Related links
Special Warranty Deed
GRANTOR CONVEYS THE PROPERTY TO GRANTEE AS IS, WHERE IS AND WITH ANY. AND ALL FAULTS. OTHER THAN THE SPECIAL WARRANTY OF TITLE PROVIDED HEREIN. WITH RESPECT
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