Colorado special warranty 2025

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In short, the distinction between the two forms of warranty deeds is that in a general warranty deed, the seller warrants against anything any owner of the property ever did to encumber title and in a special warranty deed the seller only warrants against anything the seller did to encumber title.
A special warranty deed guarantees two things: The grantor owns, and can sell, the property; and the property incurred no encumbrances during their ownership. A special warranty deed is more limited than the more common general warranty deed, which covers the entire history of the property.
You may wonder if you can ever convert a limited warranty deed to a general warranty deed. You cannot convert what the grantor gives you. However, if you receive a property via limited warranty deed and then choose to sell it, its up to you as to what kind of guarantees you want to make to your buyer.
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.
Buying a house with a special warranty deed can be a viable option, but its essential to understand the implications and the steps to take to protect your interests. This type of deed provides limited protection, covering only the period when the seller owned the property.
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The main difference between these deeds is that general warranty deeds apply to the entire history of a piece of land while special warranty deeds only cover the period of time that the previous owner (the grantor) has held the land. As such, special warranty deeds offer fewer protections to a grantee.

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