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What is the difference between warranty and special warranty?
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.
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.
What is the difference between general warranty and special warranty in Colorado?
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.
Should I buy a house with a special warranty deed?
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.
What is the safest type of deed?
Warranty Deeds are used in most home sales between unrelated parties because they offer the most protection for buyers without established trust. If any title issues arise after a sale, a Warranty Deed ensures that the seller remains responsible. There are two types of Warranty Deeds: special and general.
Related Searches
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You can sell as a warranty deed but this means you are warranting clean title and the buyer can come back to you, you should only provide a warranty deed if theres a title company/title insurance being purchased.
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.
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RECORDERS NOTES
Special Warranty Deed: A Special Warranty Deed only warrants title relative to the time the current owner has owned the property.
Terminology Common to Estate and Business Succession
Aug 2, 2024 9. Special warranty deed - The grantor warrants title only against defects occurring during the grantors ownership but not before that time.
Warranty Period: The defect must have occurred within the first 12 months or 12,000 miles of vehicle ownership, whichever comes first. Defect Severity: The
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