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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.
What is a special warranty deed in NC?
The seller warrants these covenants to the buyer against any claims made by any person from the beginning of time. In contrast, the seller in a special warranty deed only warrants title against any person who claims to have title to the property by, through, or under the seller.
Whats the difference between a warranty deed and a special warranty deed?
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.
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.
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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.
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.
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.
special warranty deed north carolina
Incremental Sampling Methodology
This material was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor any agency
Does. Does not include the primary residence of the Grantor. NORTH CAROLINA SPECIAL WARRANTY DEED. THIS DEED made this. day of. 20. by and between. GRANTOR.
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