A.CRE

Limited Warranty Deed

See Special Warranty Deed.

Frequently Asked Questions about Limited Warranty Deeds

A Limited Warranty Deed, also known as a Special Warranty Deed, is a type of deed in which the seller warrants that they have not caused any title issues during their ownership of the property, but does not guarantee against defects in title that may have existed before their ownership.

Yes. The terms “Limited Warranty Deed” and “Special Warranty Deed” are used interchangeably and refer to the same legal instrument. Both provide a limited warranty of title protection to the buyer.

A General Warranty Deed offers full title protection, covering the property’s entire history. In contrast, a Limited Warranty Deed only covers title issues that arose during the current seller’s ownership.

Limited Warranty Deeds are commonly used in commercial real estate transactions or in cases where the seller wants to limit liability, such as during foreclosure resales or when transferring property from a trust or estate.

Buyers should understand that a Limited Warranty Deed offers less protection than a General Warranty Deed. Title insurance and a thorough title search are especially important when accepting a Limited Warranty Deed to mitigate risk from past title defects.

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