Special Warranty Deed

Special Warranty Deed (“Bargain and Sale Deed”)

A special warranty deed, also known as a “bargain and sale deed,” promises only that the seller has not encumbered the marketability of the property during his or her ownership period.  It is possible that a legal claim could come up in the future that predates the ownership of the seller.  In such a case, the buyer may not have recourse against the seller.

  • Example : Ryan is selling his property to Kevin.  Jane, the previous owner who held ownership prior Ryan, failed to pay her property taxes for several years.  The county has perfected a lien against the property for taxes due.  Ryan does not have to disclose this to Kevin in a special warranty deed because Ryan did not incur the property taxes during his ownership period.  Therefore, payment of that tax lien can become Kevin’s responsibility when he signs the deed.
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