Special Warranty Deed

What Is a Special Warranty Deed?

A special warranty deed (sometimes called a limited warranty deed) provides a middle ground between a general warranty deed and a quitclaim deed. The grantor warrants that they have not caused any title defects during the time they owned the property, but they make no guarantees about what happened before they acquired it.

If a lien, encumbrance, or claim arose before the grantor's ownership, the grantee cannot hold the grantor responsible. The grantee's protection against pre-existing defects comes from title insurance, not from the deed.

Florida Legal Context

Special warranty deeds are commonly used in Florida for specific types of transactions where the grantor cannot reasonably guarantee the entire title history:

• Bank-owned (REO) sales — Banks that acquire property through foreclosure typically convey using a special warranty deed because they only controlled the property from the date of the foreclosure judgment forward.
• Estate and probate transfers — A personal representative selling estate property may use a special warranty deed because they did not personally own the property and cannot warrant its full history.
• Corporate and entity transfers — When an LLC, corporation, or trust sells property, the entity may limit its warranty to its own period of ownership.
• Commercial transactions — Sophisticated buyers and sellers sometimes negotiate special warranty deeds with the understanding that title insurance will cover pre-existing defects.

Like all Florida deeds, a special warranty deed must be signed by the grantor, witnessed by two witnesses, notarized, and recorded with the county clerk under Chapter 695, Florida Statutes.

General Warranty Deed vs. Special Warranty Deed

• General warranty deed — Grantor warrants against all title defects, including those that existed before the grantor acquired the property. Strongest protection for the buyer.
• Special warranty deed — Grantor warrants only against defects that arose during their ownership. The buyer relies on title insurance for earlier defects.

In a standard Florida residential sale between individuals, the buyer should expect a general warranty deed. Receiving a special warranty deed in an arm's-length sale should prompt the buyer's attorney to ask why the seller is unwilling to provide full warranties.

Related Terms

• Warranty Deed — Full covenants covering the entire title history
• Quitclaim Deed — No warranties at all
• Deed in Lieu of Foreclosure — Often conveyed via special warranty deed
• Title Insurance — Covers defects the special warranty deed does not
• Chain of Title — The history the special warranty only partially covers

Barnes Walker Deed Guidance

Barnes Walker's real estate attorneys advise buyers on the type of deed being offered and whether additional protections are needed. If you are receiving a special warranty deed in a purchase, the firm can ensure your title insurance policy adequately covers the warranty gap. Submit a title inquiry for assistance.

Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC