Prescott Valley Arizona Real Estate Home Buyers Center.

Prescott AZ Real Estate Special Warranty Deed

April 11th, 2007

What sets a special warranty deed apart from the general warranty deed is that it does not offer a Prescott AZ real estate buyer, or any other buyer of property the level of protection that the general warranty offers.

The purpose of a deed is that it is the tool that is used to transfer the ownership interests in a property from one person to another in transferring of the title. Due to the typically expensive nature of real estate in comparison to most other items we purchase like cars, clothing, furniture and the such, it’s crucial to insure that the real property we are acquiring can truly be transferred to us in the first place.

Special warranty deeds typically warrant that the grantor has title to the real property. It also limits the grantor’s liability to encumbrances such as mortgages, leases, easements, liens, or restrictions that would make the title defeasible that occurred after he or she acquired the title.

When is the Special Warranty Deed used

Typically this warranty is used by persons acting on the behalf of the owner such as custodians, administrators, or executors.

Let’s say that a person files for bankruptcy and the real property needs to be sold to satisfy creditors. The trustee that has been assigned to manage the financial processes during this time would proceed to give a special warranty deed to the buyer of the property, thereby guaranteeing the title against claims that came to be only during the period of time that the trustee held the title.

Chances are that when you are acquiring your Prescott real property, the previous owner will pass title with a general warranty deed, although, if the property is going through a foreclosure sale or any other type of involuntary sale, you may very well indeed receive the title to the property through a special warranty deed.

Additionally, the grantor can include additional warranties by specifically stating them in the deed.

Entry Filed under: Prescott Arizona AZ Real Estate Market