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SPECIAL warranty deed texas

Using a Special Warranty Deed in Texas, the seller who currently owns the property guarantees they have not faced any title issues during the time of his or her ownership of the property.

Good to know: The “warranty” in a Warranty Deed is a warranty of title, and not a warranty of property condition. The seller is promising he or she owns the property without liens. The seller is not promising the property is in good condition, such as the foundation, plumbing, roof and other items. If a Seller wants to sell the property “AS IS”, a special clause needs to be added to the deed.

Note: If the history of the property is unclear, it is advisable to avoid a Special Warranty Deed. We recommend using the General Warranty Deed when possible.

What is a Special Warranty Deed

A Special Warranty Deed transfers property title but it limits the seller’s guarantees or warranties against title defects. Using this deed limits the seller’s liability for claims against the property only to the time period of his or her ownership.

This deed differs from the General Warranty Deed which provides unlimited express and implied warranties for all time.

We recommend that you do not use a Special Warranty Deed unless the parties know and trust each other OR a title company has conducted a title search verifying the seller owns the property and there are no liens or other encumbrances on the property.

For example, if you own the property and want to transfer it to your son, daughter, spouse or to your LLC, you can use a Special Warranty Deed.

Board Certified in Residential Real Estate Law in Texas. For Texas Property Deeds
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Good to know:  Using the words “grant, sell, and convey” in a deed gives implied warranty. Certain warranties are implied in most deeds.

For example, that the grantor currently owns the property being sold and that there are no undisclosed liens on the property. Implied warranties are unwritten and are imposed by Texas law.

On the other hand, express warranties are in addition to the implied warranties and may be oral or written

Limits or restrictions of Special Warranty Deeds:

  • The seller only warrants title from the time he or she acquired ownership of the property.
  • As such, the seller is guaranteeing that a buyer will not be subject to legal action or title issues that arose during seller’s ownership of the property.
  • A seller must defend against undisclosed defects that occurred during the time of his or her ownership of the property.

To summarize, a Special Warranty Deed states that there were no claims against the property title during the time when the seller or grantor owned it.

On the other hand, a General Warranty Deed states that there were no title defects at any point in time.

Difference between a Special Warranty Deed and a General Warranty Deed

The important difference between a special warranty deed and a general warranty deed is the length of time the property title is warranted or guaranteed.

While a general warranty deed warrants against title defects even if those defects existed prior to the seller’s ownership, a special warranty is more limited.

For example, the special warranty deed does not offer protection for claims which happened prior to the seller’s ownership. This deed only warrants that the title is clear from claims which may have occurred during the time period of the current seller’s ownership

Subsequently, this deed does not guarantee an “unbroken chain” of title. A general warranty deed would be needed to make this guarantee.

Board Certified by the Texas Board of Legal Specialization in Residential Real Estate Law in Texas. For Texas Property Deeds.
American Bar Association for Texas Property Deeds
AV Preeminent rating for Texas Property Deeds
Member of the State Bar of Texas for Texas Property Deeds
Dallas Bar Association

SPECIAL Warranty Deed prepared for $195

Do you have questions about a Special Warranty Deed? Call and speak directly with attorney Scott Steinbach at 972-960-1850. Or email him at scott@texaspropertydeeds.com

R. Scott Steinbach is licensed in the state of Texas. Board Certified by the Texas Board of Legal Specialization in Residential Real Estate Law. AV Preeminent rated by Martindale-Hubble. Peer rated for Highest Level of Professional Excellence.

Texas Property Deeds is a service of The Steinbach Law Firm.

The Steinbach Law Firm is a Texas Real Estate Law Firm. We prepare all documents for any real estate transaction in Texas.

Board Certified in Residential Real Estate Law in Texas. For Texas Property Deeds
The Steinbach Law Firm for Texas Property Deeds