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.
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:
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.
SPECIAL Warranty Deed prepared for $195
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.