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What is Special Warranty Deed?

The house I am buying is a foreclosure by the Bank. I was reading the contract and it says, its a 'Special Warranty Deed' instead of 'Regular Warranty Deed'. What exactly does it mean? Do I need to be concerned?

I searched online and find some legal jargon, can anyone provide some insight?

Here's what I found

The North Carolina Bar Association Form Special Warranty Deed states as follows:

"And the Grantor covenants with the Grantee, that Grantor has done nothing to impair such title as Grantor received, and that Grantor will warrant and defend the title against the lawful claims of all persons claiming by, under or through Grantor except for the exceptions hereinafter stated."

 
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March 16 2011 - US
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Answers (4)

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May 13 2013
Special warranty deed limits the seller's warranty only for the time the seller owned the property. In general warranty deed, on the other hand, seller will warranty title problems not only during his/her ownership but throughout the chain of ownership. It is not uncommon to get  a special warranty deed when buying a foreclosure. You should not be concerned.
I suggest that you hire a real estate attorney or title company of your choice to have them check all closing documents. Good luck!
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March 16 2011
A general warranty deed is your best deed...it covers the deed all the way back to the beginning.  My boss likens it to the Sears Craftsman Warranties.  No matter when you buy a Sears Craftsman tool...you can always return it, no questions asked.  A special warranty deed covers the deed only while the seller owned the property.  My boss likens this type of deed to the Best Buy Warranty...certain conditions apply.  It is very important that you ask for a title search and title policy (and, a buyer pays for this).  Your Realtor will be able to lead you through the process.  I hope this helps.  I know my boss' analagies really help me!
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March 16 2011

That is the only type of warranty deed that any bank will issue. A real estate attorney can give you legal advice in that regard, however, that is the only type of deed you will be granted. I purchased a foreclosed property 4 years ago and have not had any issues concerning title if that helps.

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March 16 2011
 
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