Rochelle Fitzgerald of Keller Williams Realty. Selling residential and luxury properties since 2004.
General Deed versus Special Warranty Deed!
General versus Special Warranty Deed!
A deed is a written document that conveys legal title to real property. There is no “standard form” for a deed. Texas does have, however, certain rules that apply if a deed is to be valid. For example, the intent to convey property must be clear from the wording; the property must be adequately described; and the deed must be signed and acknowledged by the grantor.
General Warranty Deed
A General Warranty Deed expressly warrants the entire chain of title, all the way back to the sovereign, and binds the Grantor to defend against any title defects, even if those defects were created prior to the Grantor's period of ownership.
Special Warranty Deed
In the case of a Special Warranty Deed, title is warranted only from the Grantor - and no further back than that. The Grantor's liability for title defects is, therefore, expressly limited to his/her period of ownership.
The Interplay Between Deeds & Title Insurance
The issue of whether the buyer will receive a General or Special Warranty Deed at times is contested. Even if the buyer obtains a General Warranty Deed, however, the buyer runs the risk that a title problem might arise after the seller has passed away, moved away, or become insolvent. There is little comfort in having a claim against someone who will not pay the claim. Fortunately, the buyer can obtain title insurance. A title insurance policy provides indemnity against many forms of title defects. If a covered problem arises, the buyer can make a claim on its insurance policy and the underwriter will either pay the cost to investigate and correct the problem, or compensate the buyer for the value of the loss.