By
Builders, foreclosure companies, and some individuals, give a special warranty deed. Many resale Contracts, including the NVAR Contract, calls for a General Warranty Deed. So, what’s the difference?
You can think of it this way:
With a general warranty deed the Seller is confirming to the Buyer that they have the right to sell the house and everyone before them had the right as well. With a special warranty deed, the Seller is confirming they have the right to sell the house, but they have no idea about anything before them.
Bottom line:
As long as the Buyer gets an owner’s title insurance policy it is a distinction without a practical difference, because if there is a title issue relating to a prior owner, the title policy is most likely going to cover that prior owner problem. It has no impact on the settlement process.
This article is not intended to provide legal advice. This email does not create an Attorney-Client relationship, and nothing set forth herein is to be construed as legal advice or as a substitute for the advice of a duly licensed attorney. Seek legal counsel from an attorney admitted to practice in your jurisdiction if you need legal advice or representation.
