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Transfer Of TitleTypes_of_deedsMEDIUM

A special warranty deed warrants title against defects arising:

Correct Answer

B) Only during the grantor's period of ownership

A special warranty deed (also called a limited warranty deed) warrants title only against defects or claims arising during the grantor's period of ownership. It does not protect the grantee against title defects that existed before the grantor acquired the property. This differs from a general warranty deed, which warrants title against all defects throughout the entire chain of title. Special warranty deeds are commonly used in New Mexico by trustees, executors, and corporate grantors.

Answer Options
A
Throughout the entire chain of title, back to the original grant
B
Only during the grantor's period of ownership
C
Only after the sale is completed and recorded
D
Only when the grantor is a corporation or business entity

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Related Topics & Key Terms

Related Topics:

institutional-sellers

Key Terms:

special warranty
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