Margaret is purchasing a foreclosed property in Hartford from a bank that acquired it through Connecticut's strict foreclosure process. The bank's attorney informs Margaret that the bank will convey title using a deed that warrants title only against claims arising from the bank's own acts, but not against any prior title defects. Which type of deed is the bank most likely using?

Correct Answer

D) Special warranty deed

A special warranty deed contains covenants by which the grantor warrants title only against defects or claims arising from the grantor's own acts or omissions during the period of the grantor's ownership. Banks and institutional sellers in Connecticut commonly use special warranty deeds when conveying foreclosed properties because they are unwilling to warrant against title defects that may have existed before they acquired the property through strict foreclosure.