Patricia is selling her Bridgeport investment property to an LLC. She has owned the property for 12 years and is aware of a minor encroachment from a neighboring fence that was present when she purchased the property. Patricia's attorney advises her to use a deed that limits her warranty only to acts occurring during her 12-year ownership period, so she is not responsible for the pre-existing encroachment. Which deed type does Patricia's attorney recommend?
Correct Answer
D) Special warranty deed
A special warranty deed is exactly what Patricia's attorney recommends. It limits the grantor's warranty to defects, encumbrances, or claims that arose during the grantor's own period of ownership. Since the fence encroachment predates Patricia's ownership, a special warranty deed would protect her from liability for that pre-existing condition while still warranting against any title defects she may have created during her 12 years of ownership. This is a common choice for sellers who are aware of pre-existing title issues.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A life estate is a freehold estate that grants ownership rights for the duration of someone's life.
Real property is immovable land and anything permanently attached to it, while personal property (also called chattels) is movable.
Tenancy by the entirety is a form of co-ownership available only to married couples that includes the right of survivorship and protection from individual creditors. Neither spouse can unilaterally sell or encumber the property.
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