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Property OwnershipDeed_typesHARD

A Michigan real estate agent is explaining deed warranties to a client. Which of the following statements about a special warranty deed in Michigan is NOT accurate?

Correct Answer

C) It provides the buyer with no recourse against the grantor for any title defects whatsoever

The statement that a special warranty deed provides 'no recourse against the grantor for any title defects whatsoever' is NOT accurate. A special warranty deed does provide the buyer with recourse against the grantor — but only for title defects or claims that arose during the grantor's period of ownership. If the grantor created or allowed a defect during their ownership, the buyer can hold the grantor liable under the limited warranty. It is a quitclaim deed, not a special warranty deed, that provides absolutely no recourse against the grantor.

Answer Options
A
It is commonly used by developers, lenders, and fiduciaries who want to limit their warranty exposure
B
It warrants title only against claims arising during the grantor's period of ownership
C
It provides the buyer with no recourse against the grantor for any title defects whatsoever
D
It offers less title protection to the buyer than a general warranty deed

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Related Topics & Key Terms

Key Terms:

deed_typesspecial_warranty_deedwarranty_scopebuyer_recoursedeed_comparison
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