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.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A freehold estate represents ownership of real property with an indefinite duration.
Joint tenancy is a form of co-ownership in which two or more persons hold equal, undivided interests in property with the right of survivorship. When one joint tenant dies, their interest automatically passes to the surviving joint tenants.
A leasehold estate grants the right to possess and use property for a defined period of time, without conferring ownership.
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