A Virginia title attorney is reviewing a transaction in which the seller is conveying a commercial property that was acquired through a tax sale five years ago. The seller agrees to warrant only against claims arising from her own actions during the five years she has owned the property, but not against any prior tax sale irregularities or earlier defects. Which deed type reflects this agreement?
Correct Answer
C) Special warranty deed
A special warranty deed is precisely the instrument that limits the grantor's warranty to defects or encumbrances arising during the grantor's period of ownership. In this scenario, the seller is willing to warrant against anything she caused or allowed during her five-year ownership but not against defects from the prior tax sale or earlier history. This is the classic use case for a special warranty deed in Virginia commercial transactions.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The bundle of rights describes the rights associated with property ownership, allowing owners to use, control, enjoy, exclude others from, and dispose of the property.
Community property is a form of ownership recognized in certain states where property acquired during marriage is considered equally owned by both spouses, regardless of who earned the money or whose name is on the title.
Condominium ownership involves owning a unit of airspace within a multi-unit building plus an undivided interest in the common elements shared with other unit owners. Each unit is separately taxed and financed.
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