A Virginia couple divorces, and pursuant to the divorce decree, the husband must convey his interest in the marital home to his wife. The husband's attorney recommends using a deed that releases his interest without making any title warranties, to protect the husband from future liability for any title defects. The wife's attorney objects, arguing that the wife should receive at minimum a limited warranty. The parties ultimately agree on a deed that warrants title only against claims arising from the husband's actions during the marriage. Which deed type reflects this compromise?
Correct Answer
C) Special warranty deed, limiting the warranty to the husband's period of ownership
The parties' compromise — warranting only against claims arising from the husband's own actions during the marriage (his period of ownership) — is precisely the scope of a special warranty deed. A special warranty deed limits the grantor's warranty to defects arising during the grantor's period of ownership and is a common compromise in divorce conveyances where the grantor is unwilling to provide a full general warranty but the grantee wants some protection. This is a Virginia-specific application that frequently appears on the state exam.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
In a cooperative (co-op), the building is owned by a corporation, and residents purchase shares of stock in the corporation that entitle them to a proprietary lease on a specific unit. Residents are shareholders, not property owners.
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