A valid special warranty deed in Arizona must conform to statutory requirements. A special warranty deed can be used in a real estate transaction when a grantor does not want to offer full covenants of warranty.

By the use of the words "grant" or "convey" in a real estate deed in Arizona, the following covenants are implied: (1) That previous to the time of execution of the conveyance, the grantor has not conveyed the same estate or any right, title, or interest therein to any person other than the grantee and (2) That at the time of execution of the conveyance, the estate is free from encumbrances (33-435). In a special warranty deed, the grantor warrants to defend the title only against the claims and demands of the grantor and those claiming by, through, or under the grantor.

To be eligible for recording, a special warranty deed must be signed by the grantor and must be duly acknowledged before an officer authorized to take acknowledgements in Arizona or in another state (33-401b). If acknowledged out of state, it can be done so before a notary public, a judge, clerk, or deputy clerk of a court of record, or any other person authorized to perform notarial acts in the state in which the act is performed (33-501).

Any document evidencing the sale or other transfer of real estate or equitable interest therein should be recorded by the transferor in the county where the property is located and within sixty days of the transfer (33-411.01). The act of recording a special warranty deed provides constructive notice to subsequent purchasers or encumbrance holders for valuable consideration without notice (33-411). An unrecorded special warranty deed will be valid and binding between the parties and their heirs, and as to all subsequent purchasers with notice thereof, or without valuable consideration (33-412).

(Arizona Special Warranty Deed Package includes form, guidelines, and completed example)

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