Special Warranty Deed Overview:
A Special Warranty Deed, sometimes referred to as a Limited Warranty Deed is a type of real estate deed where the grantor (seller) warrants the title only against defects that arose during their ownership of the property. The grantor does not warrant against defects that existed before they acquired the property. This type of deed provides less protection to the grantee (buyer) compared to a general warranty deed, which offers a warranty against all title defects, regardless of when they arose.
Key Features of a Special Warranty Deed:
Limited Warranty: The seller guarantees that there are no legal claims or title defects that arose during their period of ownership, such as liens or encumbrances.
Risk to Buyer: The buyer accepts a higher risk with a special warranty deed because the protection is limited to the duration of the seller's ownership.
Common Use: This deed type is commonly used in commercial real estate transactions or in sales where the seller has owned the property for a brief period and therefore prefers not to provide a warranty for a time before they owned the property.
(Michigan SWD Package includes form, guidelines, and completed example)

Back to Michigan