What is a special warranty deed commonly used for?

A special warranty deed is specifically designed to transfer ownership of real property while providing a limited guarantee regarding the title. This type of deed is often used in the sale of real estate where the seller is only willing to guarantee that there have been no title issues occurring during their period of ownership, not before.

The key aspect of a special warranty deed is that it protects the buyer from any potential claims against the property made during the seller's ownership, but it does not cover any claims or issues that arose prior to the seller taking title. This limited liability is what distinguishes it from a general warranty deed, which provides a broader guarantee regarding title history and ownership rights.

In contrast, other types of deeds might either provide no guarantees at all or assert complete ownership rights. The special warranty deed strikes a balance, making it suitable for various real estate transactions, particularly in commercial or residential sales where the seller might not want to assume full liability for potential claims that occurred before they owned the property.