Escrow & Title

A special warranty deed in Arizona differs from a general warranty deed in that:

AIt provides broader warranty coverage

BThe grantor warrants only against defects arising during the grantor's ownership✓ Correct

CIt is used only for residential property

DIt requires court approval

Explanation

A special warranty deed (also called a limited warranty deed) only warrants title against defects that arose during the grantor's period of ownership, not against prior title defects.

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Key Terms to Know

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Title Insurance

Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.

Chain of Title

The sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.

Deed of Trust

A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.