Escrow & Title
In Michigan, a Special Warranty Deed provides a covenant that the grantor:
AWarrants title against all claims from all sources
BWarrants title only against claims arising during the grantor's ownership✓ Correct
CMakes no warranty whatsoever
DWarrants that the property is free of all liens
Explanation
A special warranty deed (also called a limited warranty deed) contains a covenant that the grantor will defend the grantee against claims arising only during the period of the grantor's ownership — not against defects arising before their acquisition.
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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).
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Title InsuranceInsurance 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 TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
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