Property Ownership
In NJ, a 'special warranty deed' differs from a general warranty deed because the grantor warrants title only against:
AAll claims from any source
BClaims arising through the grantor's own acts during their period of ownership, not claims from prior owners✓ Correct
COnly mortgage-related claims
DOnly government claims
Explanation
A special warranty deed (limited warranty deed) limits the grantor's warranty to claims arising through the grantor's ownership—the grantor does not warrant against defects from before they owned the property.
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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 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.
Joint TenancyCo-ownership where two or more people hold equal, undivided interests with the right of survivorship — when one owner dies, their share passes to the surviving owners.
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