Escrow & Title
A special warranty deed differs from a general warranty deed in that the grantor:
AMakes no warranties of any kind
BWarrants title only against defects arising during the grantor's ownership✓ Correct
CWarrants title against all defects in history
DTransfers only the grantor's existing interest without any warranties
Explanation
A special warranty deed contains limited covenants—the grantor warrants title only against claims arising from defects that occurred during their period of ownership, not from prior owners.
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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.
Abstract of TitleA condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.
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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