Escrow & Title
In Texas, a 'special warranty deed' is commonly used in foreclosure sales and estate sales because:
AIt provides the strongest warranty available
BThe grantor only warrants title against claims arising through the grantor's own actions, not defects arising before they acquired the property✓ Correct
CIt eliminates the need for title insurance
DIt is required by TREC for all non-residential sales
Explanation
A special warranty deed limits the seller's warranty to defects created during their ownership period. In foreclosure sales, estate sales, or tax deed sales, the grantor may not know the full history of the property and is unwilling to warrant against all possible prior defects. Buyers should always obtain title insurance with a special warranty deed.
Related Texas Escrow & Title Questions
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