You’re selling property but can’t confidently warrant the entire title history—maybe you inherited it, purchased it recently, or you’re selling as an executor or trustee. You want to provide reasonable protection without accepting unlimited liability for title problems that arose before you owned the property. A special warranty deed offers the perfect middle ground between the comprehensive warranties of a general warranty deed and the complete lack of protection in a quitclaim deed.
A special warranty deed warrants title only against defects arising during your period of ownership, not before. This deed type is common in commercial transactions, estate sales, and situations where sellers have limited knowledge of property history. At Strickland Law Firm, we prepare special warranty deeds for Houston property sellers who need to provide reasonable protection while limiting their liability appropriately.
We ensure your special warranty deed is properly drafted, clearly defines the warranty period, and protects your interests while giving buyers necessary assurances.
A special warranty deed (also called a limited warranty deed) provides warranties from the seller about title quality, but only for the period during which the seller owned the property. The seller warrants that they have not personally done anything to impair title and that no liens or encumbrances arose during their ownership except those specifically disclosed. However, the seller makes no promises about title quality before they acquired the property.
This limited warranty approach protects sellers from liability for historical title problems they didn’t create. If an old lien from 30 years ago surfaces, the buyer cannot make a claim against a seller who provided a special warranty deed—the seller only warranted their own ownership period.
Special warranty deeds include two primary covenants: that the grantor has not conveyed the property to anyone else, and that the property is free from encumbrances created by the grantor except those disclosed. Unlike General Warranty Deed which includes six covenants covering the entire title history, special warranty deeds limit the seller’s exposure to problems arising during their ownership period only.
We’ve prepared numerous special warranty deeds for Houston property transactions where limited warranties are appropriate and expected. When you work with us, we:
You receive professionally prepared deeds that appropriately limit your liability while providing buyers with reasonable assurances about your ownership period.
Special warranty deeds are appropriate in several common situations. Executors, administrators, and trustees selling estate property typically use special warranty deeds because they cannot personally warrant title history before the deceased owner acquired the property.
Commercial real estate transactions often involve special warranty deeds rather than general warranty deeds. Sophisticated commercial buyers typically accept special warranties because they’re obtaining title insurance that protects against all defects regardless of when they arose.
Properties acquired through foreclosure, tax sales, or other non-traditional means are usually transferred with special warranty deeds because the seller cannot confidently warrant the full title history. REO (bank-owned) properties, properties sold by corporations or LLCs, and family members who inherited property and are selling it to third parties often use special warranty deeds to limit warranty exposure appropriately.
The critical difference is the scope of warranties provided. A General Warranty Deed warrants title against all claims regardless of when they arose, making the seller responsible for the entire title history. A special warranty deed only warrants title during the seller’s ownership period, limiting liability to problems they personally created.
For buyers, general warranty deeds provide more protection. For sellers, special warranty deeds limit their risk to a defined period they actually controlled. In residential sales where the seller has owned the property for years and has title insurance, general warranty deeds are standard. In commercial sales, estate sales, and situations where the seller has limited title knowledge, special warranty deeds are common and acceptable.
A special warranty deed includes limited warranties about the seller’s ownership period, providing some protection if the seller breached those warranties. A Quitclaim Deed provides no warranties whatsoever—the seller transfers whatever interest they have without any promises about title quality.
Buyers typically prefer special warranty deeds over quitclaim deeds in arms-length transactions because they receive at least some assurances about recent title history. If you’re selling property for fair market value, a special warranty deed is more appropriate than a quitclaim deed because it provides reasonable protection while limiting your liability.
A properly prepared special warranty deed in Texas must include specific elements to be valid. The deed identifies the grantor and grantee with complete legal names, contains an accurate legal description of the property, and states the consideration for the transfer.
The critical element distinguishing special warranty deeds from general warranty deeds is the granting clause language. Texas law provides specific statutory language for special warranty deeds that limits the warranties to the grantor’s ownership period. Using this statutory language ensures the deed provides the limited warranties intended.
Any encumbrances that arose during the seller’s ownership and will remain on the property must be specifically disclosed as exceptions. The deed must be signed before a notary public and properly recorded with the Harris County Clerk’s office.
Buyers receiving special warranty deeds should always obtain title insurance because the deed only protects against problems from the seller’s ownership period. Title insurance protects against all title defects regardless of when they arose, filling the gap left by the limited warranties.
Title insurance companies charge the same premium whether you receive a general warranty deed or special warranty deed. This is why commercial buyers readily accept special warranty deeds; they rely on title insurance for comprehensive protection rather than the seller’s personal warranties.
We understand that you want to transfer property fairly while protecting yourself from liability for historical problems you didn’t create. Whether you’re an executor selling estate property, a commercial seller, or someone who recently acquired property, choosing the appropriate deed type protects your interests.
At Strickland Law Firm, we provide experienced guidance on deed selection and preparation. We explain the warranties you’re providing, ensure your deed is properly drafted, and handle all execution and recording requirements. With transparent flat-fee pricing, you’ll know the cost upfront.
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A special warranty deed warrants only that no title defects arose during the seller’s ownership period, protecting sellers from liability for historical problems before they owned the property.
Use a special warranty deed when selling inherited property, estate property, foreclosed property, or when you have limited knowledge of title history and cannot confidently warrant the full chain.
Yes, special warranty deeds only warrant the seller’s ownership period while general warranty deeds warrant the entire title history, providing significantly more protection and recourse to buyers.
Yes, title insurance companies issue policies regardless of deed type, and insurance protects against all title defects, making special warranty deeds acceptable in most commercial transactions.
You have no liability if title problems predating your ownership emerge, as special warranty deeds only warrant your ownership period, not the property’s entire history.
Yes, executors typically use special warranty deeds because they cannot personally warrant title history before the deceased acquired the property, limiting liability to their administration period.
If you’re selling property where limited warranties are appropriate, a special warranty deed provides reasonable protection to buyers while limiting your liability to your ownership period.
Call Strickland Law Firm today to discuss your special warranty deed needs and ensure your property transfer is handled correctly.
