Posted by ray@lcorn on June 07, 2007 at 08:52:33:
Charity,
In my state that’s called a Special Warranty deed (SW), as opposed to a General Warranty deed (GW).
Small distinction, but important in effect. The SW deed warrants title for only the time it was owned by the seller. The GW deed warrants title from the start of official records in that jurisdiction.
I usually request a GW deed when buying, but offer only a SW deed when selling. Be surprised at how many don’t even notice, but if the counterparty wants the other choice, its not a dealbreaker.
Truth of the matter is, no matter which deed is used, this is why it is always a good idea to buy an owner’s title insurance policy, not to be confused with the lender’s title policy. Cheap insurance against any problems such as old easements, encroachments, etc., and eliminates the deed issue entirely.
And it is also a very good idea to get an ALTA survey of the property. It’s a little more expensive than a regular survey, but it’s worth it because it combines the title report, title insurance policy, and the physical survey together to show all encumbrances of record (such as easements, etc.) on the plat. That creates an ironclad marketable title, which is always to your benefit when selling the property.
ray