When you pass along a title with a limited warranty deed, you pass along assurances that the title has not been clouded under your watch.
The limited warranty deed doesn’t offer the full set of title assurances that fortify a general warranty deed. But it carries higher assurances than a quitclaim — which doesn’t declare a property free and clear of liens or other issues. A special warranty deed tells us that the party conveying it has the right to do so, and that any known burdens on the title are obvious on the deed. There is no guarantee against any title defects dating from earlier owners, though.
Limited warranty deeds, also called special warranty deeds, are uncommon in standard home purchase agreements. But they are frequently chosen for transferring title when a general warranty deed is too risky for a seller to offer, or simply inappropriate for the transfer.
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