Special Warranty Deed Form
Definition and meaning
A Special Warranty Deed Form is a legal document used in real estate transactions. This type of deed transfers ownership of property from the seller (grantor) to the buyer (grantee) while providing specific guarantees. Unlike a general warranty deed, a special warranty deed only covenants against defects in the title that arose during the grantor's ownership, thereby limiting the grantor's liability for issues that may have existed prior to their ownership.
Who should use this form
This form is ideal for property sellers who wish to transfer ownership with limited liability. It is particularly useful for individuals or entities that are selling property acquired through a trust, estate, or following foreclosure. Buyers seeking assurance that the seller has not encumbered the property during their ownership may also want this type of deed for added protection.
How to complete a form
To complete the Special Warranty Deed Form, follow these steps:
- Enter the date of signing at the top of the form.
- Fill in the names and addresses of the grantor and grantee.
- State the consideration amount for the property being sold.
- Provide the property address and legal description of the real estate being transferred.
- Have the grantor sign the document in the designated signature area.
- Ensure signatures of witnesses are obtained where required.
Finally, the form must be notarized to be legally enforceable.
Key components of the form
The Special Warranty Deed Form includes several essential elements:
- Identification of Parties: Clearly identifies the grantor and grantee.
- Property Description: Provides detailed legal descriptions to clearly identify the property being transferred.
- Consideration: Specifies the amount paid for the property, establishing the transaction's legitimacy.
- Grantor's Covenants: Includes warranty clauses outlining the grantor's promises regarding the title's status.
- Witness and Notary Sections: Areas for signatures that validate the deed.
What to expect during notarization or witnessing
During notarization, the grantor will present valid identification to the notary public. The notary will confirm the grantor's identity and willingness to sign the document voluntarily. Witnesses may also be required to observe the signing process and provide their signatures. It is crucial to ensure all parties are present and that the notary is properly licensed in the jurisdiction where the property is located.
Common mistakes to avoid when using this form
When completing a Special Warranty Deed Form, avoid the following mistakes:
- Failing to accurately describe the property, which can lead to disputes.
- Not including the consideration amount, making the deed contestable.
- Omitting witness signatures when required by state law, which can invalidate the deed.
- Neglecting to notarize the document properly, resulting in legal enforceability issues.
