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There are two sides to a transaction. In real estate, a grantee is the recipient of the property, and the grantor is a person that transfers ownership rights of a property to another person.
While the seller in a Warranty Deed must defend the title against all other claims and compensate the buyer for any unsettled debts or damages, the seller in a Special Warranty Deed is only responsible for debts and problems accrued or caused during his ownership of the property.
While a special warranty deed conveys fee simple title and provides the same five covenants of title that a general warranty deed does, to wit: the covenant of seisin. covenant of the right to convey. covenant against encumbrances.
The guarantees of a general warranty deed are known as covenants. Traditionally, there are six covenants of title which can be divided into present covenants and future covenants.
General Warranty Deed ? The General Warranty deed is often referred to simply as a warranty deed. It is a deed conveying title where the seller (grantor) makes six covenants or promises to the buyer (grantee) as part of the conveyance.
Covenants of Quiet Enjoyment and Warranty A covenant of warranty provides that the grantor will protect and defend the grantee against any title claims from third parties. A covenant of warranty may also include a promise from the grantor to compensate the grantee for any losses they may incur from third parties.
The General Warranty Deed A general warranty deed provides the highest level of protection for the buyer because it includes significant covenants or warranties conveyed by the grantor to the grantee.
A special warranty deed is a deed to real estate where the seller of the property?known as the grantor?warrants only against anything that occurred during their physical ownership. In other words, the grantor doesn't guarantee against any defects in clear title that existed before they took possession of the property.