A limited warranty deed is a type of legal document used in real estate transactions. It provides a guarantee from the seller, known as the grantor, to the buyer, referred to as the grantee, concerning the property title. Unlike a general warranty deed, a limited warranty deed only covers the period during which the grantor owned the property and does not guarantee against defects that occurred prior to their ownership.
Limited warranty deeds are often utilized in sales and transfers of real estate, especially in situations where the grantor may not be able to provide a full warranty. This form is commonly used in transactions involving corporate entities or if the seller is unfamiliar with the property's history. The limited nature of the deed protects the grantor from liability for issues that may have arisen before their ownership.
This form is suitable for anyone involved in a real estate transaction where a limited warranty is acceptable. It is typically used by:
The essential components of a limited warranty deed include:
