General Warranty Deed vs. Special Warranty Deed: What Real Estate Professionals and Buyers Need to Know

When it comes to transferring property ownership, few documents are more important than the deed. While it may seem like just another legal form, the type of deed used in a real estate transaction can significantly impact both the buyer’s protection and the seller’s liability.

Two of the most common types of property deeds are the General Warranty Deed and the Special Warranty Deed (also referred to as a Limited Warranty Deed). Each offers a different level of legal protection, and understanding the differences is essential for homebuyers, investors, and real estate agents alike.

What Is a General Warranty Deed?

A General Warranty Deed provides the highest level of protection for the buyer. It guarantees that the title to the property is clear of any defects or claims, not only during the current owner’s time but throughout the entire history of the property.

In this deed, the seller assumes full responsibility for the condition of the title. That means if any issue arises from the past—whether caused by them or a previous owner—they are legally liable.

Key characteristics of a General Warranty Deed:

• Protects the buyer from all title defects, including those that occurred before the seller’s ownership

• Offers the most comprehensive legal protection for the buyer

• Places the highest level of liability on the seller

• Commonly used in standard residential real estate transactions

This type of deed is ideal when a buyer wants maximum assurance that the property is free from any encumbrances or legal disputes.

What Is a Special Warranty Deed?

A Special Warranty Deed, sometimes called a Limited Warranty Deed, offers more limited protection. In this case, the seller only guarantees that they did not cause any title issues during the time they owned the property. They do not assume responsibility for anything that may have occurred before their ownership began.

This type of deed is commonly used in scenarios where the seller may not have a full history of the property, such as in bank-owned properties, foreclosures, or new construction.

Key characteristics of a Special Warranty Deed:

• Protects the buyer only from title defects that occurred during the seller’s ownership

• Does not cover issues that originated before the seller acquired the property

• Reduces the seller’s liability compared to a General Warranty Deed

• Often used in foreclosure sales, REO properties, or builder-developer transactions

Buyers purchasing property under a Special Warranty Deed are often advised to secure comprehensive title insurance for added peace of mind.

Comparison: General vs. Special Warranty Deeds

Feature	General Warranty Deed	Special Warranty Deed
Buyer Protection	Full protection from all title defects	Limited protection during seller’s ownership only
Seller Liability	High	Limited
Common Usage	Traditional real estate transactions	Foreclosures, bank-owned sales, new builds
Legal Risk for Buyer	Low	Higher (unless covered by title insurance)

Why Deed Type Matters in Real Estate

The deed used in a real estate transaction outlines not only who owns the property but also the legal guarantees backing that ownership. For buyers, knowing which type of deed is being used can make a significant difference in risk and long-term security. For sellers, understanding the extent of liability they’re agreeing to is equally important.

Regardless of the type of deed, a thorough title search and a strong title insurance policy are essential parts of any secure real estate transaction.

How a Title Company Helps

Whether you're dealing with a General Warranty Deed or a Special Warranty Deed, working with an experienced title company is key to ensuring a smooth and secure transfer of ownership.

At Chicago Title, our team of seasoned professionals:

• Performs detailed title examinations to uncover any existing issues

• Ensures legal compliance with all documentation

• Provides title insurance to protect both buyers and lenders

• Facilitates escrow and closing with accuracy and efficiency

Our job is to make sure your transaction is handled professionally from beginning to end—regardless of the deed type.

Have Questions About Property Deeds?

If you're unsure about which type of deed is being used in your real estate transaction or want to make sure your rights are protected, reach out to us at Chicago Title. We’re here to guide you, answer your questions, and help you navigate even the most complex title and escrow situations with confidence.