Get North Carolina Special Warranty Deed

This can give you full confidence to buy because you know that should any claims against the property or liens arise, it can hold the seller legally liable. ... A special warranty deed only serves as a guarantee that there are no problems with the title outstanding from when the current seller owned the property.

The warranty deed transfers the property's ownership from the current owner to the new buyer, while the deed of trust ensures the lender has interest in the property in the event a buyer defaults on the loan. However, they will both be filed as public records after the purchase is complete.

Limited warranty deeds, also known as special warranty deeds, are typically used in commercial real estate transactions. While a general warranty deed guarantees against all encumbrances and claims to title, a limited warranty deed protects only against claims made after the seller obtained title to the property.

Special warranty deeds are most commonly used with commercial property transactions. Single-family and other residential property transactions will usually use a general warranty deed. Many mortgage lenders insist upon the use of the general warranty deed.

The best way to protect yourself as a buyer is to buy title insurance when you purchase the property. ... A special warranty deed provides the buyer with some guarantees about title, but it does not offer complete protection. However, these types of deeds can be acceptable if other protections are put in place.

In residential property, special warranty deeds are frequently used in foreclosures and the forced sale of the property to satisfy a debt. A general warranty deed covers the property's entire history.

A special warranty deed to real estate offers protection to the buyer through the seller's guarantee that the title has been free and clear of encumbrances during their ownership of the property. It does not guarantee clear title beyond their ownership.

The North Carolina special warranty deed is used to convey property in North Carolina from a grantor to a grantee. This is a form of warranty deed, but is different from a general warranty because the guarantee is limited in its scope. ... He does not guarantee what previous owners may or may not have done.

A warranty deed guarantees that: The grantor is the rightful owner of the property and has the legal right to transfer the title. The property is free and clear of all liens and outstanding claims. The title would withstand third-party claims to ownership of the property.

It will not protect against title issues that arose prior to the time the seller took occupancy. Consequently, it offers less protection to buyers, and more protection to sellers, than a general warranty deed, which is the most common option for selling or buying a property.