Special Warranty Deed in Pennsylvania
The deed common in PA commercial deals that warrants title only for the seller's own ownership.
What is a special warranty deed?
A special warranty deed (sometimes called a limited warranty deed) guarantees the title only against problems that arose during the seller's own period of ownership — not against defects that existed before the seller acquired the property. It sits between a full general warranty deed and a no-warranty quitclaim deed.
Why it's common in commercial deals
Special warranty deeds are the norm in Pennsylvania commercial transactions. A commercial seller — often an entity that held the property only for a period — is willing to warrant its own ownership but not the entire history of the title. Buyers accept this because they rely on title insurance for the earlier chain.
What it means for a buyer
A buyer taking a special warranty deed should make sure its owner's title policy covers the pre-seller history the deed does not, and should review the title commitment closely. The deed and the title policy work together.
How Nochumson P.C. helps
Nochumson P.C. drafts and reviews special warranty deeds and coordinates them with title coverage in commercial transactions. Contact us to review your deed.
Related articles:
- Warranty Deed vs. Quitclaim Deed
- Quitclaim Deed in Pennsylvania: When & How to Use One
- Title Insurance in Pennsylvania: What Buyers Should Know
- Fee Simple Ownership, Explained
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