Special Warranty Deed
I am considering making an offer on a vacant lot which will be conveyed by special warranty deed. It is a foreclosed property. As I understand it, a special warranty deed limits the liability of the grantor and is similar in some respects to a quit claim deed. My question is this, would the marketability of this lot be adversely affected by me being given a special warranty deed as opposed to a general warranty deed? If I do purchase it, what can be done to avoid any marketability problems when attempting to resell it?
We do a lot of special warrenty deeds with foreclosed properties, the major reason is the lender who foreclosed is saying " yes we foreclosed and yes we feel les pendens was properly exicuted " however a warrenty deed states they will defend clear title and a lender is not willing to say that.
It will not effect your title as to the type of deed you take title under. It would however be worth it for you to review the last to owners to see if transfer was executed properly or take the purchase to a title company and get insurance.
thanks for the reply. I checked the last transfer before the foreclosure and it transferred with a general warranty deed. The subdivision is only 5 years old and there was the original sale of the site and then the foreclosure.