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Special Warranty Deeds
The grantor may also choose to limit the above warranties by using specific language excluding them. When reading or drafting a deed, it is important that one be aware of whether all warranties are intended, or whether the grantor only wishes certain guarantees. This is important in potential litigation. For instance, as one Indiana case has noted:
Centex conveyed the property to House by special warranty deed. A warranty deed normally contains covenants of seisin, right to convey, freedom from encumbrances, quiet enjoyment, and warranty. If the usual covenants are limited, the deed is known as a “special warranty deed.” Centex's deed contains only the covenant of warranty: The Grantor [Centex], herein and its successors shall warrant and defend the title to the above described real estate to Grantee [House], [his] successors and assigns, against the lawful claims and demands of all persons claiming by, through or under Grantor but against none other.[1]
So, whenever you see some, but not all, of the statutory deed warranties, you are dealing with a “special” warranty deed. When you are drafting a deed or comparing one against a sales agreement, it is important to note whether the deed language and the sales agreement match.
[1] House v. First Am. Title Co., 883 N.E.2d 197, 200-01 (Ind. Ct. App. 2008)
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