What is the difference between a general warranty deed and a special warranty deed?

What is the difference between a general warranty deed and a special warranty deed?

• A. General warranty guarantees title against all defects; special warranty covers only defects arising during the grantor's period.
• B. General warranty covers only the grantor's period; special covers all defects.
• C. General warranty protects against title defects found in public records; special does not.
• D. General warranty is not used in lending; special warranty is required by lenders.

Answer: (A)

This question tests how far the deed’s promises extend in time. A general warranty deed provides the broadest protection for the buyer: it guarantees the title against defects that could have arisen at any point in history, not just during the current owner’s tenure. It includes promises that the grantor will defend the title against claims and will remedy any title problems, even if those problems originated before the grantor owned the property. A special warranty deed, on the other hand, limits those protections to defects that occurred during the grantor’s period of ownership. It does not cover problems that existed before the grantor took title. So the statement that a general warranty covers all defects while a special warranty covers only defects arising during the grantor’s period is the accurate distinction. The other options misstate who is protected, the scope of protection, or typical lender practices.

This question tests how far the deed’s promises extend in time. A general warranty deed provides the broadest protection for the buyer: it guarantees the title against defects that could have arisen at any point in history, not just during the current owner’s tenure. It includes promises that the grantor will defend the title against claims and will remedy any title problems, even if those problems originated before the grantor owned the property.

A special warranty deed, on the other hand, limits those protections to defects that occurred during the grantor’s period of ownership. It does not cover problems that existed before the grantor took title.

So the statement that a general warranty covers all defects while a special warranty covers only defects arising during the grantor’s period is the accurate distinction. The other options misstate who is protected, the scope of protection, or typical lender practices.