Buying a home with a SPECIAL WARRENTY DEED vs. GENERAL WARRENTY DEED is one better than the other?

 

First let me start by giving you a clear definition of the two:

 

            A general warranty deed is a promise to the buyer that the seller will warranty any prior problems with title, not just during the seller's ownership, but back along the chain of ownership

 

            A special warranty deed, on the other hand, limits the seller's promise -- or warranty -- to title problems that come up while the seller owned the property.

 

As you can see a general warranty deed is the better alternative and is typically the type that your Realtor will suggest. However, if the seller is not willing to provide you with such you can always purchase title insurance which will provide you the same protection. Please note if you are taking out a mortgage on a home your lender will require title insurance no matter what type of deed you obtain. Title Insurance insures the lender as to the priority of its lien, meaning there are no other mortgages, liens or judgments recorded prior to their mortgage

 

            Title Insurance protects purchasers of real estate against title defects that may exist against the property

 

If you have any further questions about this topic call your local Realtor.