When is a Special Warranty Deed typically used?

A Special Warranty Deed is typically used when the seller wants to limit their liability for past defects. This type of deed provides a warranty that only covers the time the seller owned the property, ensuring that the seller is responsible for any title issues that arose during their ownership but not for any problems that occurred before that time. This is advantageous for sellers who may not have complete knowledge of the property's history and wish to protect themselves from claims that might arise from prior ownership.

In transactions where the seller is the original owner, transferring property to family members, or situations where no title insurance is involved, a Special Warranty Deed may not be necessary or appropriate. The other contexts may involve different types of deeds that provide varying levels of warranty and protection to the parties involved.