What is a Limited Warranty deed?

A Limited Warranty deed is deed that only warrants the title for the limited time in which the seller owned the property. In other words, a Limited Warranty Deed is a deed in which the property transferred is warranted to be free of all liens and encumbrances made by or through the Grantor, but not otherwise. In some states, a Limited Warranty Deed is referred to as a Special Warranty Deed. The warranty provided with a Limited Warranty Deed is much more limited in scope than the warranty provided in a Warranty Deed. Therefore, if you are selling property you should try to only provide a Limited Warranty Deed to limit your potential liability.

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