A special warranty deed is a deed transferring or conveying ownership of property in which the grantor (seller or transferor) promises (covenants) to defend the title only against other defects, liens, encumbrances, or claims made by the grantor or by someone claiming by or under the grantor.
In other words, a special warranty deed provides a limited warranty of title and does not warrant against claims or defects in the title that existed before the grantor took possession of the property.
In Michigan, a special warranty deed is a type of deed where the grantor (the person selling or transferring the property) guarantees the title only against defects that may have arisen during their period of ownership. This means the grantor is not responsible for any issues or claims on the title that predate their ownership. The special warranty deed is less protective for the buyer compared to a general warranty deed, which provides a full warranty of clear title against all claims, including those that could have arisen before the grantor's ownership. The special warranty deed is often used in commercial property transactions and in situations where the grantor does not want to be liable for periods when they did not own the property. It is important for buyers to understand the limited nature of the warranty being provided with a special warranty deed and to conduct thorough due diligence on the property's title history.