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 North Carolina, a special warranty deed is a type of deed where the grantor (seller) guarantees the title only against defects that may have arisen during their period of ownership. The grantor of a special warranty deed does not warrant against any issues in the title that predate their ownership. This means that the grantor is only responsible for title problems or claims that occurred while they held title to the property and is not responsible for any title defects that existed before they acquired the property. Special warranty deeds are less protective of the buyer than general warranty deeds, which provide a full warranty of title against all past claims and defects. The use of special warranty deeds is often seen in commercial property transactions and in situations where the grantor wants to limit their liability for potential title issues.