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 New Hampshire, a special warranty deed is a legal document used to transfer property ownership with limited guarantees. Unlike a general warranty deed, which provides a full warranty of title, the special warranty deed only assures the grantee (buyer) that the grantor (seller) has not done anything to impair the title during their ownership. The grantor of a special warranty deed only defends the title against claims that arose during the period of their ownership. This means that if there were any title issues or claims before the grantor acquired the property, the grantor does not warrant against them. Special warranty deeds are often used in commercial property transactions and in situations where the grantor is unable to provide a full warranty of title. It is important for buyers to understand the limited nature of the protection provided by a special warranty deed and to consider obtaining title insurance for additional protection.