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 Virginia, a special warranty deed is a legal document used to transfer property ownership with limited warranty of title. This type of deed guarantees that the grantor (seller) has not done anything to encumber the property during their period of ownership but does not guarantee against any issues or claims that may have arisen before the grantor acquired the property. The grantor of a special warranty deed only defends the title against claims that arose during their period of ownership. This is in contrast to a general warranty deed, which provides a more comprehensive warranty of title, assuring the grantee (buyer) against any title defects or claims, even those that predate the grantor's ownership. Special warranty deeds are commonly used in commercial real estate transactions in Virginia. It is important for buyers to understand the limited nature of the warranty provided by a special warranty deed and to consider obtaining title insurance for additional protection.