General Warranty Deed

When a Grantor executes a "Special Deed" or "Special Warranty Deed," he or she is only warranting that they own the property and that no title defects arose during the time they owned the property. A Special Warranty Deed provides more protection than a quit claim deed, but less than a General Warranty Deed. A General Warranty Deed warrants title to the property from the beginning of time.

Why Use a Special Warranty Deed?

Special Warranty Deeds are most often used in Commercial Real Estate Transactions.  This is so because often the owner of Commercial Real Estate is less intimately connected to the property and less willing to warrant against things that happened before they become owner of the property.
  Special Warranty Deeds can also be used to convey title to Residential Real Estate, but this is not usually how title is passed for residential property.  Usually a General Warranty Deed is used when dealing with Residential Property.

What Has to be Included in both a Special and General Warranty Deed?

All Warranty Deeds must contain:
(1) a statement indicating that consideration has been given for the property;
(2) the Grantor and Grantee's names and addresses;
(3) the County where the property is located;
(4) a legal description of the property;
(5) signature of the Grantor;
(6) Notarization. 

What Does a General Warranty Deed Promise the Grantee?

(1) That Grantor owns the property and can legally transfer title to Grantee (Seisin);
(2) That there are no liens against the property that have not already been disclosed to Grantee (No Encumbrances);
(3) That Grantor will defend Grantee against third-party claims to ownership (Quiet Enjoyment);
(4) That Grantor will deliver all documents required for marketable title (Further Assurance)

A Special Warranty Deed limits these promises to the time when the Grantor became owner of the property.