I am looking into a deal in Alabama and the seller is looking to issue a limited warranty deed. I know the dictionary definition and Google definition from what I've found so far but would like some first hand feedback.
Is there anything wrong or any reason a limited warranty deed would be issued apart from protecting the seller? Is there anything additional I should look into before securing this deal and what other considerations of cautions do you recommend?
Thank you in advance for the help.
In Alabama, it is called a statutory warranty deed and it does have ramifications. Your attorney or closing agent can walk you through the risks.
Al Wilson thank you for the information. I called my attorney to get some advice and he indicated it should be ok but when we do the title search we will learn more.
I have never heard the term Limited warranty deed. I suspect it is the same as what is used commonly in MD which is a Special warranty deed. Using a general warranty deed, the seller is guaranteeing the title from before he or she owned it. A special warranty deed says I did nothing to screw up the title while I owned it.
If it is common in your state to use the limited warranty deed i wouldn't worry about it as long as you are getting title insurance. If it is not common then I would ask an attorney what the potential risks and ramifications are. As an example a quit claim deed is a valid way to transfer title but it is a red flag for the next title company when you go to sell.