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Foreclosures

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Shane Mcc
  • Real Estate Investor
  • Cranston, RI
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Difference between special warranty deed and grant deed

Shane Mcc
  • Real Estate Investor
  • Cranston, RI
Posted Oct 14 2017, 14:00

Hi,

I'm interested in purchasing a foreclosure property and the seller is selling the home with a "special warranty deed". What's the difference between a "special" and "grant" deed that is sold with most properties? 

Thanks

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William Hochstedler
  • Broker
  • Logan, UT
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William Hochstedler
  • Broker
  • Logan, UT
Replied Oct 15 2017, 09:45

I believe that, in a grant deed, the seller won't defend the title against third party claims.  Although, unlike a quit claim, they have disclosed any liens against the property.  So it's weaker than a special warranty deed which guarantees there are no issues that arose during the seller's ownership.

Like @Account Closed says, just make sure you have title insurance.  If the seller isn't providing a policy, get your own.  Pay attention to any exceptions.