PSI Virginia Real Estate Practice Exam

What is the primary guarantee of a Special Warranty Deed?

1. The grantor has a clear title at the time of transfer

2. The grantor received title without any encumbrances

3. There are no encumbrances other than those listed in the deed

4. The deed is free from all title defects

The correct answer is: There are no encumbrances other than those listed in the deed

The primary guarantee of a Special Warranty Deed is that there are no encumbrances on the title other than those that are expressly stated in the deed. This means that the grantor is only responsible for the title issues that arose during their ownership of the property. The deed provides a limited warranty, protecting the grantee from any claims or encumbrances that were created after the grantor acquired the title but does not provide assurances beyond that period. This is distinct from a General Warranty Deed, which offers a broader guarantee for the entire history of the property, ensuring that the grantor warrants against all claims. In a Special Warranty Deed, the grantee cannot assume that the title is free of all defects prior to the grantor's ownership; they must be aware of and acknowledge the encumbrances that the grantor has disclosed. Therefore, the specific wording in the deed regarding encumbrances is critical to understanding the scope of the grantor's obligations.