Delaware Property Bar Practice Exam – Prep, Practice Test & Study Guide

A special warranty deed includes covenants that specifically limit the liability of the grantor for claims or issues that may arise from the actions or omissions of the grantor during their ownership of the property. This means the grantor is only responsible for claims that originate while they hold title, protecting previous owners from any liability for issues that occurred prior to the grantor's ownership.

This is distinct from a general warranty deed, which provides more comprehensive guarantees about the property’s title, covering all claims against it, regardless of when they arose or who owned the property. A special warranty deed does not typically guarantee that the property is free of all encumbrances (which a general warranty deed would), nor does it extend protections to potential future owners or impose usage restrictions such as limiting the property to residential use only.