Question

In a recent property sale, the deed of conveyance contained only the following guarantee: This property was not encumbered during the time the current owner owned it, except as noted in this deed. What type of deed makes such a covenant?

Option 1: Warranty Deed
Option 2: Quitclaim Deed
Option 3: Bargain and Sale Deed
Option 4: Special Warranty Deed

Answer 1

A deed that guarantees the property was not encumbered except as noted during the seller's period of ownership is known as a Special Warranty Deed. It differs from a Quitclaim Deed which makes no title guarantees.

Step-by-step explanation:

The type of deed that contains the covenant "This property was not encumbered during the time the current owner owned it, except as noted in this deed" is a Special Warranty Deed. Unlike a General Warranty Deed that provides a full warranty of clear title that extends back to the origins of the property, a Special Warranty Deed only guarantees that there are no title defects or encumbrances during the period of the seller's ownership of the property. This means the seller of the property is only responsible for the property during their ownership and assures the buyer that there are no known liens or disputes over the title for that time period. A Quitclaim Deed, on the other hand, makes no guarantees about the title and essentially transfers any ownership interest the seller may have without any warranty.