A special warranty deed is a deed transferring or conveying ownership of property in which the grantor (seller or transferor) promises (covenants) to defend the title only against other defects, liens, encumbrances, or claims made by the grantor or by someone claiming by or under the grantor.
In other words, a special warranty deed provides a limited warranty of title and does not warrant against claims or defects in the title that existed before the grantor took possession of the property.
In Alabama, a special warranty deed is a legal document used to transfer property ownership with limited warranty of title. Unlike a general warranty deed, which guarantees the title against all past claims, a special warranty deed only guarantees the title against claims that arose during the period in which the grantor owned the property. This means the grantor of a special warranty deed in Alabama is only responsible for title issues or encumbrances that occurred during their period of ownership and not for any that existed prior to that time. The special warranty deed is commonly used in commercial real estate transactions and in situations where the grantor is unwilling or unable to provide a full warranty of title. It is important for buyers to understand the limited nature of the protection offered by a special warranty deed and to consider obtaining title insurance for additional protection against potential title issues.