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 Idaho, a special warranty deed is a legal document used to transfer property ownership with limited guarantees. Unlike a general warranty deed, which provides a full warranty of title, the special warranty deed only assures the grantee (buyer or transferee) that the grantor (seller or transferor) has not done anything to encumber the property during their period of ownership. The grantor of a special warranty deed only defends the title against claims that arose during their ownership. This means that if there were any title issues or claims before the grantor acquired the property, the grantor does not warrant against them. Special warranty deeds are commonly used in commercial real estate transactions in Idaho. It is important for buyers to conduct thorough due diligence and consider obtaining title insurance when accepting a special warranty deed to protect against potential title defects that are not covered by the grantor's limited warranty.