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 North Dakota, 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 period of ownership and does not guarantee against any defects or claims that predate their ownership. This type of deed is often used in commercial real estate transactions where the grantor is willing to stand behind their own actions but does not want to be responsible for issues that originated before they acquired the property. North Dakota state statutes govern the execution and recording of special warranty deeds to ensure they meet legal requirements for property transfers.