A Special Warranty Deed differs from a general warranty deed in that which of the following is true?

A Special Warranty Deed differs from a general warranty deed in that which of the following is true?

• A. Only covenants against encumbrances after the grantor's ownership
• B. Identical to a general warranty deed except the covenant against encumbrances applies only to the time the grantor owned the property
• C. Offers no warranties about any encumbrances
• D. Provides a broader warranty than a general warranty deed

Answer: (B)

Special Warranty Deed limits the grantor’s protection to problems that occurred only during the grantor’s own ownership. The grantor warrants that there were no encumbrances created by the grantor while they owned the property, but it does not guarantee against encumbrances that existed before their ownership or were created by others. This narrower scope is what sets it apart from a general warranty deed, which covers encumbrances throughout the entire chain of title. So the best description is that the covenant against encumbrances applies only to the time the grantor owned the property. The other statements misstate the scope: it does provide warranties about encumbrances (just not for prior periods), it is not broader than a general warranty deed, and it is not limited to encumbrances that appear after the grantor’s ownership.

Special Warranty Deed limits the grantor’s protection to problems that occurred only during the grantor’s own ownership. The grantor warrants that there were no encumbrances created by the grantor while they owned the property, but it does not guarantee against encumbrances that existed before their ownership or were created by others. This narrower scope is what sets it apart from a general warranty deed, which covers encumbrances throughout the entire chain of title.

So the best description is that the covenant against encumbrances applies only to the time the grantor owned the property. The other statements misstate the scope: it does provide warranties about encumbrances (just not for prior periods), it is not broader than a general warranty deed, and it is not limited to encumbrances that appear after the grantor’s ownership.