What does a Special Warranty Deed protect the buyer against?

A Special Warranty Deed offers protection to the buyer specifically against dispossession or adverse claims arising from the actions or omissions of the seller during the time that the seller owned the property. This means that if any issue arises that is directly related to the seller’s title or any encumbrances that occurred while the seller held ownership, the buyer has recourse.

This form of deed does not cover issues that may have arisen before the seller acquired the property, nor does it provide protection against adverse claims from outside parties that occurred during the seller's ownership but are not directly related to their actions. Hence, by protecting against dispossession due to claims made by the seller only, it emphasizes that the warranty is limited to the time when the seller held the title, making the buyer secure for issues directly linked to the seller's ownership period.

As a result, a Special Warranty Deed is frequently used in transactions where the seller may not have owned the property for a long time or where there may be a desire to limit the extent of warranties provided to the buyer.