How does a Special Warranty deed differ from a General Warranty deed?

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A Special Warranty deed provides a limited warranty regarding the title of the property. This type of deed guarantees that the grantor is responsible for defects in the title only during the period of their ownership. Essentially, the grantor is assuring that they have not created any defects or issues with the title while they owned the property, but they do not provide any warranties for issues that may have existed before their ownership.

In contrast, a General Warranty deed offers a broader protection, covering all encumbrances and defects in the title from any previous owners, not just the current grantor. This means that the grantee can feel more assured of the property's history and title integrity.

Therefore, the distinction made in the correct answer highlights that a Special Warranty deed's coverage is limited to the time frame of the grantor’s ownership, rather than the entire history of the property’s title as represented by a General Warranty deed.

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