A special warranty deed requires special language to ensure that the deed qualifies as a special warranty deed. This language is automatically included by our deed preparation service and valid in all Indiana counties.
An Indiana special warranty deed form—also called an Indiana limited warranty deed—transfers real estate with a limited warranty of title. The person transferring the property (grantor) guarantees that he or she has done nothing that would prevent conveyance of clear title to the property, but limits that guarantee to the period when the grantor owned the property. The grantor is not responsible for title issues that arose before the grantor owned the property.
An Indiana special warranty deed may also be called a limited warranty deed. Both terms are correct. In other states, the same deed form may be called a grant deed, covenant deed, or statutory warranty deed. Each of these terms refers to the same basic deed form—a deed that conveys property to the new owner with a warranty of title that is limited to the time when the grantor owned the property.
The title special warranty deed refers exclusively to the warranty of title. A grantor that signs a special warranty deed guarantees that the grantor has done nothing that would prevent the grantor from conveying clear title to the grantee but makes no promises about what may have happened before the grantor acquired the property. The grantor is not responsible for title problems other than those caused during the grantor’s ownership of the property.
The limited warranty of title provided by a special warranty deed distinguishes it from two other Indiana deed forms that are named after the warranty of title:
The limited warranty provided by an Indiana special warranty deed makes it a middle ground between these two other types of deeds.
An Indiana special warranty deed form also differs from two other Indiana deeds that are named after their probate avoidance features:
Although the terms special warranty deed and life estate deed refer to conceptually different features, a life estate deed can include a limited warranty of title. A single deed may be both a life estate deed and a special warranty deed.
Special warranty deeds are most often used in sales of commercial real estate, where the buyer is paying full price for the property. In that context, the warranty provided by the special warranty deed is almost always supplemented by a title insurance policy that shifts risk from the grantor to the title insurance company. Special warranty deeds may also be used to transfer real estate to a living trust or an LLC that is owned or controlled by the grantor.
All Indiana deeds must meet the requirements of Indiana law. Because each state has distinct requirements, a deed that is valid under another state’s law may not be valid in Indiana. Each Indiana deed should be designed to meet the specific requirements of Indiana law. These requirements include a correct vesting and warranty language, a valid legal description, statement of consideration, and a description of the manner in which co-owners will hold title, font size and page format requirements, and signature and notarization requirements.
Each deed used by our online deed preparation service was attorney-designed to meet the requirements of Indiana law and be eligible for recording in all Indiana counties.