Special warranty deed

[Ambica Sharma]

I’m interested in a property on auction.com. The seller(bank) is offering special warranty deed. Does anyone have experience buying from auction.com with this kind of deed? I want to make sure that I’m not buying anything with any previous liens on the property. 

[Don Konipol]

General Warranty Deed holds seller responsible to defend title from sale date back to original deed.  Special Warranty Deed holds seller responsible only during his period of ownership.  Either way title insurance will cover almost all title issues; in other words it becomes title insurers problem.  In most states title insurance cost more with a special warranty deed, which makes no difference to the buyer if seller is paying for a title policy. In any case the difference in pricing is relatively small.