Question: one house was bought under special warranty deed, does it mean that the house will have to be sold under the same warranty deed?

[Pita Lucas]

Hi, there,

I am a newbie to BiggerPockets and I am asking some questions about the warranty deed(title).

I bought one foreclosure house in Florida and i was given a "special warranty deed". It appears to me that all foreclosure houses are given this type of title. I found some relevant info via google:

Quoted:

There are two types of deed, a "special warranty deed" in which the grantor (seller) guarantees he encountered no clouds to the title during his period of ownership ONLY. in a "general warranty deed", the grantor guarantees to defend your right of title for claims arising from ANY period. 

Unquoted.

Here are some questions:

1) It appears to me that all foreclosure houses are given this type of title. Is it correct? can the buyer of the house request on the bank to give the warranty deed? is it possible?

2) since i bought the house with special warranty, does it mean that I must sell it in future with special warranty? Is it possible for me to sell it with giving warranty deed to the buyer? If this is the case, does it mean that I , as the seller, will have a bigger liabilities?

Any advice will be greatly appreciated and thanks in advance for your help.

[Jon Holdman]

This varies from state to state. Colorado also uses "special warranty deeds". When you buy a REO, that's all you get.

But, if you buy or the seller buy's title insurance, you're still protected against other matters.  When you sell, you can sell with a general warranty deed.  If both the purchase and sale have title insurance, you should be protected against anything that would fall outside the special warranty deed.  Read the title insurance carefully.  When you buy, the title company will do a search and should bring anything to your attention, if there are title defects.  You can also purchase an additional rider on the title insurance that will protect you against any unrecorded matters.