Investor · Marietta, GA · Member since 2016 · 54 posts · 10 votes
Hi all,
I'm looking to transfer my rental properties into my LLC, and I have been advised that I should do a Limited Warranty Deed vs. a General Warranty Deed. When looking at forms I find online for each, it feels like the only difference between Limited vs. General is that the titles say "Limited". I haven't been able to discern any actual difference in wording between the two contracts. I'm in GA, and the county provides templates for Warranty Deeds. It's standard language, and it seems like the recorder simply transfers the language from the form to other forms that get recorded in public records. Can someone explain how this process works? The only conclusion I can draw is that literally the only difference is that the title says "Limited Warranty Deed". Thanks!
Attorney · NJ · Member since 2016 · 1k+ posts · 794 votes
9y
A limited (or some states call them special) warranty deed warrants title only for the time period that the owner owned it. a (General) Warranty Deed warrants title for the whole time period before the new owner gets the deed. If you don't plan on suing yourself at any point, it probably doesn't actually matter one way or another.
Attorney · NJ · Member since 2016 · 1k+ posts · 794 votes
9y
A limited (or some states call them special) warranty deed warrants title only for the time period that the owner owned it. a (General) Warranty Deed warrants title for the whole time period before the new owner gets the deed. If you don't plan on suing yourself at any point, it probably doesn't actually matter one way or another.
Investor · Marietta, GA · Member since 2016 · 54 posts · 10 votes
9y
I might sue myself just for funsies.
I'm with you on what each type of deed does. However, when I compare the two such deeds in what I can find online, I don't see any difference in wording that specifically indicates that Limited/Special deeds only provide warranty when the property was under the control of the Grantor.... other than the title saying "Limited".
I also suppose it's irrelevant. The title searches upon purchase all came up clean, so there's no real risk considering I've held the properties at all times, correct?
Investor · Marietta, GA · Member since 2016 · 54 posts · 10 votes
9y
@Jessica Zolotorofe Cobb county in Georgia. It's so weird because I was looking and I just can't find differences in wording. I assume there would be something about "limited warranty" within the wording, but I'm not seeing it.
When I down the road attempt to sell these properties, would someone raise an eyebrow for not having a general warranty? I know quitclaims are suspicious.
Attorney · NJ · Member since 2016 · 1k+ posts · 794 votes
9y
Not if you had title insurance and the quitclaim was between related entities or persons. Double check that if you use a real general warranty, or even special/limited warranty deed you won't have to pay transfer tax. I can't recall in GA what the rule is.