A Special Warranty Deed guarantees the property is free from which type of encumbrances?

A Special Warranty Deed provides a limited form of title assurance in real estate transactions. It guarantees that the grantor (the seller) holds clear title to the property and can convey it, but it specifically limits the scope of that assurance to encumbrances that arose only during the period of the grantor's ownership. This means that the grantor is only responsible for addressing any issues or claims that occurred while they owned the property.

This distinction is important because it protects the grantor from having to resolve problems that may have originated before their ownership. It does not cover historical encumbrances that predate their ownership or any future claims that may arise after the property is conveyed. Thus, when considering the options, the assertion that a Special Warranty Deed guarantees the property is free from only those encumbrances made during the owner’s ownership accurately reflects the legal effectiveness of this type of deed.

In contrast, the other options suggest broader warranties of title than what a Special Warranty Deed provides, leading to misunderstanding of the deed’s legal implications.