Colorado has many different ways to "take title," conveyed in the form of different deeds. Here's a breakdown of the differences between General Warranty Deed (most common) and Special Warranty Deeds (less common) and what buyers and sellers need to know:

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General or Special Warranty Deeds in Colorado: What's the Difference?

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Colorado recognizes two types of warranty deeds for transfer of title from seller to buyer. while both types contain warranties, there is one major difference dictated by statute, C.R.S. 38-30-115. In substance, it's a transfer by the grantor (seller) that warrants 3 things:

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1. The grantor is the owner with full power to sell,

2. The property is transferred free and clear of encumbrances (except any identified)

3. That the grantor will defend title against anyone claiming an interest in the property.

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Number 3 is what differentiates a General Warranty from a Special Warranty Deed.

 

With a General Warranty Deed, the warranty clause in the deed states, “and warrants title to the same.” This means that the warranty of title provided by the seller extends all the way back in time, to people who might claim an interest in title even before the seller owned the property. In other words, the seller is warranting title for all prior owners, as well as the seller. ​

 

With a Special Warranty Deed, the warranty language is changed to limit the duration of the seller’s ownership alone. The warranty clause will state something like: “and warrants title to all persons claiming under me,” limiting claims against title during the time the seller owned the property and not before.

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There are reasonable and understandable reasons why a seller may want or need to convey property with a Special Warranty Deed versus a General Warranty Deed, but ultimately a buyer decide whether or not they want to accept those terms and close the sale during the due diligence period defined in the purchase contract.​

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Understanding real estate doesn’t have to be confusing. I break things down for my clients so they can buy or sell with confidence. Reach out today.