General vs. Special Warranty Deeds:
What's the Difference?

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 and Special Warranty Deeds, which are both very common in residential real estate in Colorado.

Breaking Down Warranty Deed Types in Colorado

Colorado recognizes two types of "warranty" deeds for transfer of title from seller to buyer. As the name implies, both types contain "warranties" that are dictated by statute C.R.S. 38-30-115 for three things:

The grantor is the owner who has the full power to sell,
The property is transferred free and clear of encumbrances (except any identified)
That the grantor will defend title against anyone claiming an interest in the property.

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

General Deeds, An Overview.

With a General Warranty Deed, 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 themselves.

Special Warranty Deeds, An Overview.

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 to the time the seller owned the property, and not before.

IMPORTANT: Deed Type and the Title Insurance Policy Are Two Separate Things

A Special Warranty Deed does not mean the Buyer will have less title insurance protection. The scope of title insurance protection the Buyer receives is determined by the type of title insurance policy issued, subject to its specific terms, conditions, and exceptions.

Additionally, regardless of the Deed type selected, the Title Company's search is not limited to any specific period of ownership. The title review a buyer receives under contract traces the property's recorded title history, back to the first recorded instrument for either deed type.

In other words, regardless of which Deed type the Seller offers upfront, the Buyer still receives the benefit of the Title Company's examination of the property's recorded title history, and is protected provided by the title insurance policy, subject to its terms, conditions, exclusions, and exceptions.

Bottom Line:

There are common, reasonable, and totally understandable reasons a Seller may want or need to convey property by Special Warranty Deed rather than General Warranty Deed, particularly in transactions involving estates, trusts, or corporate entities.

What's more, Buyers have the right during their Title Objection contingency period to review all title information and, with the guidance of their dedicated title professionals, determine whether a different deed type is appropriate for their circumstances. If changes are necessary, the Buyer can object and negotiate a change in deed type before their Title Resolution deadline.

Colorado's purchase contract provides a Title Review and Resolution contingency period for exactly this purpose, allowing all parties time to examine and address important details like these over time.

Use this contingency period wisely to perform ample due diligence, negotiate necessary changes, and make careful, informed decisions with a title expert before proceeding to closing.

Navigating Denver Real Estate with Michelle

Michelle Schwinghammer (colloquially known as "Schwing") is a real estate agent, broker associate with West + Main Homes, and the local expert behind SCHWINGSTATE LLC. Operating across the Denver Metropolitan area, Michelle specializes in ensuring her clients are fully educated, protected, and empowered.

Michelle takes client education seriously, and guide buyers and sellers through every step of the process. Ready to start a smarter home search? Schedule your Buyer Consultation today and make your next move with confidence.

General vs. Special Warranty Deeds: What's the Difference?