QUESTION

What can I do to protect myself when my builder gives me a Special Corporate Warranty Deed on my new property in Florida, I want a General Warranty D.

Asked on Jun 25th, 2012 on Real Estate - Florida
More details to this question:
I was not aware of this deed until I did a little online research of surrounding homes in my neighborhood. Another builder in the community offers General Warranty deeds, but my builder does not. We are about two weeks away from closing. Does the title insurance policy cover all transactions on the property, or just the transfer from the builder to me?
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1 ANSWER

Real Estate Law Attorney serving Anniston, AL at Isom Stanko & Senter, LLC
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There are two basic kinds of deeds.  One is the General Warranty Deed.  By that deed, the seller warrants good title against all claims whatsoever.   the other deed form is known as a Special Warranty Deed, or Limited Warranty Deed or Statutory Warranty Deed.  All these names refer to the same type deed.  The warranty is limited.  The seller warrants only that HE (or IT) has done nothing to undermine the title.  This deed form assumes the seller does not necessarily know the background of the title and so he will not warrant there are no problems associated with it. Banks and other corporate entities will often refuse to issue General Warranty Deeds.  It is perhaps a bit unusual for a contractor (even one that is incorporated) to take that position. If you receive a limited warranty deed, it more important that you obtain title insurance.  That is your best protection.  The issuing agent is charged with the responsibility to conduct a good background investigation of the title and to issue a policy of insurance that will protect your interests should there ever be a problem.   
Answered on Jun 26th, 2012 at 8:39 PM

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