Special Warranty Deed

The special warranty deed is one where the seller limits the covenant of warranty. He does this by limiting the warranty against all persons claiming the title "by, through, or under him, but not otherwise."

The net effect of this limitation is to relieve the seller from any liability for claims that do not arise through him. Thus, the warranty of title against those claiming by, through, or under grantor is not breached by assertion of prior and superior title.

Consent of the underwriter must be obtained before insuring a transaction where the current seller proposes passing title by a special warranty deed.