What defines a Limited Warranty Deed?

A Limited Warranty Deed is characterized by warranties that are specifically restricted to the time period during which the grantor owned the property. This means that the grantor guarantees that they have not encumbered the property beyond the title they are transferring and that the title is good for the period the grantor held ownership. However, the grantor does not make any guarantees about events or circumstances that occurred before their ownership.

This type of deed provides a level of assurance to the grantee that they are receiving a clear title for the duration of the grantor's ownership but does not cover any issues that may have arisen prior to that ownership period. This is significantly different from other types of deeds. For example, a general warranty deed would offer broader protections as it assures that the title is clear for the entire history of the property, whereas a quitclaim deed provides no warranties at all. By focusing on the specific timeframe of the grantor's ownership, the Limited Warranty Deed strikes a balance between the interests of the grantor and the grantee.