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An Iowa Special Warranty Deed is a deed used to transfer ownership of real property in which the seller guarantees that there were no problems with the property during the seller’s ownership.
The seller is promising that the title is clear and free of any debts under his actual ownership, not from issues that may have arisen under previous ownership. When selling a piece of property, an Iowa Special Warranty Deed offers the seller the most protection.
The Iowa Special Warranty Deed is most often used when selling a piece of property and knowing there will be no claim through your title, but you may be unsure if there are prior claims against the property.
An Iowa Special Warranty Deed also provides that the seller has not done anything to cause problems with the title to the property during the period of his or her ownership. Iowa Special Warranty Deeds are a guarantee from the seller stating that nothing has happened to cause problems with the title while the seller has owned the property.
When using an Iowa Special Warranty Deed, the seller conveys the property with two warranties:
- The seller warrants that they have received title.
- The seller guarantees that there were no problems with the title during their period of ownership.
The Iowa Special Warranty Deed is favored by the seller because the seller only guarantees that there were no problems with the property after the seller acquired the property. If a prior owner caused a problem with the title, then the buyer will have to look for recourse elsewhere, not to the current seller’s deed.
An Iowa Special Warranty Deed provides for a kind of middle ground for buyers and sellers between the Iowa General Warranty Deed and Iowa Quitclaim Deed.
The two most important elements of an Iowa Special Warranty Deed are that it offers the buyer a warranty and it shields the seller from claims that arise from periods outside of the seller’s ownership of the property.
It is very important that the buyer purchase title insurance to assure a clear title, especially when the seller uses an Iowa Special Warranty Deed. Lenders will require title insurance and it is available for owners, buyers and lenders. With title insurance, the buyer can rest assured that the deed has clear title and the lender is assured that there are no encumbrances on the property.