I'm making an offer on a condo and it's a new construction - that's built, but projected to be completed in 2 months. in the agreement of sale it mentions "DEED;TITLE: Title to the premises shall be conveyed by Sellers special warranty deed at settlement and shall be insurable as good and marketable by a licensed title company, at regular rates subject to restrictions, agreements, conditions and easements...". Is it okay and normal for it to say special warranty deed?
A general Warranty deed contains a promise by the seller (a warranty) that no one has EVER done anything to diminish the title to the real estate. A special warranty deed contains a promise that the seller has not diminished the title. In PA most contracts call for a special warranty deed.
Let me give you a couple of common things a seller may have done, which will breach the special warranty: 1) a pipeline company comes through and you take their money for an easement; 2) you decide to put deed restriction on your property; 3) you subdivide off part of the property and retain an easement for access/ When you do this, and then decide to sell the property, you need to change the standard form of agreement of sale and the deed you give. Make sure you have someone who understands this or you will wish you had.
DISCLAIMER The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change. Attorney is licensed to practice law only in the Commonwealth of Pennsylvania. Responses are based solely on Pennsylvania law unless stated otherwise. When answering questions on AVVO, attorneys are prohibited from directly soliciting business. Don't take this as an indication of lack of interest. James S. Tupitza
Yes, it's normal for a seller, including a developer, to convey title under special warranty. If you have a good title company and/or real estate attorney helping you with the deal, they will review the earlier deeds in the chain of title as part of the title commitment and insurance you are presumably purchasing.
Years licensed, work experience, educationLegal community recognition
Peer endorsements, associations, awardsLegal thought leadership
Publications, speaking engagementsDiscipline