What does a special warranty deed guarantee?

A special warranty deed guarantees that nothing has been done to encumber or cloud the title during the period of the grantor's ownership. This means that the grantor (the person transferring the property) is providing assurance that they have not created any liens, claims, or other issues with the property title while they owned it. However, the deed does not provide any guarantees or assurances regarding the title of the property before the grantor’s ownership. This type of deed offers limited protection compared to a general warranty deed, which covers the entire history of the title.

In contrast, the other options do not reflect the purpose of a special warranty deed. The option that suggests guaranteeing the highest selling price refers to the market aspect of real estate and not the legal nature of title transfer. Similarly, the assertion that the property is free from natural disasters addresses a completely different concern related to property condition rather than title assurance. Lastly, claiming that the deed guarantees the legality of all previous transactions misrepresents the scope of what is covered, as a special warranty deed specifically limits coverage to the period of the grantor's ownership.