In today's real estate world there are a number of types of deeds, the two most common residential deeds are the General Warranty and the Special Warranty deeds. The General Warranty deed provides a grantee (buyer) with the greatest protection or "estate". In this deed the grantor (seller) is legally bound by certain covenants or warranties. Those warranties are: Grantor has the right to convey the property, Grantor warrants that the property is free from liens or encumbrances, Grantor warrants that the title will be good against third parties who might bring a court action, Grantor agrees to obtain and deliver an instrument needed to make the title good and agrees to compensate the grantee (buyer) for the loss sustained if the title fails any time in the future against ALL former owners of the property.
Different from the General Warranty deed, the Special Warranty deed contains just two basic warranties: One that the grantor (seller) received title and two, that the property was not encumbered during the time the grantor held title to the property.
In most cases title insurance will accompany the Special Warranty deed to insure that the title was not encumbered by third party owners in the past, since the Special Warranty only warrants for the period of time the property was owned by the immediate grantor (seller)