In the state of Arizona, the special warranty deed form will provide a limited warranty of title. What is sometimes known as a conveyance deed, with this type of deed, the party that is transferring a piece of property guarantees that they have not done anything that would cause problems with the title. However, they do not make any guarantees regarding what could have happened with the title before they bought the property.
If the seller of the property is married, their spouse will need to sign the deed to ensure that they do not have any retained interest in the property. For example, a spouse might have homestead interest or joint interest in the property. Signing the special warranty deed will remove these interests.
When Are Special Warranty Deeds Used?
The special warranty deed can be used in a range of circumstances. It is often used to transfer property to a trust, to transfer property to a business, or to sell commercial properties. They are also used to transfer property to a new owner who is buying title insurance on the property and who is not concerned about the limited warranty of title. As mentioned, it will also be used when the current owner doesn’t want to be legally responsible for issues that might exist with the title from before they owned the property.
The warranty deed provides a limited warranty of the title and the deed is often used as a supplement to a title insurance policy. The title insurance is used to remove the risk of title problems from the current owner to the title insurance company.
What Types of Problems Could Arise with the Title?
Most of the time, there will not be any issues with the title. However, this is certainly not a guarantee. Many little problems can creep into titles, particularly with older properties that have had many owners. The special warranty deed is meant to ensure that there are no issues with the title by the current owner.
However, it is important to have an understanding of the types of title issues that could present themselves when buying or selling property. These tend to be rare, but it is still important to know of them.
Public Record Problems
One of the errors stems from the public records. In some cases, errors on old paperwork, surveys, or even filing errors could create title problems that are difficult to unravel. You want to make sure that you have protection against these sorts of errors, and other problems that show up. The public records should always be scoured to make sure that everything matches properly.
Illegal Deeds and Forged Documents
There is the rare risk that the deed might be illegal. Even though the chain of title on the property might seem legitimate, there could have been past deeds that were made by someone undocumented, someone who was not of legal age, or someone who was not of sound mind.
There are also cases where documents were forged that have affected ownership of the property. When they are filed in the public records and not discovered right away, it could mean that the person who is selling the property does not have the legal right to sell it.
In some cases, there might be a lien on the property from the past. The people who owned the property previously might not have kept accurate records or they could have unpaid bills that eventually caused a lien to be placed on the house. Although the debt is not yours, banks might still put a lien on a property even after you have closed on the property.
These are just some of the potential problems that could arise with the title of a property. The owner of the property that is selling will want to get a special warranty deed that can protect them from issues that arise from previous owners on the property. These types of issues should also help to highlight just how important it is for new buyers to make sure that they have the title investigated to make sure there are no surprises after they make a purchase.
Fill Out the Document Properly
Fortunately, the document is relatively easy to fill out and prepare. You will need to provide information such as your legal name, address, marital status, and purchase amount. The name of the buyers will need to be added, along with their address. You will need to check the box that indicates how the property will be held by the buyers, the street address of the property that is being transferred, recorded information of the property, legal description for the property, restrictions (if any), and the recording information of the previous deed that transfers the property.
The buyers and the sellers should sign the document in front of a notary public. Additionally, the buyer will want to make sure that the original is filed with the county recorder where the property is located. They need to do this within 60 days of purchasing the property.
Although the documentation is not too difficult, it tends to be a good idea to work with a document preparer. This will ensure it is done correctly. Keep in mind that the language typically needs to be precise and everything must be accurate. Working with a professional can take the guesswork and worry out of the equation.
Get Help with the Documentation
The certified legal document preparers at Modern Law can help you to prepare a wide range of legal documents including special warranty deeds. The cost for the service is $250. Working with the professionals can make it faster and easier for you to get the special warranty deed and to ensure that it has been filled out and signed properly so that it is legal. If you require a special warranty deed in Arizona, quitclaim deed, other real estate legal documents, or other types of legal paperwork or help, get in touch today.