A conveyance document of real property provides a guarantee to the new owner, but the extent of that guarantee is restricted. Specifically, the grantor (seller) only warrants against title defects or claims that arose during their period of ownership. This means the grantor is not responsible for issues stemming from prior ownership periods. For example, if a previous owner improperly recorded a lien, the current grantor bears no responsibility, provided they did not contribute to the problem during their time owning the property.
The significance of this type of document lies in its balance of risk. It offers more protection to the grantee (buyer) than a quitclaim deed but less than a general warranty deed. This balance is frequently struck when the grantor has limited knowledge of the property’s history or is unwilling to assume responsibility for issues outside their control. The use of this type of deed can facilitate real estate transactions by mitigating the seller’s liability while still providing a degree of assurance to the buyer. Historically, its use has increased in situations where properties have changed hands frequently or in foreclosure scenarios.
