Mississippi Special Warranty Deed Form

What Is a Mississippi Special Warranty Deed Form?

A Mississippi special warranty deed is a legal document used to transfer Mississippi real estate from one party (the grantor) to another (the grantee).¹ The special warranty deed provides a more limited level of protection to the grantee compared to a general warranty deed. In a special warranty deed, the grantor guarantees only against title defects or encumbrances that arose during their ownership of the property. Any title issues that occurred prior to the grantor’s ownership are not covered by the special warranty deed. This means that the grantee assumes the risk of any undisclosed title defects originating before the grantor took possession of the property.

What Is Warranty of Title?

A warranty of title refers to the legal assurances provided by the grantor in a deed regarding the validity and clarity of the property’s title. The warranty of title guarantees that the grantor has the legal right to transfer the property and that the title is free from defects or encumbrances, such as liens, easements, or other claims that could affect the grantee’s ownership rights.

In a Mississippi special warranty deed, the warranty of title is limited to the period of the grantor’s ownership. This means that the grantor is only responsible for defending the grantee’s title against claims or defects that arose during the time the grantor held the title to the property. Any issues that existed before the grantor’s ownership are not covered by the limited warranty of title in a Mississippi special warranty deed, and the grantee bears the risk of such defects.

Other Names for a Mississippi Special Warranty Deed Form

While the term special warranty deed is used in many states, some jurisdictions may use alternative names to refer to the same type of document. These names can include:

• Limited warranty deed. This term emphasizes the more limited guarantees provided by the grantor compared to a general warranty deed. The term limited warranty deed is often used interchangeably with special warranty deed. Kansas and Ohio are examples of states that use limited warranty deeds.
• Grant deed. In some states, like California, a grant deed may serve a similar function to a special warranty deed. However, the specific warranties provided in a grant deed may differ from those in a special warranty deed. It is essential to understand the unique features of grant deeds in states where they are used.
• Bargain and sale deed. In a few states—including Nevada, New York, and Washington—a bargain and sale deed can be used to transfer real property with limited warranties. This type of deed usually guarantees that the grantor has not personally created any title defects but does not cover issues that may have arisen before the grantor’s ownership.

Even though the terminology may differ, the primary purpose of these documents remains consistent: to transfer real property from the grantor to the grantee with limited warranties covering only the period of the grantor’s ownership.

How Do Mississippi Special Warranty Deed Forms Relate to Other Forms of Deeds?

In Mississippi, there are three main types of deeds used to transfer real property: warranty deeds, special warranty deeds, and quitclaim deeds. Each type of deed offers different levels of protection and guarantees to the grantee.

• Mississippi warranty deed form. A Mississippi warranty deed form provides the grantee with the most comprehensive protection. The grantor guarantees that they have a clear title to the property and will defend the grantee’s ownership rights against any claims or defects arising throughout the entire history of the property, not just during the grantor’s ownership.
• Mississippi special warranty deed form. As discussed above, a Mississippi special warranty deed form provides a more limited form of protection. The grantor guarantees only against title defects or encumbrances that occurred during their ownership of the property, without covering any issues that arose before they took possession. This type of deed is less protective for the grantee compared to a general warranty deed.
• Mississippi quitclaim deed form. A Mississippi quitclaim deed form offers the least protection to the grantee, as it contains no warranties or guarantees regarding the title. The grantor only transfers whatever interest they may have in the property, without ensuring that they have a valid title. Quitclaim deeds are typically used in situations where the parties have a pre-existing relationship or when they are not concerned about potential title defects.

A Mississippi special warranty deed offers limited protection and warranties to the grantee compared to a general warranty deed, while quitclaim deeds provide no assurances or guarantees at all.

Mississippi Title Insurance and Special Warranty Deeds

Title insurance is a type of indemnity insurance policy that protects the grantee (buyer) and their lender from financial loss resulting from defects or encumbrances in the property’s title. Title insurance is typically purchased during the closing process of a real estate transaction.

When a Mississippi special warranty deed is used, the grantee might consider purchasing a title insurance policy due to the limited warranties provided by the grantor. Since the special warranty deed only covers title defects or encumbrances that occurred during the grantor’s ownership, a title insurance policy can help protect the grantee against potential claims and issues that arose before the grantor took possession of the property.

A title insurance policy generally covers the grantee up to the policy’s coverage amount, which is typically the purchase price of the property. The policy remains in effect for as long as the grantee or their heirs own the property. If a covered title defect or claim arises during that time, the title insurance company may either defend the grantee’s title, pay to correct the defect, or compensate the grantee for any financial loss incurred due to the claim.

Mississippi Special Warranty Deed Forms and Mississippi Estate Planning Deeds

In Mississippi, there are several types of deeds that can be used for estate planning purposes, including life estate deeds and transfer-on-death deeds. While a special warranty deed is primarily used for transferring real property with limited warranties, these estate planning deeds serve different purposes:

• Mississippi life estate deed form. A life estate deed allows the grantor to transfer property ownership while retaining the right to use and occupy the property for the remainder of their life. Upon the grantor’s death, the property automatically passes to the named remainder beneficiaries without going through probate. However, the grantor cannot sell or mortgage the property without the consent of the remainder beneficiaries.
• Mississippi transfer-on-death deed form. Mississippi law allows the grantor to use a transfer-on-death deed to designate beneficiaries who will receive the property upon the grantor’s death, without the need for probate. The grantor retains full ownership rights and can change the beneficiaries or revoke the deed at any time during their lifetime.

Common Uses of Mississippi Special Warranty Deed Forms

A special warranty deed in Mississippi is commonly used in various real estate transactions where the grantor is willing to provide limited title guarantees. Some common uses for a special warranty deed in Mississippi include:

• Real estate transactions involving commercial properties or investment properties. In these cases, the grantor may have limited knowledge about the property’s history and may not be willing to provide full warranties as in a general warranty deed.
• Transactions involving bank-owned properties or properties acquired through foreclosure. Financial institutions or other entities that have acquired properties through foreclosure may use a special warranty deed to limit their liability for potential title defects that existed before their ownership.
• Transactions involving properties that have changed hands multiple times or have a complex ownership history. In such situations, the grantor may be unwilling or unable to provide full title warranties covering the property’s entire history.
• Transactions between parties with a pre-existing relationship, such as family members or business partners. In these cases, the parties might be comfortable with the limited warranties provided by a special warranty deed because they trust each other and have a better understanding of the property’s history.

How to Create a Mississippi Special Warranty Deed

As with any deed, a Mississippi special warranty deed should be customized to reflect the specific terms and conditions of the transaction. Reliance on fill-in-the-blank forms can lead to invalid documents and future title issues. Certain requirements must be met, and specific information must be included in the document:

• Identify the parties. Clearly identify the grantor (the person transferring the property) and the grantee (the person receiving the property).
• Include a legal description of the property. Provide a detailed and accurate description of the property being transferred, including the property’s address, parcel number, and any relevant legal descriptions or plat references.
• Specify the limited warranty. Include a statement outlining the limited warranty being provided by the grantor, clarifying that the grantor is only responsible for title defects that occurred during their ownership of the property.
• Consideration. State the consideration for the transfer, which is typically the purchase price or other valuable consideration provided by the grantee.
• Signing. The grantor must sign the special warranty deed in the presence of a notary public, who will then notarize the document.
• Recording. Once the special warranty deed has been executed and notarized, it must be filed with the appropriate county recorder’s office or land records office in the county where the property is located. This will ensure that the transfer is properly recorded and provide public notice of the change in ownership.

1. See Miss. Code Ann. § 89-1-35.