Contrast a general warranty deed with a special warranty deed.

• A. General warranty guarantees against defects from any time in the past; special warranty covers only defects arising during grantor's ownership.
• B. General warranty covers only during grantor's ownership; special warranty covers all past defects.
• C. General warranty does not guarantee title; special warranty does.
• D. General warranty is used only in commercial properties; special warranty only residential.

Answer: (D)

The main idea is understanding how far a deed promises about title quality and when those promises apply. A general warranty deed offers the broadest protection: it guarantees against title problems that could have originated at any time in the past, even before the grantor owned the property, and it promises to defend against claims to the title. A special warranty deed narrows that protection to problems that occurred only during the grantor’s period of ownership, with no guarantee about issues that existed before.

So the accurate description is that a general warranty covers defects from any time in the past, while a special warranty covers only defects arising during the grantor’s ownership. The other statements misstate the warranties: a general warranty does guarantee title, just with broader scope; a general warranty isn’t restricted to commercial transactions and a special warranty isn’t limited to residential properties. In practice, buyers typically prefer general warranties for stronger protection, while sellers may opt for special warranties to limit liability.