Alabama Real Estate Practice Exam

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What is unique about a Special Warranty Deed?

  1. It offers the same protections as the General Warranty Deed

  2. It only covers the actions of the person conveying the title

  3. It is only valid for rental properties

  4. It prevents all future encumbrances

The correct answer is: It only covers the actions of the person conveying the title

A Special Warranty Deed is a type of real estate deed that conveys land or property with a limited guarantee from the seller, providing protection against any issues or encumbrances that may have occurred during the seller's ownership. A General Warranty Deed, on the other hand, offers a more comprehensive protection to the buyer, including any issues that may have occurred prior to the seller's ownership. Option A is incorrect because a Special Warranty Deed does not offer the same level of protection as a General Warranty Deed. Option C is incorrect because a Special Warranty Deed is not limited to only rental properties, it can be used for any type of property. Option D is incorrect because a Special Warranty Deed does not prevent all future encumbrances, it only covers those that may have occurred during the seller's ownership. Option B is the correct answer because it is the only option that

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