A Colorado special warranty deed facilitates property transfers between a grantor and grantee while providing the grantee with a limited warranty of title. This limited warranty essentially states that the grantor didn’t do anything to encumber the title, but they can’t speak for any previous owners and don’t provide any assurances as to what they did while they were owners. The burden to resolve any encumbrances, easements, mechanics liens, or other title defects made by prior owners will fall to the grantee.

Furthermore, the grantee is assured that the conveyed property has not been transferred to another party and that the grantor has the legal authority to sell it.