A Pennsylvania special warranty deed is used when a real estate seller (the grantor) transfers ownership to a buyer (the grantee) and partially guarantees the property against encumbrances. This deed warrants that the real estate did not incur liens or other title issues during the grantor’s time of ownership. However, title defects occurring before the grantor acquired the property are not covered by a special warranty deed.
Because the warranty provided in this deed is limited, the grantee runs the risk of encountering latent title issues caused by previous owners. To mitigate this risk, individuals will often seek protection in the form of title insurance.
- Statutes: 21 § 6
- Formatting: Requirements differ by county; individuals should check with the Recorder of Deeds’ office to see what is required in their area.
- Signing Requirements (21 § 42): Notarial Acknowledgment
- Where to Record (21 § 351): County Recorder of Deed’s office
- Recording Fees: No fixed amount; filers can expect to pay around $80 to $100.
- Exemption Statement: If the transfer is wholly exempt from transfer tax, the deed must state this information.
- Forms:
- Property Disclosure Statement (68 § 7303): Purchasers of residential real estate must receive this disclosure from the seller to be notified of material defects that might affect the property value.
- Form REV-183 (Realty Transfer Tax Statement of Value) (42 § 21053): Must be filed alongside the deed when the transfer tax isn’t being paid in full, or when the full consideration isn’t reported in the deed.
- Coal Severance Notice (52 § 1551): This notice must be included in the deed if there has been a severance of coal below the property’s surface.
- Bituminous Coal Notice (52 § 1406.14): This notice must be signed by the grantee and included in the deed if the following conditions apply:
- Bituminous coal has been discovered on the property and is being taxed separately; and
- The deed does not certify whether the land is supported by bituminous coal.