What does a special warranty deed guarantee?

A special warranty deed guarantees that the seller has not impaired the property's value during their ownership. This type of deed provides a limited warranty, meaning that the seller is only responsible for issues related to the title that occurred while they owned the property. Unlike a general warranty deed, which assures that the title is free of defects from the very beginning of ownership, a special warranty deed limits that assurance to the time in which the seller held the title. Therefore, the buyer can expect that the seller did not create any issues or encumbrances during their ownership period, but may still need to conduct due diligence regarding any prior ownership.

The other options do not accurately reflect the provisions of a special warranty deed. The assurance of a clear title or full ownership rights typically falls under general warranty deeds, while retaining rights to the property is not a feature of deeds but rather a characteristic of certain types of ownership arrangements.