Real Property Multistate Bar Practice Exam

A special warranty deed specifically guarantees that the grantor will defend the title against defects that arose only during the period of their ownership. This means that the grantor is only responsible for title issues that occurred while they owned the property, not for any issues related to the property’s history or any defects that predate their ownership. This is in contrast to a general warranty deed, which provides broader protections, covering defects that may arise from both the grantor's and any predecessors' actions.

In the context of the other options, a guarantee against all defects including predecessors' actions would imply a more expansive responsibility than what a special warranty deed provides. Similarly, the idea that the deed would only cover known defects is incorrect, as it encompasses defects that are not necessarily known to the grantor but occurred during their ownership. Finally, claiming that a special warranty deed guarantees full ownership without encumbrances exceeds the scope of what such a deed covers, as encumbrances may still exist despite the special warranty, particularly those that arose prior to the grantor's tenure. Thus, option A accurately reflects the nature and limitations of the guarantee provided by a special warranty deed.