Special Warranty Deed

[jenn_dun_80]

One of the lots I'm looking at has everything on it. Water, phone, electric and sewer. It has an old mobile home that will need to be removed because it's falling down. The only thing keeping me from buying is that it has a special warranty deed. I'm not really sure what it is or if I should be leery of it. It's listed as abandoned home on acreage it makes me worried who ever abandoned it will come back for it.  What do you think. Should I run or is it okay as long as they have a deed.

[Tickhill]

Time for a visit a lawyer I would think.
Due diligence is priceless, small investment on the front end to find out the pros/cons of this deed.

[Redoverfarm]

I agree with Tickhill.  I would not even consider buying unless the deed was checked out.  Just looking initially at the term used I found the following:

The special warranty deed is not nearly as protective of the buyer as is the general warranty deed. The grantor of a special warranty deed conveys the property with two warranties:

•The grantor warrants that they have received title.
 •the grantor warrants, unless noted specifically in the deed, that the property was not encumbered during their period of ownership.

 The grantor of the special warranty deed, in effect, only warrants the title against their own actions or omissions. They warrant nothing prior to their taking title. If specifically stated in the deed, other warranties can be conveyed. Special warranty deeds are frequently used by executors and trustees.
 
I believe that this is very similar to what is called a "quick claim deed".  In the special warranty deed, the grantor warrants that neither he nor anyone claiming under him has encumbered the property and that he will defend the title against defects arising under and through him, but no others.

Just some food for thought while you ponder.

[jenn_dun_80]

thanks so much.

I have another question about another lot. Does this seem odd.  It's looks like it's been sold three times in the last two years. I did a search on the coordinates of the lot he gave me. He's tried to sell it on ebay three different people won. Financing it each time but once and that person no feedback so I can't tell if the sell went through. I found the lot on his site not ebay and it's listed for half what he was selling it for on ebay. I know it's ebay and a lot of people don't buy when they bid but three times seems like somethings off. I'm going to take a trip to look at the land. I did a title search and he does own the property. I'm just not sure what else I should look for.

When I look for a property lawyer do I look in the state that I live in or the state the property is in?

[rick91351]

State the property is in. 

You might even talk to the title insurance people and see with it would cost to find out if there is a lot of muddy water here. 

However a clear deed should show up.  However I would never buy sight unseen.  Look for the over looked and the the obvious as well.   You know stuff like airports, sewage lagoons, gravel pits, refineries, chemical plants.  Then research for under ground spills and plumes.  Remember they can travel long distances.  Just to name a few.....

   Rick     

[Squirl]

I second rick.  The state the property is in. 

Look for a flat fee real estate attorney.  $500-$1000 per property is the norm in my area (north east part of the country)  They will right into any agreement for sale a clear title search and title insurance.

Ebay properties are generally a red flag.  They are rarely good in my opinion.  They are for people looking to dump a piece of land.  The property changing hands three times in two years isn't a red flag if they were like party transactions and not at arm’s length. (example: decedent transfers to survivor who sells)  If they are three arms length transactions without subdivisions or improvements, run fast.

Coordinates of a lot?  When I used to look, I saw a lot of those on ebay.  Most of the properties like that I had seen have no legal access and are known as "landlocked"  Getting a defined easement or a road normally consists of very costly litigation and is usually never worth it.  In my experience, individuals selling will give you a song and dance as to why it doesn't matter.  It does.  In many jurisdictions, without legal access for emergency vehicles, they will not issue a building permit.

I'm always an advocate of getting a passing inspection for conventional (vs. alternative) septic clause into any sale contract.  It is cheaper to pay a lawyer and septic tester a few hundred dollars, than spend thousands on a property that needs a $20,000 septic system.

There is a saying that all land is buildable for the right price.  The question is, “Are your pockets deep enough to get something built on it?”

[jenn_dun_80]

Thanks everyone.

All utilities are city, electric, water, sewer and at the property edge. I'm guessing I have to pay to have it hooked to the mobile home I plan to live in while I build.  I'm going to go look at it. I'd never buy sight unseen. It doesn't have an address so he gave me the gps coordinates so I could google search the area. The picture he sent has a road that goes in front of the property. I'm going to check it out and I'm sure I'll have a ton of questions afterwards. Thanks so much for the help.

[mgramann]

If I'm honest, reading this I get a funny feeling.  It might be ok, but be weary of GPS coordinates.  Look at the deed, and make sure the coordinates match up with it.  You would hate to fall in love with a property that doesn't match the deed!

Sometimes strange situations can lead to good deals, but you need to be careful and protect yourself.

[MountainDon]

I can believe that there is no street address and that a GPS or a guide may be the only way to find the property. Our property in the mountains here was like that and so is the privately owned property around us. Most owners have not requested a street address. For a building permit that is likely necessary. It may also be a good idea for 911 purposes. So that alone is not necessarily any worry.

But as was suggested a real estate attorney, a lawyer who specializes in real estate is your best friend when it comes to looking at properties especially when you or I, the prospective buyer, are babes in the woods on the subject. You should be able to find one for a flat fee. Ours specialized in real estate and divorce; because they often go hand in hand.   Ours found several "terrible things" in the offered land deal we were looking at. Terrible was the words he used. Maybe some wan't all that terrible. However, each one was corrected or changed to suit him. And now we are very happy indeed.

[rick91351]

If I'm honest, reading this I get a funny feeling.  It might be ok, but be weary of GPS coordinates.  Look at the deed, and make sure the coordinates match up with it.  You would hate to fall in love with a property that doesn't match the deed!

Sometimes strange situations can lead to good deals, but you need to be careful and protect yourself.

I so agree.  Also has this property been surveyed and recorded.  Beware pins can be moved and changed.  They can be dug up and replanted as soon as they are set.  The pins are merely marker left by a surveyor.  Now a USGS Bench Mark is a whole other story.

Also as squirl posted read and reread his wisdom.  A lot can be sold but if it is land locked with no easement what good is it.  And his comments run deep and true do not assume you can get a conventional septic in.  Can you even get a well in because of neighbors septic systems?

Find out how the water is.  Some places well water is not drinkable.  High sulfurous content or iron really is a drag.  Can't drink it, washed clothes come out with rust spots.     

[MountainDon]

Thanks everyone.

All utilities are city, electric, water, sewer and at the property edge.

septic is a non issue.

The fact that a road passes by the property line may be a good sign that the property is NOT landlocked. However it would be wise to know what the municipality, town/city or county has to say about making an access road if there is not already a genuine road access. This could cost a little if culverts or whatever need to be installed. Very likely the officals may have a minimum road width and minimum construction standards. In case things like heavy fire engines or EMT vehicles are ever called on. A lawyer can help with all that.

[rick91351]

septic is a non issue.

Opps I guess water is as well!     Get it Well - Well --- water.  Oh Well grabbing the metal detector and out the door.........

[jenn_dun_80]

We went and looked at the other lot that had been sold and resold. Turns out there is no way to get to the land.  So I guess I'm going to keep looking for land.