In most cases when real estate is transferred it is done by way of General Warranty Deed. In certain cases where the seller wishes to limit their liability for defects in title that arose proper to obtaining ownership they will use a Special Warranty Deed to transfer title to the new owner. A special warranty deed provides the protection that the seller is not responsible for any defects in title that existed prior to them having become the owner of the real estate. The seller only provides a warranty against defects arising from their own acts or omissions by a third-party claiming against the title of the property based on those actions. Unlike a quit claim deed this does provide some level of protection for the buyer of real estate against defects in title caused by the seller. With the current popularity of REO purchases from banks the case of Chicago Title Insurance Co. v. Aurora Loan Services, LLC, 2013 Ill. App (1st Dist.) 123510, 996 N.E.2d 44 (August 30, 2013) is a case in point where the Special Warranty Deed served to protect the seller from claims made against the title company by the buyer after it was discovered that the property had been the subject of a tax sale. The court noted that the language of the deed was unambiguous and stated that seller only warranted against defects resulting from its affirmative actions. The tax sale had occurred prior to the seller/bank acquiring title. The court found for the defendant stating that since the defect occurred prior to Aurora Loan Services being placed in the position of titleholder and with the clear language of the deed no liability accrued to the defendant. One moral of this story is READ THE LANGUAGE OF THE DEED!