Question: I'm about to buy a home and will be given a limited warranty deed. I am told that it has back taxes that have to be paid by a specific time. Is it possible to have the back taxes removed after purchase or does that mean I am open to other claims?

Answer: A "limited" or "special" warranty deed says the owner is selling the property with good title but with encumbrances such as unpaid taxes.

An offer can be written to require the owner, as a condition of the sale, to pay all outstanding property taxes. Typically there will be "adjustments" at closing so that property taxes are paid or credited up to the date of settlement.

Why accept a special warranty deed? Did you get a discount or other benefit by not demanding a general warranty deed?

Please have a real estate attorney review the matter for specifics.

Published: November 27, 2007

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