Special Warranty vs. General Warranty Deeds in Colorado: What Your Deed Actually Promises
The deed is the document that transfers ownership, but deeds make different promises about title. A general warranty deed and a special warranty deed can look almost identical on the page. The difference shows up only if a title problem appears after closing, and that is when it matters most.
This article explains the deed forms Colorado law recognizes, what each one promises, what the common phrase "subject to statutory exceptions" actually covers, and how title insurance fits in.
The four statutory deed forms in Colorado
Colorado's statutory deed forms are set out in one statute, C.R.S. 38-30-113. A 2019 law, House Bill 19-1098, consolidated them there, effective March 7, 2019, and repealed the older separate sections for bargain and sale and quitclaim deeds. Older articles that cite those repealed sections are out of date.
The statute provides four forms:
General warranty deed: full statutory warranties, including a promise to defend title against claims by anyone, subject to the exceptions stated in the deed.
Special warranty deed: a promise to defend title only against people claiming by or through the seller.
Bargain and sale deed: no warranties of title, but it passes title the seller acquires later.
Quitclaim deed: no warranties of title, and it does not pass title the seller acquires later.
General warranty deed
A general warranty deed carries the broadest promises. Under the statute, the seller covenants that, when the deed is signed, the seller owns the property in fee simple and has the right to convey it. The seller also covenants that the property is free of encumbrances except those stated in the deed, that the buyer will have quiet and peaceable possession, and that the seller will defend the title against claims. These promises reach back through the chain of title, not just to the time the seller owned the property.
Special warranty deed
A special warranty deed limits the seller's promise to defend title. The seller defends only against persons claiming title by or through the seller. In plain terms, the seller stands behind problems the seller created during their ownership, such as a lien the seller placed on the property. The seller does not promise anything about problems that came from earlier owners.
The special warranty deed matters in Colorado because it is the default in the Colorado Real Estate Commission's standard residential purchase contract. Under that contract, the seller delivers a special warranty deed unless the parties select a different type.
Bargain and sale deed
A bargain and sale deed conveys the property without covenants of warranty. Under the statute, it does pass the seller's after-acquired title, meaning title the seller obtains after signing the deed. Bargain and sale deeds are sometimes used when the seller is a lender that acquired the property through foreclosure or another party with limited knowledge of its history.
Quitclaim deed
A quitclaim deed transfers whatever interest the seller has, if any, with no covenants of warranty, and the statute states that it passes no after-acquired title. Quitclaim deeds are commonly used to clear up title issues, transfer property between family members, or move property between spouses or into an entity, where no one expects warranties. They are rarely appropriate for an ordinary arm's-length sale.
What does "subject to statutory exceptions" mean?
Many Colorado warranty and special warranty deeds say the title is conveyed "subject to statutory exceptions." That phrase is defined by statute, and it limits the warranty more than many buyers realize. Statutory exceptions include:
Real estate taxes for the year of the conveyance and later years that are not yet due and payable;
Matters that an improvement survey plat would have disclosed, or that an inspection of the property could have revealed, but only if the seller did not create or otherwise know about them; and
All matters recorded in the real estate records of the county clerk and recorder where the property is located.
The third category is the one to understand. A deed conveyed "subject to statutory exceptions" does not warrant against recorded easements, covenants, liens, or other documents in the county records. A buyer protects against recorded matters by reviewing the title commitment and objecting during the contract's title deadlines, and through title insurance, not through the deed's warranty.
The statute also addresses how title companies prepare deeds. When a licensed title insurance entity prepares a deed with a warranty of title in connection with issuing a title policy, the deed must use the words "subject to statutory exceptions" and no other terms, unless both the seller and the buyer (or their authorized agents) instruct otherwise in writing.
Does a warranty deed replace title insurance?
No. A deed warranty and an owner's title insurance policy are different kinds of protection:
A deed warranty is a promise by the seller. Enforcing it means making a claim against the seller, who may be hard to find, may lack the money to pay, or may be a dissolved entity or an estate that has closed. The warranty is also limited by the exceptions stated in the deed.
An owner's title insurance policy is a contract with an insurance company, subject to the policy's own terms, exclusions, and exceptions. Which risks it covers depends in part on whether the buyer obtains extended coverage that removes some standard exceptions.
In practice, most Colorado buyers rely primarily on title review during the contract period and on the owner's policy, and treat the deed warranty as a secondary layer. Which layer responds to a particular problem depends on the problem, the deed, and the policy.
Hypothetical example: A buyer receives a special warranty deed. A year later, a neighbor raises a claim that traces back to something that happened two owners ago, before the seller bought the property. Because the special warranty covers only claims arising by or through the seller, the deed warranty likely would not reach it. Whether the buyer's owner's policy covers the claim would depend on what the claim is, whether it falls within a policy exception, and whether extended coverage was purchased. Different facts could produce a different result.
Other deeds you may see in Colorado
Fiduciary deeds. When a seller acts in a representative capacity, the deed is often titled to reflect it, for example a personal representative's deed from an estate. The standard contract includes a personal representative's deed as one of the deed options. A fiduciary seller typically makes limited or no personal warranties, and the title company will usually require proof of the fiduciary's authority.
Beneficiary deeds. Colorado allows an owner to sign and record a beneficiary deed that transfers the property to a named beneficiary at the owner's death. To be effective, the deed must be recorded before the owner dies. The transfer takes effect only at death, and the beneficiary's consent is not needed while the owner is alive. A beneficiary deed is an estate planning tool, not a way to sell property.
Deeds from LLCs, corporations, and trusts. When an entity holds title, the title company will want evidence of who can sign for it. Colorado law allows an entity to record a statement of authority identifying the entity and the person authorized to sign documents affecting title. Once recorded, the statement is prima facie evidence of those facts as they affect title to real property.
How a deed is signed and recorded
The seller signs the deed, and it is typically acknowledged before a notary, which is how the statutory forms are set up. After closing, the deed is recorded with the county clerk and recorder. Recording is not what makes a deed valid between the seller and buyer. But Colorado has a race-notice recording statute, so an unrecorded deed generally is not valid against a later buyer or lender who records first without notice of it. Recording a deed usually also involves the state documentary fee and a real property transfer declaration, discussed in our closing article.
Colorado also has an after-acquired title statute. If someone conveys land by a deed that purports to convey fee simple title before actually owning it, and later obtains the title, the law treats that title as held for the benefit of the buyer. As noted above, the statutory quitclaim deed is designed not to pass after-acquired title.
Choosing a deed: practical considerations
Buyers: Read the deed section of the contract before signing. If a special warranty deed is the default and you want broader protection, negotiate for a general warranty deed. Either way, focus on title review and on the coverage in the owner's policy.
Sellers: A general warranty deed exposes you to claims about title problems created before you owned the property. That exposure is one reason sellers often prefer the special warranty default.
Family and estate transfers: A quitclaim deed may be simple, but it can create problems for title insurance, financing, and later sales. Consider the whole picture, including tax and estate planning effects, before choosing a deed.
Entities, trusts, and estates: Expect the title company to require documents showing the signer's authority, and allow time for them.
The bottom line
In Colorado, the type of deed determines what the seller promises about title after closing, and the phrase "subject to statutory exceptions" removes recorded matters from those promises. For most buyers, the stronger protection comes from careful title review during the contract and a well-understood owner's title policy, with the deed warranty as a backstop.
This article provides general information about Colorado law and is not legal advice. Reading it does not create an attorney-client relationship with Proper Tea Law. Laws change, and the effect of any deed or title policy depends on its specific terms and the facts involved. For advice about your situation, consult an attorney licensed in Colorado.