Special Warranty Deed
(Residential Transaction) (MD)

Summary

This special warranty deed template is for use by a seller in a Maryland residential purchase and sale transaction to convey title to a buyer via special warranty. This template includes practical guidance, drafting notes, and alternate and optional clauses. Special warranty deeds are the customary type of deed used in Maryland conveyances. See Customary Encumbrance Forms State Law Survey. A special warranty deed warrants title against anyone claiming a right to the real property that is the subject of the deed by, through, or under the grantor and does not warrant the entire chain of title of the property from its first conveyance. Md. Code Ann., Real Prop. § 2-106. A deed presented for recording must be accompanied by the land instrument intake sheet, endorsed with the certificate of the county tax collector showing that all taxes, assessments, and charges have been paid; and accompanied by a copy of the deed, and any survey, for submission to the Department of Assessments and Taxation. Md. Code Ann., Real Prop. § 3-104(a). The lack of an intake sheet does not affect the validity of the conveyance. Md. Code Ann., Real Prop. § 3-104(g)(10)(iii). In addition, a deed conveying real property owned by a nonresident will not be recorded unless income tax is appropriately withheld and reported on Form MW506NRS. Md. Code Ann., Tax-Gen. § 10-912(c); Md. Code Regs. 03.04.12.05(B). A resident entity may claim an income tax withholding exemption by certifying that the grantor is a Maryland resident entity in the recitals or the acknowledgment of the deed, or in an affidavit signed by the grantor or its agent that accompanies and is recorded with the deed. Exemptions from withholding are set forth in Md. Code Ann., Tax-Gen. § 10-912(d). Local formatting and recording rules may differ based on the county where the real property is located. It is a best practice to consult the county recorder's office for more specific requirements. For templates of other deeds to use in residential transactions in Maryland, see Quitclaim Deed (Residential Transaction) (MD) and General Warranty Deed (Residential Transaction) (MD). For templates of deeds to use in commercial transactions in Maryland, see Quitclaim Deed (Commercial Transaction) (MD), General Warranty Deed (Commercial Transaction) (MD), Warranty Deed (Statutory) (Commercial Transaction) (MD), and Special Warranty Deed (Commercial Transaction) (MD). For more information on commercial real estate ownership in Maryland, see Commercial Real Estate Ownership (MD). For more on deeds in general, see Types of Deeds and Key Provisions. See also Thompson on Real Property, Thomas Editions § 82.04, Powell on Real Property § 81A.03, 1-2 Maryland Real Estate Forms § 2.24.2, and Md. Real Prop. Code Ann. § 2-106. For information on deed transfer taxes, see Deed Transfer Tax State Law Survey. For general information on recording real property documents, see Recording Real Property Documents. See also Uniform Real Property Electronic Recording Act State Law Survey. For further guidance on acknowledgments, see Statutory Forms of Acknowledgment State Law Survey. For a full listing of key content covering purchasing and selling residential real estate, see Purchasing and Selling Residential Real Estate Resource Kit. For a full listing of key content covering purchasing and selling commercial real estate, see Purchasing and Selling Commercial Real Estate Resource Kit. See also Junior Associate Real Estate Resource Kit (Commercial Purchase and Sale). For a list of key resources covering real estate-related tasks for associates, in-house attorneys, and interns, see First Year Associate Resource Kit: Real Estate, Summer Associate Resource Kit: Real Estate, In-House Real Estate Resource Kit, and Federal Government Summer Intern Resource Kit: Real Estate.