Which type of deed limits the liability of the grantor to only their period of ownership?

The correct answer is that a special warranty deed limits the liability of the grantor to only their period of ownership. This means that the grantor guarantees that they have not caused any title issues or defects during the time they owned the property, but they do not make any guarantees about issues that may have arisen prior to their ownership.

This type of deed often appeals to sellers who wish to offer some level of protection to the buyer without taking on the full liability that comes with a general warranty deed, where the grantor warrants the title for the entire history of the property. Special warranty deeds are commonly used in transactions involving commercial properties or foreclosures where the seller may not have full knowledge of the property's history.

In contrast, a general warranty deed provides the highest level of protection for the buyer, as it covers the entire chain of title. A quitclaim deed transfers whatever interest the grantor may have without any warranties at all, leaving the grantee with no assurances regarding the property title. A deed of trust is not a type of deed used for transferring ownership but rather a security instrument used to secure a loan with real property as collateral. Therefore, a special warranty deed is the best answer as it aligns with the concept of limiting a grantor