Ace the Alabama Real Estate Exam 2024 – Unlock Your Dream Career!

A Special Warranty Deed is a type of real estate deed that conveys land or property with a limited guarantee from the seller, providing protection against any issues or encumbrances that may have occurred during the seller's ownership. A General Warranty Deed, on the other hand, offers a more comprehensive protection to the buyer, including any issues that may have occurred prior to the seller's ownership. Option A is incorrect because a Special Warranty Deed does not offer the same level of protection as a General Warranty Deed. Option C is incorrect because a Special Warranty Deed is not limited to only rental properties, it can be used for any type of property. Option D is incorrect because a Special Warranty Deed does not prevent all future encumbrances, it only covers those that may have occurred during the seller's ownership. Option B is the correct answer because it is the only option that