What is a Limited Warranty Deed?

It means that the seller is limiting the way that they will guarantee the title. In a general warranty deed the seller is guaranteeing that the title is completely clear, that there are no liens and that no one else has any claims to the property. In a limited warranty the seller is guaranteeing some things but not everything, depending on the language in the deed. For example they may be guaranteeing that they have never allowed a lien to be placed on the property but they won't promise that someone in the past didn't have any liens placed against property.

If you are receiving a limited warranty deed when you purchase property then it's okay as long as you're also getting a clear title insurance policy at the same time.