2258

Circumstances for the Use of a Special Warranty Deed

The Department recognizes that in some situations the use of the Marshal's quitclaim deed will not be sufficient for title company requirements to insure title for a purchaser of forfeited property. Such limited circumstances include the following situations: The owner of the defendant property is a fugitive and the government cannot prove the fugitive was served in the forfeiture action. The owner of the defendant property is a fugitive and title to the property is held by a constructive trustee. One of the owners of the defendant property is a fugitive who holds title to the property in a cotenancy with innocent owners. The owner of the defendant property dies before or during the forfeiture process and there is some question of proper service or substitution of the successors or representatives of the deceased party. The owner of defendant property is a United States or foreign corporation and the United States cannot prove that the corporation was properly served in the forfeiture action. The forfeiture is subject to a pending appeal. Such other situations in which a special warranty deed with certain indemnification provisions or a separate indemnification agreement is appropriate (e.g. jurisdictions in which title insurance is unattainable without such a deed.) If such special circumstances exist, the Marshal in consultation with the United States Attorney may execute a special warranty deed to the buyer specifically warranting against claims arising from the applicable circumstances as listed, supra. Such special warranty deeds are permitted by the authority delegated to the Marshal in 28 C.F.R. § 0.156. [cited in Criminal Resource Manual 2259; USAM 9-115.400; USAM 9-115.421]