It is suggested that the language of the special warranty deed be as follows, with the insertion of the specifically applicable circumstances as required:

The grantor covenants to specially warrant the title to the property hereby conveyed against any claim arising from ... [insert the specifically applicable circumstances here.]

When special circumstances exist, the buyer may also request that the United States provide certain indemnifications in order to obtain title insurance. These indemnification agreements establish affirmative measures to be taken by the United States, beyond the basic terms and obligations of its warranty deed, in the event that claims are later made against the property. The indemnification agreement may be included either in the terms of the special warranty deed or in a separate document which incorporates the deed by reference. In either form, indemnification agreements will be limited to the following terms:

1. • The United States will specially warrant its title against defects or clouds arising out of the forfeiture process, and hold the buyer harmless as a result of such defects in title or clouds involving the propriety of the forfeiture of the property.
2. • In the event that a court in a final judgment rules that the United States did not acquire valid legal title to the real property through the forfeiture process and, therefore, was not able to convey clear title to the buyer, the United States will refund to the buyer the amount of the purchase price of the property, plus the value of any improvements made to the property by the buyer. The amount will be paid out of the Assets Forfeiture Fund, plus interest on the total amount at the current rate as provided in 28 U.S.C. § 1961 from the date of the purchase of the property by the buyer to the date of the final judgment.
3. • The United States, by its special warranty deed, does not warrant the title of the prior owner of the property who acquired title before the forfeiture. See Chapter 5 of the Asset Forfeiture Policy Manual ("Use of a Special Warranty Deed and Indemnification Agreement").

[updated May 2010]