How do Texas Quitclaim Deed Forms Relate to Other Forms of Deeds? However, as noted above, it is important in Texas to distinguish quitclaim deeds from deeds without warranty-due to Texas title insurance companies’ mistrust of quitclaim deeds. The difference in most states is trivial. The names deed without warranty and non-warranty deed are sometimes used as synonyms for quitclaim deed. There is no such thing as a quick claim deed or quick claim deed form. Some people mistakenly call a quitclaim deed a quick claim deed (or quickclaim deed), which is incorrect. Both terms are correct and can be used interchangeably. Other Names for a Texas Quitclaim Deed FormĪ Texas quitclaim deed can also be called a quit claim deed (with a space between “quit” and “claim”). The user-friendly interview guides you through the decisions needed to create the right deed for your situation.
Example of a quit claim deed completed texas software#
Our deed creation software supports both Texas quitclaim deeds and Texas deeds without warranty. This distinction has little practical impact on the parties to the deed, but it is important to most title insurance companies. A person who transfers property through a deed without warranty that includes the grant, sell, and convey language actually transfers the property itself (not just the transferor’s interest).The signer simply releases any interest he or she owns in the property to the person named in the deed.
A person who transfers property through a quitclaim deed does not claim to convey clear title.A Texas deed without warranty lets a property owner accomplish essentially the same result as a quitclaim deed without offending title insurance companies.Ī deed without warranty is like a quitclaim deed in that the current owner is not legally responsible if there are problems with the property’s title. Title insurance plays a large role in modern real estate practice, so it is almost always best to use a deed that title insurers will accept.
Deeds without Warranty as an Alternative to Texas Quitclaim Deeds Because of that risk, title companies are reluctant to insure a property’s title if there is a quitclaim deed in the property’s ownership history-called its chain of title. If the document was unrecorded, it will not turn up in a title examination. Their concern is that there could be problems with the property’s title caused by an earlier unrecorded document. Texas title insurance companies are wary of quitclaim deeds because quitclaim deeds are often made without consideration. The law says that an unrecorded deed or another document that affects a property is “binding on … any subsequent purchaser who does not pay a valuable consideration.” 1 That means that a person who acquires real estate for no consideration-or no value given in exchange for the property-takes title subject to any earlier unrecorded deeds or mortgages on the property. Title insurers’ concern with quitclaim deeds comes from their interpretation of a Texas real estate law. Why are Texas Title Insurance Companies Wary of Quitclaim Deeds? This is because Texas title insurance companies are notoriously wary of quitclaim deeds. They are valid in Texas, too, but much less common. Quitclaim deeds are common for real estate transfers in most states. Using a Deed Without Warranty Instead of a Texas Quitclaim Deed The new owner simply receives whatever interest (if any) that the person who signs the deed can legally transfer. That means the person who signs the deed does not guarantee that he or she actually owns the real estate or that the new owner will receive a clear title. A quitclaim deed provides no warranty of title. Just complete a user-friendly interview and get a customized deed that is attorney-designed to meet Texas recording requirements.Ī Texas quitclaim deed form is a specific type of deed that releases to a new owner (called the grantee) whatever interest is owned by the person signing the deed (called the grantor). Our deed creation software makes it easy.
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