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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