![]() If the property has no title issues, it is said to have clear title. Title issues often require legal action to fix and can decrease the value of real estate. Title issues can be caused by many things, including errors in the public record, unknown liens against the property, undisclosed prior conveyances, forged deeds, missing heirs or unprobated wills, or disputes about boundary lines or surveys. But, unlike a quitclaim deed, a deed without warranty actually transfers property instead of just releasing it. A deed without warranty is like a quitclaim deed in that the seller is not liable for any title defects. Because of this risk, title insurance companies are reluctant to insure title to property when there is a quitclaim deed in the chain of title.īecause of the role of title insurance in modern real estate practice, it is always better to use deeds that satisfy title insurance companies. That Section states that unrecorded instruments are “binding on … any subsequent purchaser who does not pay a valuable consideration.” Some title insurance companies believe that transfers made without consideration-as quitclaim deeds often are-are subject to risk of a prior conveyance. The problem has to do with how title insurance companies interpret Texas Property Code § 13.001(b). Texas title insurance companies are notoriously wary of quitclaim deeds. The problem isn’t with the validity of the deed, but with title insurance. Quitclaim deeds are valid in other states, and they are also valid in Texas. The Problem with Quitclaim Deed Forms in Texas As discussed below, a deed without warranty is often a better choice for transferors that want to transfer Texas real estate without a warranty of title. But there are problems with using a quitclaim deed form in Texas. Because of this, many people are told that they need a quitclaim deed to transfer Texas real estate. Quitclaim deeds are very common and can be used without problems in most other states. The person that signs the deed does not guarantee that he or she owns or has clear title to the real estate described in the deed. Get DeedĪ Texas quitclaim deed form is a specific type of deed that releases whatever interest is owned by the person signing the deed. ![]() This language is automatically included by our deed preparation service and valid in all Texas counties. Special language is required to ensure that the deed qualifies as a quitclaim deed. In other circumstances where the current owner does not want to be legally responsible for problems with title.From someone who no longer wishes to hold title (removing someone from the deed) or.To someone who will own the property with the current owners (adding someone to the deed).To a living trust or business owned by the current owner.To change the nature of marital property.To a spouse or other family member as a gift.In Texas, quitclaim deeds are often used if the property is being transferred: It makes no promises about whether the current owner has clear title to the property. ![]() The Texas quitclaim deed form gives the new owner whatever interest the current owner has in the property when the deed is signed and delivered.
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