Quitclaim deeds are the ultimate “buyer beware” of real estate transactions.īuyers of property are not the only ones wary of quitclaim deeds.
It is possible for a grantee to pay valuable consideration for a quitclaim deed that does not provide title to anything, and have no recourse against the seller. Simply put, the buyer is being given a deed that claims to transfer some title to property, but makes no guarantees or warranties regarding that claim. The very nature of a quitclaim deed should make a buyer wary. Reasons To Be Wary Of Using A Quitclaim Deed In Texas This is true even if they ultimately transfer nothing at all. This means that the purchaser of property through a quitclaim deed cannot be confident they have valid title to the property.ĭespite all of this, quitclaim deeds are still a valid, if unreliable, means of transferring title to real property in Texas. By contrast, a quitclaim deed makes no warranties or promises about the quality or validity of the title. This is distinct from a warranty deed, which warrants that the title being granted is valid. A quitclaim deed can often not be used to establish title on its own. A quitclaim deed can therefore transfer anything from a fee simple interested in a property to nothing at all, depending on what interest the grantor has at the time of transfer. Instead, unlike a warranty deed, which conveys property, a quitclaim deed only conveys whatever interest the grantor has at the time of the transfer. With a warranty deed, a buyer can typically be very confident in what they are purchasing and its condition.Ī quitclaim deed provides no such guarantees. You may also make warranties related to the absence of liens or other encumbrances on the property. Most importantly, a warranty deed provides a guarantee that the seller actually holds title to the property being sold. A warranty deed, in addition to transferring title to property, warrants against certain defects of title. Warranty deeds are the most common means by which to transfer property. There are three main types of deeds used in the sale of real property in Texas. If you have questions or are involved with a transfer of property using a quitclaim deed in Austin, Pflugerville, or Round Rock, contact the real estate attorneys at the office of Sheehan Law, PLLC for a consultation. Why are quitclaim deeds so useless in Texas? This article will briefly examine what a quitclaim deed is, the limited uses of this type of deed, and the reasons they are relatively useless in Texas. They are so limited in use, in fact, that title and insurance companies in Texas will often refuse to work with them. While this is true in certain limited circumstances, the nature of Texas law makes quitclaim deeds nearly useless in many circumstances.
Quitclaim deeds are a form of property transfer that derive their appeal from being a quick, efficient, and cheap way to transfer real property.
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