Your Deed OptionsĪll of this doesn’t mean that using a quitclaim deed in Texas is completely useless. As such, quitclaim deeds in Texas should be seen as red flags to potential buyers. This has led to the majority of Texas insurance companies refusing to insure titles for homes with quitclaim deeds in the chain of title. The route of the problem is a single section of the Texas property code, which essentially states that unrecorded title transfers in the past are binding to subsequent purchasers. While quitclaim deeds are legal in all 50 states and used commonly in most of them, Texas is an outlier. Removing an ex-spouse from a property title.Siblings dividing up inherited property between each other. Parents transferring property to their children.Scenarios where a quitclaim deed may be used include: Quitclaim deeds are often used in property transfers between family members because the absence of a warranty requires a certain level of trust. However, understanding when quitclaim deeds are typically used may offer you a better understanding. Deeds are part of a complicated legal framework best navigated by real estate lawyers. If you’re still a bit confused by what a quitclaim deed is and what its use is, you’re not alone. However, the buyer’s title will not be warrantied. This means that if the property owner wishes to sell their property, a quitclaim deed will provide a simple transfer of property. Instead, they only convey the seller’s interest in the property. Quitclaim deeds offer no such protection. In other words, they protect the legality of the deed. Warranty deeds, which are used in the transfer of real property, protect the buyer’s new title from superior title claims. What is a quitclaim deed?īefore understanding a quitclaim deed, you need to understand another main kind of deed, the warranty deed. While there are multiple ways to legally transfer property such as a house, there’s one type of deed that those looking to transfer property in Texas don’t really use: quitclaim deeds. The most important part of buying or selling property is the deed, which is the legal document that transfers the property title from the seller to the buyer.
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