To Deed or not to Deed?

We all know that you need some sort of document or a deed to transfer property. But the question becomes what type of deed will help you accomplish your goals. This article briefly describes the different types of deeds available in Texas and their various levels of protection.  As a reminder, for more details regarding  deeds, please reach out to your legal professional for questions and advice as our articles are for informational purposes only. 

​In Texas, we transfer ownership through deeds. There is a Quit Claim Deed, a Deed of Trust, a Warranty Deed, and a Special Warranty Deed. All are used to transfer ownership of real property (also known as real estate).  However, they differ in the level of protection and warranties they provide to the buyer (grantee) and the obligations of the seller (grantor).

QUITCLAIM DEED
Our first deed to discuss is the quit claim deed.  A Quitclaim Deed is a legal document used to transfer ownership of real property from one person (grantor) to another (grantee). Unlike other types of deeds, a Quitclaim Deed provides no warranties or guarantees about the ownership of the property. The grantor is simply releasing, or "quitting," any claim they have to the property, but does not provide any assurances about the status of the title.
The Quitclaim Deed can be useful in certain situations, such as transferring property between family members, correcting errors in the chain of title, or resolving disputes about ownership. However, it is important to understand that the grantee may still face title issues or disputes that were not resolved by the Quitclaim Deed. 

DEED OF TRUST
A Deed of Trust is a three-party agreement between the borrower (trustor), the lender (beneficiary), and the trustee. The borrower conveys the title to the property to the trustee, who holds the property as security for the loan. If the borrower defaults on the loan, the trustee can sell the property to satisfy the debt. So in essence, in some ways, the Deed of Trust resembles a mortgage. 
 
WARRANTY DEED 
A Warranty Deed provides the grantee with a guarantee from the grantor that the grantor has good title to the property, free and clear of any liens or encumbrances, and that the grantor will defend the title against any claims. This is sort of like a guarantee that if anything goes wrong with the title, and title is not good, you may have a claim against the grantor. 

SPECIAL WARRANTY DEED
 A Special Warranty Deed provides a limited warranty from the grantor to the grantee. The grantor only promises that the property was not encumbered during the grantor's ownership and that the grantor has done nothing to impair the title. The grantor does not provide a warranty against defects that existed prior to their ownership. 
 
In conclusion, it is recommended that before determining which deed to use or pulling forms off of the internet that you consult an attorney to determine if your legal matters will be resolved with one deed or another. As always, please feel free to email us with your questions.