The following is a brief explanation of deeds in Texas. To determine which will work best for your desired application, contact The Law Office of Latra Szal, PC.
What is a Deed?
A deed is a written document that establishes legal and equitable title to real property. Although the deed is only one of the documents used in a majority of real property transactions, it is arguably the most important document to the buyer (called the “Grantee”) because it is what documents that the property has been sold. The deed also includes the warranties of title and obligations owed to the Grantee by the seller (called the “Grantor”).
Different Types of Texas Real Estate Deeds
While there are many types of deeds that can be prepared, in Texas we generally use three different types:
General Warranty Deed
This form of deed is the preferred form from a buyer’s standpoint because it expressly warrants the entire chain of title, and it obligates the Seller to defend against any defects of title, even if those defects were created prior to the date the seller took ownership. This is the most common type of deed used in residential real estate transactions, and it is most commonly accepted by title insurance companies. When parties use the Texas Real Estate Commission contracts, which are quite common in Texas, the contract calls for this deed type.
Special Warranty Deed
In this deed type the Seller only agrees to defend the status of the title from the time they took ownership of the property. Meaning the Seller only warrants against defects of title that occurred during their period of ownership. Special Warranty Deeds are commonly used in commercial transactions. In a real estate transaction on residential property it is not advisable to use this type of deed without seeking approval from the title company closing the transaction.
Deed Without Warranties and/or Quitclaim Deeds
This type of deed is simply a conveyance of property without any warranties to the buyer. A seller using this deed type is not obligated to defend against any defects of title regardless of when they arose.
Additional Deed Types:
- Escrow Agreements
- Heirship Affidavits
- Easement Agreements
- License/Boundary Line Agreements
- Powers of Attorney
- Transfers of Lien