The main difference between warranty deeds and quitclaim deeds in Texas lies in the level of protection they offer to the Grantee over the property’s title.Texas offers three types of warranty deeds: general warranty deeds, special warranty deeds, and deeds without warranty.
1. General Warranty Deeds
General warranty deeds provide assurance that the deed is free of any issues, including liens and title problems.
2. Special Warranty Deeds
With a special warranty deed, the seller (Grantor) assures that there have been no issues with the title during their period of ownership.
3. Deed Without Warranty
A deed without warranty does not contain any assurances or warranties of the title being free of issues. However, as it contains terms of “implied warranty”, a deed without warranty is still considered to be a valid deed in Texas.
A quitclaim deed in Texas only transfers the Grantor’s interest or right in the property, if any. It does not make an assurance that the title is valid. In Texas, a deed without warranty is often used in place of a quitclaim. Texas is thus an exception to the norm.
In Texas, the difference between a deed without warranty and a quitclaim deed is in the wording used.
A deed without warranty contains words such as “grant”, “convey,” or “sell” – terms known to “imply warranty”. Although the deed without warranty will also include a clause removing warranties, the presence of implied terms in the main text signals the Grantor’s intent to transfer real property. [3]
A quitclaim deed uses terms such as “release”, “forever quitclaim the right,” or “remise”. These terms state that the Grantor is only giving up his right to the property.
In Texas, the courts determine whether a document is a quitclaim deed or a deed without warranty based on the terms used. [4] As such, no single law oversees quitclaims in Texas.
Once the deed is drafted, it must be recorded at the County Clerk’s Office. [5]
In September 2021, Mr. Smith transferred his family property to his son Isaac through a quitclaim deed. Isaac records it at the County Clerk’s Office.
In December 2021, Isaac found that his father sold the land to a friend in December 2005. The friend never registered the deed but has a receipt and a copy of the deed to prove the transfer.
In this scenario, the court will rule in favor of Mr. Smith’s friend. Even though the transfer was not registered, the value exchange will give it legal precedence.
Isaac will lose the property.
A professional drafter is not legally required in Texas. If a drafter does prepare the document, their name and address must be included in the deed.
Texas Quitclaim Deed Requirements
In Texas, quitclaim deeds are required to meet the content standards that apply to all deeds, including all of the following:
“NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER’S LICENSE NUMBER.”
In Texas, quitclaim deeds require the signature of the Grantor. The Grantor must have their signature authenticated by a notary. Alternatively, Texas allows the Grantor’s signature to be authenticated by two witnesses. [13]
If the Grantor is married and the property is registered as a homestead, both spouses must sign the quitclaim deed. Alternatively, a spousal waiver of homestead rights can be signed and attached.
Here’s how to file a quitclaim deed in Texas:
The filing fees for quitclaim deeds in Texas start at $26.00 for the first page, and there’s an additional charge of $4 for each extra page. [14]
In addition to the basic fee above, each county may require separate filing and recording fees.
In Texas, there are no state taxes triggered by the transfer of property. [15] However, local governments are authorized to collect property tax (Ex: Dallas collects 2.18% of the purchase price, Travis County collects 1.98%). If the property is transferred without any payment in return (which is common for quitclaim deeds), then no taxes are due.
There is no particular time period for recording a quitclaim deed in Texas. The length of time also varies greatly depending on the processes, procedures, and population of each county. For example, Bexar County takes 1-2 business days to process a deed.
Moreover, federal taxes such as Gift Tax and Capital Gains Tax may also be applicable.
In Texas, once the quitclaim deed is signed and filed, the county will process the document, creating a public record of the transfer of ownership. If the deed is clear of any previous filings, a public record of the transfer of the property’s ownership will be made official.
A quitclaim deed does not have an expiration date in Texas. The statute of limitations for challenging a deed in Texas is four years; however, this law is applicable to quitclaim deeds filed after September 1, 2021.
The unrecorded instrument is binding on a party to the instrument, on the party’s heirs, and on a subsequent purchaser who does not pay a valuable consideration or who has notice of the instrument.
After the fourth anniversary of the date a quitclaim deed for real property is recorded in the deed records of the county in which the real property is located, the quitclaim deed: (1) does not affect the question of the good faith of a subsequent purchaser or creditor; and (2) is not notice to a subsequent purchaser or creditor of any unrecorded conveyance of, transfer of, or encumbrance on the real property.
A “Deed without warranty” will include the terms of implicit guarantee, specified in Section 5.023 of the Property Code addressing ‘Implied Covenants’ as follows: (a) Unless the conveyance expressly provides otherwise, the use of “grant” or “convey” in a conveyance of an estate of inheritance or fee simple implies only that the grantor and the grantor’s heirs covenant to the grantee and the grantee’s heirs or assigns.
“…Texas courts are increasingly construing instruments as quitclaims based on interpretation of certain phrases despite the document appearing to be a deed conveying title. This judicial characterization can blur the lines between quitclaims and conveyances..”
Place of recording. (a) To be effectively recorded, an instrument relating to real property must be eligible for recording and must be recorded in the county in which a part of the property is located.
“When a title company sees a quitclaim deed has been filed in the chain of title we are infrequently able to rely on that deed and we have to require that a new general warranty deed be signed to replace that deed.”
“A quitclaim deed conveys any title, interest, or claim of the grantor.. Thus, Diversified received only whatever title, interest, or claims Louis Condra had.. Diversified received nothing more than a chance at title. ”
“Where the grantor conveys only his title, the presumption is that he has doubts as to his right to the land, and gives the purchaser notice sufficient to put him on inquiry as to the claim which casts doubt upon the title”
(a) An instrument executed after December 31, 1981, conveying an interest in real property may not be recorded unless: (1) a mailing address of each grantee appears in the instrument or in a separate writing signed by the grantor or grantee and attached to the instrument.
The statute provides a “statement of consideration” that shows the grantee is providing a value in exchange for the transfer.
“An instrument relating to real or personal property may not be recorded unless it is in English or complies with this section.”
An instrument concerning real or personal property may be recorded if it has been acknowledged, sworn to with a proper jurat, or proved according to law.
(b) An instrument conveying real property may not be recorded unless it is signed and acknowledged or sworn to by the grantor in the presence of two or more credible subscribing witnesses…
Fee schedule
The fee for “Real Property Records Filing” under Section 118.011 is for filing and recording, including indexing, in the real property records in the office of the county clerk a document that is authorized or required to be filed in those records.
Texas has no state property tax. The Texas Constitution and statutory law authorizes local governments to collect the tax. The state does not set tax rates, collect taxes or settle disputes between you and your local governments.
