Five Points: Warranty Deed or Quitclaim Deed? It's Not Even Close

When conveying property title in Texas, the content and structure of a properly written, signed and notarized agreement is of utmost importance. But what form of agreement is needed? When choosing between a Warranty Deed or a Quitclaim Deed, consider the following:

• Warranty Deeds are the preferred instrument to convey title to real estate
• General warranty deeds contain expansive warranties of title
• Special warranty deeds are limited in nature, providing lesser protection from claims
• Special warranty deeds should be accepted only if backed by adequate title insurance protection
• Quitclaim Deeds are not acceptable conveyances in most instances; they merely “release” claim of title

If the goal is to simply transfer property title, either in whole or in part, from one or more parties to another, without the necessity of contracts, closing statements, mortgage payoffs, title insurance, etc., then that goal may be accomplished with a warranty deed.

Examples may be a transfer between former spouses during/after divorce, a gift of property from one to another, or a transaction where the parties are familiar with each other and just need the legal documentation to evidence the transfer.

Warranty deeds typically come in two different flavors: general warranty deeds and special warranty deeds. We can explain when to use one over the other.

And now to the quite popular but oh-so-troublesome Quitclaim Deed (often mistakenly referred to as a “quick-claim” deed”). In Texas, quitclaim deeds should be avoided in all situations. Why? Because contrary to long-held beliefs that they serve to transfer title, in actuality, they fall short of that goal. Rather than “conveying” title from one owner to another, they merely “release any claim” to a property in favor of another.

If you need to transfer real estate ownership from one party to another, and you want to make sure you’re crossing the t’s and dotting the i’s, contact Jeff Rattikin at rattikin@rattikinlaw.com and he’ll get you taken care of.