First, Some Free, But Very Relevant, Advice
If you are in a hurry, you can find the Texas Quit Claim Deed Form for Free at the bottom of the page. However, we strongly suggest that you read the rest of this article before proceeding. A little knowledge is a dangerous thing while a lot of knowledge can lead to some powerful results.
Here's Another Great Place to Start...
But it's Not Free
Quit Claim Deeds in Texas
There are innumerable questions asked by lawyers, real estate professionals and investors as to the validity of quit claim deeds in Texas. While the answers are fairly straight forward, they are sometimes misinterpreted. In fact, many out-of-state, legal professionals have erroneously pronounced quit claim deeds in Texasas worthless. Nothing could be further from the truth.
As is usually best, let us start with the most important points first. Since there seems to some confusion as to what a quit claim actually does, here’s the interpretation that the Texas courts hold about quit claim deeds in their state:
"A quitclaim deed conveys any title, interest, or claim of the grantor in the real property, but it does not profess that the title is valid nor does it contain any warranty or covenants of title. Thus, a quitclaim deed does not establish title in the person holding the deed, but merely passes whatever interest the grantor has in the property." Diversified, Inc. v. Hall, 23 S.W.3d 403 (Tex. App.--Houston [1st Dist.] 2000, pet. denied).
This language clearly gives meaning and standing to a quit claim document and anyone who ignores one when consummating a real estate transaction does do at their own peril.
The Main Ramifications
As you can plainly see, a quit claim deed does, indeed, convey ownership of the grantee’s rights in a property but it does not guarantee absolute title. The problem with this situation thus becomes one of insurability and anyone with any experience in real estate understands that that is a significant problem.
Simply put and without going into all the details, a person with a quit claim deed can exercise all the rights and privileges of titled owner. They are, however, subject to any prior conveyances on the property, EVEN IF THOSE CONVEYANCES ARE UNRECORDED. It’s a sticky wicket as the British would say.
What to Do
Quit claim deeds in Texas indisputably have a place in any real estate entrepreneur’s repertoire. Still, it is extremely important that quit claim deeds in Texas get filed in a timely manner and are followed up with a proper (and insured) title search before any current deal is financially consummated. It is a prudent investor who does not proceed with any further transactions without resolving these issues first.
And don't forget, Caveat Emptor.