“Foul deeds will rise, / Though all the earth o’erwhelm them, to men’s eyes.”
— Hamlet (Act 1, Scene 2)
Understanding Real Property and Title in Texas
Jane purchased a house with 5 acres. She named it “Little Farm.”
Little Farm is considered real property. Jane’s ownership of Little Farm meant that she held title to that real property.
Transferring Title Through a General Warranty Deed
Jane eventually sold Little Farm to David. Her transfer of the title of Little Farm was accomplished by a document called a general warranty deed.
In real estate lingo, Jane was the grantor of the general warranty deed, and David was the grantee.
But Jane’s general warranty deed did more than just transfer title; it contained warranties.
Types of Deeds Used to Transfer Real Property in Texas
In Texas, there are three primary types of deeds used to transfer real property:
What a General Warranty Deed Protects Against
A general warranty deed provides the greatest protection for a buyer. In it, the grantor binds herself to defend against title defects created by herself and all prior titleholders.
In our example, Jane, by signing a general warranty deed, agreed to protect David’s title in Little Farm beyond claims that had been created by just her actions. She warranted to protect David’s title against all claims and demands, regardless of whether they were created by her or by any previous owner of Little Farm.
Selling Property with a Special Warranty Deed
After receiving title of Little Farm through a general warranty deed, David decided that he was going to sell the house and acreage to Betsey. However, he conveyed title to her through a different kind of document: a special warranty deed.
How a Special Warranty Deed Limits Protection
A special warranty deed offers less protection to the buyer than a general warranty deed does. In a special warranty deed, the grantor warrants to defend title only against the claims and demands of the grantor and “all persons claiming by, through and under him.”
This means that the grantor is liable only for title defects that arose during the grantor’s period of ownership or through his actions.
Comparing the Chain of Title
Let’s recap. The property passed as follows:
Jane → David → Betsey
Jane, through her general warranty deed, warranted title to David against all claims, regardless of when or how they were created. But David, through his special warranty deed, warranted title to Betsey only against claims he had created.
Betsey received fewer warranties than David had received.
Quitclaim Deeds and Why They Are Risky
Let’s sell Little Farm one more time, shall we? This time, you are the buyer.
Betsey decides she is going to sell Little Farm to you. You both agree on a price, but when it comes time to close on the sale, Betsey gives you a quitclaim deed instead of a general or special warranty deed.
That’s not good.
What a Quitclaim Deed Actually Conveys
A quitclaim deed provides the least protection to the grantee. A quitclaim deed conveys only the grantor’s rights, if any, to the property.
Quitclaim deeds, according to the Texas Supreme Court, “are commonly used to convey interests of an unknown extent or claims having a dubious basis.”
Clearing up any confusion, the Texas Supreme Court also opined:
“A quitclaim deed expresses upon its face doubts about the grantor’s interest, and any buyer is necessarily put on inquiry as to those doubts.”
A quitclaim deed gives no warranty of title.
Best Practices When Buying Property in Texas
When you agreed to purchase Little Farm, you should have stipulated in the contract that you wanted a general warranty deed. You should also have purchased title insurance and closed through a title company.
Had you done that, then you would have received Little Farm with a full warranty of title.
Final Thought on Deeds and Title Protection
Or, as Shakespeare put it:
“So shines a good deed in a naughty world.”
Conclusion: Protecting Family and Legacy
The type of deed used in a real estate transaction directly affects the protection a buyer receives. Understanding the differences between general warranty deeds, special warranty deeds, and quitclaim deeds helps prevent unexpected title issues and costly disputes.
At Hammerle Morris Law Firm, we help clients protect their property interests by ensuring the title is properly conveyed and insured. Contact us to safeguard your investment with confidence.
Virginia Hammerle is an accredited estate planner and represents clients in estate planning, probate, guardianship, and contested litigation. She may be reached at legaltalktexas@hammerle.com. This blog contains general information only and does not constitute legal advice.
