A Texas quitclaim deed is a legal instrument that facilitates the conveyance of a person’s interest in real property to another party without affirming the existence of a clear and unencumbered title.
This type of deed lacks warranties, meaning the grantor doesn’t guarantee they hold a valid title to the property or that it’s free from encumbrances like liens. Grantors often use this document in transactions among family members. They may also use it to swiftly resolve title disputes, leaving the grantee to assume any associated risks with the property’s title.
Laws & Requirements
Statute: Texas doesn’t have a specific statute pointing to language requirements. The granting clause in a quitclaim deed form typically uses the word “quitclaim” or an equivalent phrase like “remise, release, and quitclaim.”
Signing Requirements: Tex. Prop. Code § 12.001 states that the property owner (grantor) should sign before two witnesses or a notary public. The grantee’s signature isn’t required. The notary’s acknowledgment confirms voluntary action. Two witnesses or a notary must be present during the grantor’s signing.
Recording Requirements: Tex. Prop. Code § 11.001 states that you must record the completed and notarized quitclaim deed form. Submit the deed to the county court clerk’s office where the property is located.
Transfer Tax: No.
Additional Information: Per Tex. Prop. Code § 13.001(b), an unrecorded instrument is binding on a subsequent purchaser who does not pay valuable consideration for the property. Title insurance companies are cautious due to potential unrecorded interests.
How to File
- Access the Deed: Contact the original owner to acquire the deed.
- Familiarize Yourself with the Legal Description: Learn the property’s legal description so you don’t confuse it with another property.
- Gather all Necessary Information: Ensure you have all necessary information, such as the grantees’ full names and addresses and whether they’ll provide any compensation for the property.
- Consider Legal Advice: Consider seeking legal advice to clarify legal jargon.
- Complete the Quitclaim Form: Complete the form with all relevant information.
- Sign: Sign the document before two witnesses or a notary public.
- File: File the form with the appropriate Texas county clerk’s office.
- Issue a Copy: Provide the grantee with a copy of the quitclaim deed.
Costs and Fees
Filing Fees:
- Filing fees begin at $25 for the first page and $4 for each subsequent page (Tex. Loc. Gov’t Code § 118.011).
Taxes:
- Documentary Transfer Tax (DTT): Texas doesn’t impose a transfer tax.
- US Gift Tax (Form 709): Individuals are responsible for paying federal tax on some transfers that don’t involve a monetary exchange.
- Capital Gains Tax: Texas doesn’t have capital gains tax, but the federal government does. IRS Topic No. 409 confirms that the grantee must pay capital gains tax if they sell the property in the future for more than the adjusted basis amount.
Frequently Asked Questions
What Is the Statute of Limitations for a Quitclaim Deed in Texas?
Tex. Prop. Code § 13.006 establishes a four-year statute of limitations for quitclaim deeds.
Can I Reverse a Quitclaim Deed in Texas?
Reversing a quitclaim deed is possible, but it can be complicated. You can generally only reverse it if one of the following circumstances is true:
- Both parties agree and execute a new deed to transfer the property to the original owner.
- Legal challenges, such as incapacity, duress, fraud, or a significant mistake, cause the court to nullify the deed.
- A court issues an order to reverse a quitclaim deed as part of its judgment or settlement for a bankruptcy or divorce proceeding.
What’s the Difference between a Quitclaim Deed and a Warranty Deed in Texas?
A warranty deed ensures the buyer that the seller has a valid title to the property, while a quitclaim deed doesn’t make this pledge.
Will Texas Insurance Companies Accept Quitclaim Deeds?
Most Texas insurance companies hesitate to accept quitclaim deeds because of Tex. Prop. Code § 13.001(b). This law states that if the property’s ownership went to another individual in the past but wasn’t officially recorded, the undocumented transfer could still be legally important. As a result, most insurance companies won’t insure a property if its ownership history has a quitclaim deed.
