Quitclaim deeds in Texas help one party quickly and easily transfer real estate property to another. Often, the parties know and trust each other well because these deeds don’t offer legal promises about the title’s quality. Also, grantors and grantees usually exchange little to no money during a quitclaim deed transfer.
Family members or friends can employ quitclaim deeds to remove a previous spouse’s claim to home ownership after a divorce, give property to their children, transfer property ownership into a living trust, or cure a title defect.
Legal Framework
Chapters 11 through 13 of the Texas Property Code lay the groundwork for quitclaim deeds. The statutes define the critical elements of quitclaim deed creation, including what information to include (Tex. Prop. Code, Ch. 11), how to file (Tex. Prop. Code, Ch. 12), and what happens after filing (Tex. Prop. Code, Ch. 13).
Common Texas quitclaim deed requirements include the following:
Legal Description
- State law does not specify any particular language for describing property in a quitclaim deed. Generally, the legal description should uniquely identify a particular piece of property. Check the prior deed for a description you can use.
Signing
- According to Tex. Prop. Code § 12.001, signers should include:
- The property owner (the grantor).
- Two witnesses or a notary.
- The receiver of the property (the grantee) doesn’t need to sign.
Language/Terminology
- New quitclaim deeds must use English. If the deed is acknowledged outside the US and its territories, it must include a correct English translation sworn as accurate before an authorized officer (Tex. Prop. Code § 11.002).
- Most of these deeds use the word “quitclaim” or an equivalent phrase like “remise, release, and quitclaim” to legally transfer the property to the grantee (Tex. Prop. Code § 12.019).
Additional Documents
- A certified translation of your quitclaim deed should accompany your primary document if it’s in another language.
- A judgment that awards interest in the property should go with your deed to prove your ownership and ability to transfer it (Tex. Prop. Code § 11.0052).
Note: A quitclaim deed doesn’t affect your mortgage. To transfer a mortgage to the new property owners, you must update your mortgage deed separately.
Filing
- After receiving the proper signatures, file at your Texas county clerk’s office.
Community Property
Marital property falls into two categories under Texas community property law:
-
Separate Property:
- Owned before marriage
- Acquired by gift or inheritance during marriage
- Personal injury recovery during marriage
-
Community Property:
- Acquired by either spouse during marriage, excluding separate property.
It’s important for legal and tax purposes to clearly state in the deed whether the property is separate or community when transferring it. This ensures clarity and helps avoid potential complications.
Validity Requirements
According to state law, you must consider the following requirements when creating a quitclaim deed to prove its legal validity:
- Location: The deed must be recorded and filed in the county that contains the property (Tex. Prop. Code § 11.001).
- Required Signatures: The grantor must sign the deed before two witnesses or an authorized notary who also signs the document (Tex. Prop. Code § 12.001).
- Type of Signatures: Signatures on a quitclaim deed must either be original or acknowledged, sworn to in front of a notary, or proved according to state law (Tex. Prop. Code §12.0011).
- Electronic Signatures: For state law to consider electronic signatures valid, a notary must attach an official seal and declaration of authenticity to the printed copy of the deed that includes the electronic signatures (Tex. Prop. Code §12.0013 (d)).
- Other Potential Interests: Parties should only use quitclaim deeds when they’ve already established trust, as these documents can be risky otherwise. In Texas law, an unrecorded interest is considered binding on a purchaser who does not pay valuable consideration for the property (Tex. Prop. Code §13.001(b)).
Content Requirements
In the content portion of a quitclaim deed for Texas, include the following:
- Effective Date: Note when the deed should go into effect and transfer the title to the new owners.
- Grantor and Grantee Names: Include the full legal names of the person giving the property (the grantor) and the person accepting the property (the grantee).
- Grantor and Grantee Type: Identify whether each party is a single individual, married individual or couple, or an entity like a corporation or limited liability company (LLC).
- Grantor Mailing Address: Include an address for the grantor on your quitclaim deed. While Texas law doesn’t require this information, it’s standard practice to include it.
- Grantee Addresses: The document should include a mailing address for each grantee. Otherwise, you may receive a penalty fee (Tex. Prop. Code § 11.003). While you’ll incur a penalty for not including these addresses, their absence doesn’t invalidate the deed.
- Money Exchanged: If the parties will exchange money during the transfer, note it on the deed. If not, write down a nominal or symbolic amount like $10.
- Property Details: Give the county and state that the property exists in and describe the property by unique details, which you can usually find on the previous deed.
- Property Type: Identify whether the property will be used as a sole ownership, joint tenancy, tenancy in common, or tenancy in the entirety.
- Exceptions: Write down any exceptions, such as if the grantor has permission to live on or use a specific part of the property for a certain period or until death.
- Homestead Status: Note whether the property is the grantor’s homestead.
Title Insurance and Quitclaim Deeds
Title insurance companies in Texas are suspicious of insuring properties that have quitclaim deeds in their history because these documents don’t provide any assurance or legal defense for the new deed holder’s rights. They also worry that property title issues could arise due to undocumented past transactions.
Insurance companies may accept a deed without warranty instead. This document includes the “grant, sell, and convey” terminology that conveys the actual property and not just the interest of the transferor. This way, the new owner won’t have to deal with the consequences of undisclosed liens, as a deed without warranty requires their divulgence.
Some title companies might insure quitclaim deeds in special circumstances. For example, they may do so in instances of bank foreclosures if the bank can’t provide a deed without warranty or a special warranty deed. However, please note this is not the norm.
Quitclaim Deeds vs. Other Property Transfer Methods
| Quitclaim Deed | Is useful when the grantor wants to transfer property to a grantee they know well. It transfers the title of the home but no other aspects, such as a mortgage. |
| General Warranty Deed | Provides the greatest level of protection to the grantee. It warrants the title against all defects, even those inflicted before the current owner. |
| Special Warranty Deed | Offers moderate protection, as it only guarantees against title defects that occurred during the seller's ownership period. |
| Deed without Warranty | Is similar to a quitclaim deed in that the seller makes no claims about the title's quality. Insurance companies may be more likely to accept this type. |
| Lady Bird Deed | Lets the property owner keep control over their property until they die. At this point, the property automatically transfers to a designated beneficiary without the need for probate. |
