Quitclaim versus Warranty Deeds
A quitclaim deed is among the more misunderstood instruments in Texas real estate law. A quitclaim has very limited use; more often, a warranty deed fulfills the needs of transfer. A Bryan-College Station, Texas real estate attorney can help a person decide whether a quitclaim is useful for his purposes.
What Quitclaims Do
Quitclaims are generally very brief instruments—often just a single page. The purpose of a quitclaim is not, as some imagine, to transfer ownership in real property, but to pass interest; this only applies, however, if the individual being offered the claim accepts it, and if there is any real interest to transfer.
A quitclaim does not clear title. In fact, if such a claim is used to transfer title, the new homeowner will find, surely to his dismay, that he may have trouble obtaining title insurance for the property. This is because a quitclaim is not an assurance that the seller possessed clear title to transfer in the first place.
Quitclaims do have their place, however. They can be used in a limited way to provide a means of signing over interest in property in a simple and streamlined fashion, as in a divorce settlement when one spouse relinquishes his interest to the other. Because of the difficulties often associated with quitclaims, however, one should consult with a Bryan-College Station, Texas real estate attorney before committing to one.
A warranty deed is in most cases a much better option for transfer of real property. This is because the nature of this form of transfer is such that it provides the purchaser the assurance that a full title search has been conducted to assure that the property is clear of liens; it also provides a warrant of protection against defects of title in perpetuity.
For More Information
If you need assistance with a title transfer, quitclaim deed or other related matter, call a Bryan-College Station, Texas real estate attorney today. The Peterson Law Group is here to serve you at 979-703-7014. Or, you can use our online contact form to schedule a consultation.