This subsection does not apply if: (1) more than one person acquired the real property from a decedent under a will or by inheritance and those persons owning an undivided interest in the property obtained approval to subdivide the property to provide each person with a divided interest and a separate title to the property; or. Liens must be addressed when selling property. CONVEYANCES SUBCHAPTER A. Additionally, many mortgage companies tell people this. This means that the buyer of the property (the grantee) has legal recourse to the seller (the grantor) against any future claim to the property. MOTION TO EXPUNGE LIS PENDENS. If a plat or replat does not indicate whether land covered by the plat or replat is in the extraterritorial jurisdiction of the municipality, the county clerk may require the person filing the plat or replat for recording to file with the clerk an affidavit stating that information. 583, Sec. Eddison received his Juris Doctor from the Charlotte School of Law and is a member of the State Bar of Texas. Again, we recommend a General Warranty deed to remove a current spouse from the house deed. Sec. If they fail to make payments, the spouse who is not using the home can foreclose. 12.009. This is a technicality, but worth mentioning to avoid confusion. Therefore, the special warranty deed does not offer any protections for claims arising prior to the grantors ownership. This helps prevent someone else from claiming they own it. (C) if a mortgage is serviced by a mortgage servicer, the mortgage servicer. 1.06. 2022 Law Office of Nathaniel Gilbert, LLC, such as transfers of property to privately held LLCs, How To Help Your Parents Sell Their House: Powers of Attorney in Real Estate Transactions in Texas. Sept. 1, 1987. The trustee can be anyone willing to take on the responsibilities of the role, but traditionally, lenders choose companies that specialize in trustee services, like a title company. Added by Acts 2019, 86th Leg., R.S., Ch. to explain and simplify the process. Why Do Real Estate Investors Use a Series LLC. It is important to record your deed. AV Preeminent rated by Martindale-Hubble. Aspecial warranty deed only guarantees that no new problems or encumbrances arose while the grantor owned the property. (c) If the cancellation of a lis pendens is conditioned on the giving of an undertaking, the court may order the cancellation when the party seeking the cancellation gives a guarantee of payment of a judgment, plus interest and costs, in favor of the party who recorded the lis pendens. A partition deed breaks up jointly owned property and assigns a portion, or "partition," to each co-owner. A, special warranty deed only guarantees that no new problems or encumbrances arose, make any promises about the condition of the title before they, A deed without warranties only transfers title to the property, with no protections for the grantee. (3) "Mortgage servicer" means the last person to whom a mortgagor has been instructed by a mortgagee to send payments for the loan secured by a mortgage. For example, this type of deed may be used if a divorcing couple needs to divide real estate when both of their names are on the mortgage. A grant from this state or the United States that is executed and authenticated under the law in effect at the time the grant is made may be recorded without further acknowledgement or proof. If the property is in more than one county, record it in each. (b) A county clerk shall record a paper or tangible copy of an electronic record that is otherwise eligible under state law to be recorded in the real property records if the paper or tangible copy of the electronic record: (1) contains an image of an electronic signature or signatures that are acknowledged, sworn to with a jurat, or proved according to law; and. 2, eff. He has successfully represented clients in a wide range of legal matters, including will and trust creation, probate, real estate transactions, business formation, business and contract disputes, and business succession planning. All deeds must meet the basic legal requirements for a deed unless a statute makes an exception. Sec. Acts 1983, 68th Leg., p. 3495, ch. (2) "Transfer" means a transaction to sell, exchange, convey with or without covenants, quitclaim, release, surrender, mortgage, encumber, partition or consent to partitioning, subdivide, apply for zoning, rezoning, or other governmental permits, plat or consent to platting, develop, grant options concerning, lease or sublet, or otherwise dispose of an estate or interest in real property or a right incident to real property. While a general warranty deed protects the buyer against all possible title defects, a special warranty deed offers a bit less protection for the grantee. Texas Property Deeds is a service of The Steinbach Law Firm. Jane may sue Gary for damages, but she cannot take the property from Bob. The Estates Code is a fallback that comes into effect by default, in the absence of a will. Mr. Rattikin has provided transactional legal services to clients across the State of Texas for over 28 years, emphasizing real estate, business and title law. (1) a domestic nonprofit entity or a foreign entity that is: (A) exempt from federal taxation under Section 501(a), Internal Revenue Code of 1986, by being listed as an exempt entity under Section 501(c)(3) of that code; or, (B) described by Section 170(c)(1) or (2), Internal Revenue Code of 1986; or. Further, this language guarantees that, at the time of the legal transfer of the property, the property is free from anything that would stop the transfer. (2) has been declared by a notary public or other officer who may take an acknowledgment or proof under Section 121.001, Civil Practice and Remedies Code, to be a true and correct copy of the electronic record as provided by Subsection (d). They are not for sale. 2128), Sec. For example, if you put up land a security on a loan, the lender will have a lien on your home until you pay back the loan. 3, eff. (c) The county clerk shall record the notice in a lis pendens record. There are all sorts of legal documents that need to be filed and hoops that need to be jumped through in order for the real estate transaction to be valid and legally binding. To be legal, a deed must be in writing, signed, delivered, and accepted. (d) An affidavit executed under Subsection (c) must be in substantially the following form: Before me, the undersigned authority, on this day personally appeared (insert name of affiant) ("Affiant") who, being first duly sworn, upon his/her oath states: 1. For generations, well-meaning advisors have unknowlingly led their questioners astray by repeating a well-circulated but extremely inaccurate mantra: In order to transfer title to real estate, the seller should give the buyer a quitclaim deed, often mispronounced a quickclaim or quick claim deed. Acts 1983, 68th Leg., p. 3494, ch. It allows the grantor to give up all ownership, with no responsibility toward the property or the grantee in the future. You may also find what's in parentheses is from the Grantee column of the Grantor search or in the Grantor column of a Grantee search. assessed value. Feeling overwhelmed after reading about all the different types of Texas property deeds? Not for sale. However, buyers using these types of deeds in Texas should purchase title insurance through one of the many title companies in the state. 12.015. Good to know: If you do not have a signed and notarized Survivorship Agreement, it can cause great hardship for your spouse if you have children from another marriage or relationship. September 1, 2007. . Acts 2009, 81st Leg., R.S., Ch. The parties still need to create a deed. (3) a definite identification of each provision being incorporated. Code Ann. Texas passed a law in 2021 to help fix this problem. or liens against the propertythe grantor would be responsible for rectifying them. 1, eff. 603, Sec. For example, a utility company may have an easement to place electric lines. This final step of filing puts the public on notice of the transfer. 1154 (H.B. 2, eff. This helps ensure that there will not be any unexpected claims on the property. Acts 2005, 79th Leg., Ch. 921 (H.B. 1003, Sec. A person who negligently causes an affidavit with false information to be executed and recorded under this section is liable to a party injured by the affidavit for actual damages. Commonly, children will have powers of attorney for their parents when they get older and may need assistance with financial transactions. (a) If written evidence of title to land has been filed according to law in the General Land Office or is in the public archives, a copy of the written evidence may be recorded if: (1) the original was properly executed under the law in effect at the time of execution; and. If the property owner dies and did not use one of these simple estate planning deeds or have another estate plan in place, you may be still be able to use an Affidavit of Heirship and a General Warranty Deed in order to transfer the heir property. The seller doesnt make any promises about the condition of the title before they owned the property. Constructive notice is when the buyer. That makes it harder to protect against those claims, should they arise. This article explains how to get a homestead exemption on a property you inherited in Texas. Acts 2007, 80th Leg., R.S., Ch. If they fail to make payments, the spouse who is not using the home can foreclose. 213 (H.B. Transfer on Death deeds became legal in the Lonestar State in 2015, and there are some drawbacks to this type of deed in Texas law. (a) An instrument concerning real or personal property may be recorded if it has been acknowledged, sworn to with a proper jurat, or proved according to law. Transferring real estate can be complicated, with lots of room for error. 12.0011. (e) Subject to Subsection (f), an affidavit described by Subsection (c) must: (1) be executed under penalty of perjury by an individual who swears that the individual: (B) is authorized to execute and deliver the affidavit on behalf of the entity; (C) is fully competent to execute the affidavit; and, (i) third parties will rely on the truthfulness of the statements made in the affidavit; and, (ii) the affidavit is made under penalty of perjury; and. (Insert name of Mortgagee) ("Mortgagee") provided a payoff statement with respect to the loan secured by the mortgage. The types of deeds commonly used in Texas are listed below: General Warranty Deed Special Warranty Deed Deed Without Warranties Lady Bird Deed Quitclaim Deed Assumption Deed Wraparound Deed Trustee's Deed Deed Incident to Divorce Deed in Lieu of Foreclosure Correction Deed 33, eff. Quitclaim deeds are popular because of their ease of use, but in the final analysis, a warranty deed might be a better solution, even between family members and good friends. TRANSFER BY RECEIVER OR CONSERVATOR OF FAILED DEPOSITORY INSTITUTION. There are a number of other types of property deeds that are used primarily for estate planning purposes. 1, eff. 576, Sec. (d) Except in the case of a subdivision located in a county to which Subchapter B, Chapter 232, Local Government Code, applies, Subsection (c) does not apply to using a subdivision's description in a contract to convey real property before the plat or replat of the subdivision is approved and is filed for record with the county clerk if: (1) the conveyance is expressly contingent on approval and recording of the final plat; and. Acts 1987, 70th Leg., ch. June 15, 1991; Acts 1997, 75th Leg., ch. CANCELLATION OF LIS PENDENS. 576, Sec. Unfortunately for Jane, Bob did not know about Janes purchase and Janes deed is not in the public record. 12.008. The transfer is not automatic. This situation, in turn, can affect the protection that would otherwise be covered by a title insurance owners policy and may leave the grantee without full protection against future title claims. Based on our years of experience, we know that every transaction is unique, and our unwavering goal is to understand your needs and goals and help you achieve them. Pending publication of the current statutes, see S.B. 3167), Sec. 149, Sec. This affidavit is made on behalf of the mortgagor or a transferee of the mortgagor who acquired title to the property described in the following mortgage: (describe mortgage, the name of the mortgagor, and the property described in the mortgage). FEE SIMPLE. Like a transfer on death deed, it can help avoid probate. Do not use a Quitclaim Deed. (g) This section does not apply to a partition by a court. (a) In this section: (1) "Document" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form. In other words, consideration is the purchase price. (b) A certified transcript under this section may be recorded in the same manner as a deed. Sec. A person desiring to take title to property is well advised to avoid the oft-recommended quick-claim deed, and demand instead an actual warranty deed from the grantor. The grantor of the deed must have the legal right to transfer the property. 1, eff. The grantor is the current ownerwho is transferring the property to someone else. 570, Sec. It can also help the borrower protect their credit. 1004, Sec. 576, Sec. In contrast, a real estate. On innumerable occasions, consumers have contacted my office asking for such a document, claiming that the county clerks office at the courthouse advised them to utilize this document. Renumbered from Property Code Sec. 297 (H.B. Secure online payment with a credit card. In this paper, they will be called "Restrictions." Dividing Your Property and Debt in a Divorce, Dividing Community Property After Your Divorce, Digital strategy, design, and development by, The parties to a deed: Grantors and Grantees. For example, this type of deed may be used if a divorcing couple needs to divide real estate when both of their names are on the mortgage. Many people think you need a Quitclaim Deed to remove your ex-spouse from a Deed. GENERAL PROVISIONS Sec. This includes: A chain of well-written deeds will allow you to track the property all the way back to the original owner. For real estate purposes, refers to the ownership of the property. In some cases, a deed without warranties may be better than a quitclaim deed because a quitclaim deed, as a matter of law, gives notice to the grantee that there might be other claims on the property. 1, eff. 12.005. If only one owner signs, the grantee becomes co-owner with anyone else who still has rights to the property. (b) A person may not file for record or have recorded in the county clerk's office a plat or replat of a subdivision of real property unless it is approved as provided by law by the appropriate authority and unless the plat or replat has attached to it the documents required by Section 212.0105 or 232.023, Local Government Code, if applicable. There are at least 11 types of deeds in Texas used in the transfer of real estate. Emailed to you in about an hour. Failure to file the deed can subject the property to future claims by third parties. A deed does not require the grantee's signature, There are several types of deeds that offer, offers the most protection for the grantee, grantor guarantees that there are no encumbrances, such as liens or other rightful claims to the property. real property. 12.014. It is not necessarily the actual title of the deed document. The transfer is not automatic. (k) This section does not affect any agreement or obligation of a mortgagee to execute and deliver a release of mortgage. It does not include consideration, and so one can argue that it does not protect the grantee as a good faith purchaser--though that should not matter if title is clear. For those two years, the new property owner wont be able to purchase title insurance through a title company, which affects their ability to sell the property. (e) The court shall rule on the motion for expunction based on the affidavits and counteraffidavits on file and on any other proof the court allows. 162, Sec. Sept. 1, 1989. These codes describe scientific and safety standards for structures and discuss specifications for construction practices, electrical systems, plumbing fixtures, fire . Est. Often it may not even be clear if the grantor has any rights to give, but it prevents the grantor from making any claims on the property in the future. We are ready to help you get through what youre experiencing. In order to validly convey title to real estate in Texas, a grantor must execute a deed to the property in front of a notary public. Thats because, in this type of deed, the grantor is warranting (or guaranteeing) that they have a legal and equitable title and that there are no other claims to the property out there. Spouses may live apart or may be talking about divorce. The deed lets one spouse use the home and makes that spouse responsible for mortgage payments. If the tax certificate for a taxing unit does not cover the preceding year, the plat, replat, or amended plat or replat must also have attached to it a tax receipt issued by the collector for the taxing unit indicating that the taxes imposed by the taxing unit for the preceding year have been paid. While a valid deed does not require the grantee address, you do have to include a mailing address for each grantee when you record the deed with the County Clerk. In many cases, the circumstance of why you are transferring ownership of a house will determine which deed you should use. (2) "Electronic," "electronic record," and "electronic signature" have the meanings assigned by Section 322.002, Business & Commerce Code. Property Ownership During and After Divorce-Handle with Care, Recent Changes to TREC Residential Contract Forms: Steps in the Right Direction. (b) A transfer under this section may be filed with the papers of the suit if the transfer is acknowledged or sworn to in the form and manner required by law for acknowledgement or swearing of deeds. A quitclaim deed is simple to use but gives the grantee the least amount of protection. In other words, the. (3) the person who filed the notice for record did not serve a copy of the notice on each party entitled to a copy under Section 12.007(d). Acts 1983, 68th Leg., p. 3494, ch. Acts 1983, 68th Leg., p. 3490, ch. Jan. 1, 1984. Use a General Warranty Deed. He can be reached at 726-999-0087. Need to transfer ownership of physical property in the Houston, TX area? Speak with a lawyer for a free consultation. In addition to the property deeds mentioned above, there is the transfer on death deed (TODD), legal in Texas since 2015. For purposes of this subsection, "Title IV-D agency" has the meaning assigned by Section 101.033, Family Code. (D) the name and title of one or more individuals authorized to transfer on the entity's behalf an estate or interest in the real property described in the affidavit. In actuality, a deed is simply a physical legal document that transfers the title of a property which is the concept of ownership and rights to the property from the current owner (or the grantor) to the new one. June 19, 1999. POWER OF ATTORNEY. Added by Acts 2007, 80th Leg., R.S., Ch. The trustee (someone other than the buyer and the lender) gets the deed and technically owns the property while the loan exists. The parties still need to create a deed. (c) Except as provided by Subsection (d), a person who subdivides real property may not use the subdivision's description in a deed of conveyance, a contract for a deed, or a contract of sale or other executory contract to convey that is delivered to a purchaser unless the plat or replat of the subdivision is approved and is filed for record . September 1, 2009. The description should clearly lay out the propertys boundaries. Generally, there are three types of deeds in common use in Texas - a general warranty deed, a special warranty deed, and a deed without warranty. 12.012. With this type of Texas deed (also known as a limited warranty deedthe grantor only guarantees that no title issues exist for the time period that they owned the property. Jan. 1, 1984. Lot 25, Block 10, of Oak Creek Subdivision #8, as per a plat recorded in Plat Book 40, Page 8, of the Public Records of Crowder County, Texas. Sept. 1, 1999; Acts 1999, 76th Leg., ch. (2) the transfer authority specified in the affidavit has not been terminated under Subsection (n) or has not expired under Subsection (o). 8, eff. (i) A person who knowingly causes an affidavit with false information to be executed and recorded under this section is liable for the penalties for filing a false affidavit, including the penalties for commission of offenses under Section 37.02 of the Penal Code. The grantee gets whatever interest the grantor has in the property, but there are no guarantees. the property to someone else. One advantage is that it can be revoked for any reason at any time prior to your death. In executing a quitclaim deed, the signer is in effect releasing, or relinquishing, any claim of title to the transferee. In other words, the grantor is only bound to defend against title defects that occurred during their period of ownership. Note: A Deed is used to remove a name from the house title BUT it does not remove a name from the house mortgage. Basically, there are three parties involved in using a deed of trust to transfer real estate: Typically, the trustee in a deed of trust is a title company or some other company fit to fulfill trustee duties. 297 (H.B. These are the lender (the beneficiary), the borrower (the trustor) and the trustee, a third party that might be a title company. Some of the more commonly used vesting deed abbreviations used in real estate language. A warranty deed should list any easements. For example, everyone in a neighborhood might have to keep their lawns trimmed to a certain height. A valid deed in Texas must name the parties involved (grantor and grantee), their intent to convey property, sufficiently describe the property to be conveyed, and the deed must be signed and delivered by the grantor. Transfer on death assets or propertiesincluding transfer on death deedsare often used during the estate planning process, and have the same goal in mind: To transfer property or assets to the heir when the grantor dies and avoid having to go through probate. (6) proof of service of the mailing of any notice related to a foreclosure sale. (5) the name of the party to whom the land is decreed. grantee is the person who receives the property. JUDGMENT. *Virginia Hammerle, Board Certified in Civil Trial Law by the Texas Board of Legal Specialization, **Virginia Hammerle, 2012, 2013, 2014, 2015, 2016, 2017, 2018 & 2019 Super Lawyer is a Thomson Reuters service, *Robert Morris, 2014, 2015, 2016, 2017 SuperLawyer a Thomson Reuter service. City Fiscal Year. The trustee transfers the property to the buyer when the borrower repays the loan. There are several types of deeds in Texas and well walk you through their definitions and benefits, but its crucial to speak with a Houston real estate lawyer about your unique situation before deciding on which deed to use for your property transfer. Note that land often has easements or other restrictions on use. 678 (S.B. Can't I just use a form. September 1, 2017. (2) property other than property described by Subdivision (1), if the original face amount of the indebtedness secured by the mortgage on the property is less than $1.5 million. September 1, 2009. Before discussing the most common types of property deeds, its important to explain the difference between a title and a deed. But then Gary sells the same property to Bob, even though Gary no longer has a right to do so. Short Title. Easements can be negotiated, obtained through condemnation, or arise after a long-term pattern of use. In a general warranty deed, the grantor guarantees that there are no encumbrances, such as liens or other rightful claims to the property. (2) make any orders the court considers just to provide for discovery by a party affected by the motion. A deed can be any document which accomplishes the goal of setting forth the intent as described above. appraised value. The lands location and boundaries (property description), Encumbrances, if any (limitations on how the land may be used). A deed must be in writing. It makes no promises. (d) An estate or interest in real property in the name of a domestic entity or foreign entity may be transferred on behalf of the entity by one or more individuals identified as authorized to do so in an affidavit described by Subsection (c). How to transfer a modest estate if someone died, left no will, and had only a homestead occupied by the deceased and their survivor(s). It should be noted, however, that some grantors may not be comfortable making such broad warranties, particularly when title defects may have existed before the grantor obtained the property. Sec. This type of deed is typically used to clear up past title problems, such as recently found heirs in the chain of title who were not even aware of their interest in the property. We prepare all documents for any real estate transaction in Texas. Instead, it is more of a release than anything else. Section 347.356 of the Texas Finance Code. The deed must be presented to and accepted by the grantee, and it should be filed of record in the county clerks office to put the public on notice of the transfer. The conveyance that the deed attempts to accomplish happens at the moment of signing and delivery by the grantor to the grantee. In Texas, the trustee of a deed has several duties. (2) active or in good standing under the laws of the entity's jurisdiction of formation. That means if more than one person owns the property, each owner must sign. For instance, to convey title to real estate in Texas, the grantor must execute a deed in front of a notary public. Document Type Codes RECORDED Land Document Codes NOTE: What's in parentheses is the document code from the Instrument Type column of the Deeds Look-up table. AFFIDAVIT OF AUTHORITY TO TRANSFER. Prop. (a) After the plaintiff's statement in an eminent domain proceeding is filed or during the pendency of an action involving title to real property, the establishment of an interest in real property, or the enforcement of an encumbrance against real property, a party to the action who is seeking affirmative relief may file for record with the county clerk of each county where a part of the property is located a notice that the action is pending. Transaction Type | Loan Type | Quality Type | Deed Type | Mortgage Rate | Mortgage Rate Change | Interest Type | Sale | Style Code | Land Use | Garage Type | Basement Type | Patio | Construction | Exterior Wall | Roof | Pool Type | Condition | Foundation | Site Influence | Lender Type | Mortgage Deed Type | Grantee Type | Gra. Texas passed a, Actual notice is when the buyer knows that someone else may have a claim on the property. It usually falls on the homeowner association to enforce such covenants. PROPERTY CODE TITLE 1. The following are the most common types of property deeds youre likely to encounter in Texas: A warranty deed is the most inclusive, and as the term warranty implies, it warranties that the state of the title is good. 997 (H.B. 2491), Sec. It can be difficult to sell property if you cannot show clear title. GRANT FROM GOVERNMENT. September 1, 2005. Eddison S. Titus is the Founder of The Titus Law Firm, a Houston estate planning, business law, and real estate law firm he founded in 2016. Dont worry. You may want to transfer your property to your LLC for asset protection. (g) An affidavit under Subsection (c) operates as a release of the mortgage described in the affidavit if the affidavit, as provided by this section: (3) is not controverted by a separate affidavit by the mortgagee in accordance with the requirements of Subsection (f). The information and forms available on this website are free. (f) After a certified copy of an order expunging a notice of lis pendens has been recorded: (1) the notice of lis pendens and any information derived or that could be derived from the notice: (i) constitute constructive or actual notice of any matter contained in the notice or of any matter relating to the action in connection with which the notice was filed; (ii) create any duty of inquiry in a person with respect to the property described in the notice; or, (iii) affect the validity of a conveyance to a purchaser for value or of a mortgage to a lender for value; and, (B) is not enforceable against a purchaser or lender described by Paragraph (A)(iii), regardless of whether the purchaser or lender knew of the lis pendens action; and. Jan. 1, 1984. A quitclaim deed is an instrument for conveying the interest in a property and doesnt come with a warranty. If notice required by this section is not provided to the mortgagee, the title insurance company or authorized title insurance agent may not file for record the affidavit as a release of lien. A property deed is a legal document that transfers the ownership of real estate from a seller to a buyer.