When conveying real property from one party to another, or when conveying an interest in real property, a deed must be executed and filed of record. What is a deed? A deed is a document that establishes legal and equitable title to the real property. There are other documents that are done in the transferring of property such as the note and deed of trust, but the deed is the most important to the buyer, because it shows what is being conveyed and by whom. In Texas there are five requirements for a deed to be valid:
- The deed must be in writing
- The deed must be signed by the seller
- The deed must include the buyers name
- The deed must contain the legal description; if it is acreage it must include an Exhibit “A”.
- The deed must be delivered and accepted by the buyer.
There are three main types of deeds you will see.
- General Warranty Deed: This is the most common type of deed used in residential real estate transaction. This deed contains both express and implied warranties, it binds the seller to defend against any defects of title, even if those defects were created prior to the date the seller took ownership.
- Special Warranty Deed: This type of deed is where the seller only warrants title from the time it took ownership of the property. The seller is only bound to defend against defect of title that occurred during its period of ownership
- Deed without Warranty: This type of deed simply is a conveyance of the property without any express or implied warranties. The seller is not bound to defend against any defects of title regardless of when they arose.
You might have heard of a type of deed called a Quitclaim Deed. This technically isn’t a deed. It doesn’t actually convey anything, instead it’s more of a release. The signer is in effect releasing any rights, title or claim to the transferee.
If you have any questions regarding a deed you may have received without title insurance please don’t hesitate to reach out to us here at Red River Title. We would love to answer any questions you have.