Buying or selling, if you are currently looking into moving a piece of property, you want to get a handle on understanding the types of deeds in Texas. Fortunately, our Montgomery County business attorney has provided a simple explanation in the blog below. Keep reading for more information on deeds.
What is a Deed?
Understanding the function of a deed is essential for anyone looking to buy or sell his or her property because a deed is a written legal document that establishes both legal and equitable title to real property. The deed is the document that details information regarding the property’s title and any obligations owed to the buyer by the seller. Below is a list of different types of deeds available in Texas.
General Warranty Deeds
A general warranty deed is the preferred form of deed because it expressly warrants the title chain and binds the seller to defend against any defects in the title. This deed contains both express and implied warranties and is the most common deed used in residential real estate transactions.
Special Warranty Deeds
A special warranty deed is a deed that requires the seller only warrant the property from the time they took possession of it. This means, if there is a defect in the property that occurred before the seller owned it, they are not required to defend them. Special warranty deeds are commonly used for commercial transactions.
Deeds without Warranties (AKA “Quit Claim” Deed)
A deed without a warranty does not come with any express or implied warranties meaning the seller does not need to defend any defects. This type of deed simply conveys the property as is.
Transfer on Death Deed
A revocable transfer on death deed (“TODD”) is a way to assign a right of survivorship on a tract of property. A TODD transfer the property to listed beneficiaries automatically at your death. Used properly and in the right circumstances, a TODD can help avoid probate.
At Dossey & Jones, PLLC, we have proudly served the Montgomery, Texas areas for over a decade. Whether you are looking legal advice regarding estate planning, business formations, and sales or probate administration, our team of lawyers, CPAs, and accountants can help you. Contact us (281) 410-2792 to schedule your consultation.