Ok, yes I am a nerd, and this article may not have widespread appeal, but I think it has some novel and not well-known information that even if never needed or used you will hopefully at least find interesting. The subject is “Quit Claim Deeds.” First things first, it is not and never has been a “Quick Claim Deed.” This term may have arisen, because people thought I just need a quick deed, and this was consider a quick easy solution. Anyway, not sure when people began using that phrasing or at least hearing it, repeating it, and never being corrected, but here is your correction – It’s called a QUIT Claim Deed.
Should I use a Deed Without Warranty
Now that we got that straightened out, it really should not matter, because you should really never use one. If you find yourself in the situation where you need a conveyance to transfer property or have someone convey property to you, and you do not want to warrant (guarantee) any title ownership then a Deed Without Warranty should be used.
I have received calls where somebody says to me, “The bank says I need a quitclaim from my ex-wife before they can refinance my home loan.” He needs a deed, but a quitclaim would not be recommended, and could in fact create potential problems later. A quitclaim deed conveys whatever interest the Grantor has in the property, if there really is any interest, and may not be a deed with any effect at all depending on the existence of other deeds. To make things worse title companies generally in Texas completely disregard them, and treat them as having conveyed nothing when it comes to insuring title. That is one reason why ultimately a quitclaim deed could have no real effect, because if a title company will not insure title received through one then it will be tough to convey that title for any real or significant value.
At Guerra Days Law Group we not only can draft whatever deed you want, but also help identify the right deed to protect your interest and rights as a seller or guarantee the interest you are paying for as a buyer is included in your conveyance.
-Written by Brent Smith (Partner at Guerra Days Law Group)