A quitclaim deed is a purported transfer of a grantor’s right, title, and interest in a property; which is far different that other types of deeds such as general warranty or special warranty deeds which convey a property from one party to another. Our office receives calls on a daily basis request to draft Quitclaim Deeds (often mispronounced “Quick Claim or Quick-claim”) based on poor advice from internet searches.
Because a quitclaim deed essentially releases whatever interest the grantor may have in of real property it typically is used as a clarifying instrument and commonly used to invalidate disputed claims of interest in suits to quiet title, breaches of contract cases and similar real property lawsuits. Most of the time, the quit claim does not amount to an actual conveyance and if mistakenly relied on as such, can lead to a cloud on the Grantee’s (or quitclaimee’s) interest in the property. Effectively, the quitclaim only acts as an estoppel against the grantor should he or she later claim an interest in the property conveyed.
Quitclaim deeds in Texas should only be used in very narrow circumstances. When buyers or sellers have used these types of deeds commonly pulled from an online legal site, there is typically more cost to correct the instrument than would have existed from the beginning if an experienced real estate lawyer would have drafted it. Since title companies are inherently risk-adverse, quit claims are one of the least favorite instruments since they often express doubt, disclaim warranty and should (if properly drafted) expressly inform the grantee of the potential defects of the grantor’s title with words like:
“For the Consideration, Grantor quitclaims to Grantee all of Grantor’s right, title, and interest in and to the Property, to have and to hold it to Grantee and Grantee’s heirs, successors, and assigns forever. Neither Grantor nor Grantor’s heirs, successors, or assigns will have, claim, or demand any right or title to the Property or any part of it.”
Despite what most of the online legal website may profess, the use of quitclaim deeds in Texas is unadvisable without the guidance of a good Texas Deed “specialist” Lawyer. If you are presented with a situation in which you are being advised to use a quitclaim deed, you should seek legal advice from a Texas Real Estate Attorney. The Real Estate Attorneys at The Farah Law Firm, P.C. will gladly explain why using a quitclaim deed is not preferable and guide you towards the proper type of conveyance instrument for your situation.