Understanding the Different Types of Property Deeds 

It’s likely you’ve heard the term “deed” before and know that it relates to a property. But what exactly is a deed and what should you know about deeds before entering into a contract? In this article covers deeds in detail so you have a clearer understanding of what they are and how they relate to real estate transactions. If you need further information or legal advice about deeds, contact a real estate attorney. 

What is a deed?  

A deed is the written instrument used to transfer real property from a grantor to a grantee. The deed represents ownership of the property. For a deed to be valid, it needs to meet these criteria: 

• It must be written,  
• Signed by the grantor 
• Names the grantee 
• Contains a sufficient legal description of the property conveyed 
• Delivered and accepted by the grantee 

Who is the grantor and grantee?  

The grantor is the current owner the real property who is transferring property to the new owner (i.e. the seller). A grantee is the person to whom the property is being conveyed, the new legal owner of the property (i.e. the buyer).  

What are the different types of deeds?  

There are three categories of deeds: quitclaim, general warranty, and special warranty. Let’s look at each type of deed further.  

Quitclaim deed 

This type of deed transfers whatever interest the grantor has in the property to the grantee. However, it does not warrant that the grantor’s title is good or that there are no encumbrances on the property.  

Therefore, if the grantor does not have a valid ownership interest in the property, the grantee will not acquire any ownership rights in the property either. Any liens encumbering the property, such as unpaid tax assessments or outstanding mortgages, will remain and become the problem of the grantee.  

General warranty 

This is the preferred type of deed because it fully warrants that the title being transferred is fully valid and free of encumbrances.  

A general warranty makes five specific guarantees:  

1. The grantor owns the land being conveyed. 
2. The grantor had the power and authority to sell or give the property to the grantee.  
3. There are no easements, mortgages, liens, or other encumbrances on the property. 
4. The grantor will help the grantee defend against lawsuits brought by third parties claiming superior title to the transferred property. 
5. The grantor promises that he or she will do whatever is needed to perfect the conveyed title if it turns out that his title was defective.  

Special warranty 

This deed makes the same type of guarantees as a general warranty deed, but it only warrants against defects that arose during the time that the grantor owned the property. It offers no protection for defects that arose before the grantor owned the property.  

Who prepares the deed?  

The final deed can be prepared and recorded by the title company who conducted the deed preparation services, such as a title search, in conjunction with the sale of the property. Alternatively, the grantor may hire an attorney to prepare the deed. It is recommended that a real estate attorney is hired to ensure that all the requirements of the deed are satisfied.  

Does a deed need to be recorded?  

A deed does not need to be recorded to validate the transfer of the title. Even if the deed is not recorded, it will be enforceable against the parties to the transaction. However, a conveyance of property is not enforceable against third parties, like creditors or subsequent purchasers who have no notice of your competing interest, unless the deed is recorded.  

Texas law requires notice and will not protect your interest even if you were first in time. Therefore, the deed should always be recorded to protect your superior claim to the property. A deed may be recorded if the grantor’s signature was notarized or the grantor signs and acknowledges the deed’s validity in the presence of two witnesses.  

Do you have more questions about deeds?  

Tony Malley at Texas Land Brokers is both a real estate attorney and broker. Unlike other real estate brokers, he can help you with your real estate transaction and provide the legal advice you need to effectively close the deal.