This past legislative session saw the enactment of a few bills that can affect real estate transactions. Here’s part 3 of the 4-part series.
Here’s a brief summary of one of the bills that may be of interest:
Senate Bill 885: Quitclaim Bill
A Texas quitclaim deed is a specific type of deed that releases whatever interest is owned by the person signing the deed. The person that signs the deed does not guarantee that he or she owns or has clear title to the real estate described in the deed.
When a title company sees a quitclaim deed has been filed in the “chain of title” we are infrequently able to rely on that deed and we have to require that a new general warranty deed be signed to replace that deed.
Oftentimes the parties that signed the quitclaim deed are now deceased or unable to be reached. With the help of this new bill a title company will be able to rely on a quitclaim once it has been on record for four years.
Please note that it is only applicable to deeds filed after September 1, 2021. This means we will be able to rely on this law four years from now to help the person signing the deed will not owe interest.
Please remember I am not an attorney so please consult an attorney for further clarification. For any other questions, please feel free to call me 817-952-9000
