San Antonio Injury Attorney Blog
Throughout San Antonio and Texas, many people have to buy and sell real estate using a variety of deeds. While it certainly helps to have a Texas real estate lawyer , you should understand the various difference between the deeds so you are at optimal protection when buying property.
There are three basic types of deeds used to buy and sell Texas real estate – general warranty deed , special warranty deed, and quit claim deed. Today, we will discuss special and general warranty deeds.
Whether you are selling a home, commercial property, or just plain land in San Antonio, the purchaser will want you to provide assurances that you actually own the property and possess the legal right to sell it. The buyer will probably be getting a loan. The lender will request guarantees that you as the seller are providing complete title to the real property and that the lender can place a legally enforceable lien on the property.
Do not be fooled between the wording Special versus General Warranty Deed. You as the buyer want a General Warranty Deed. When the seller offers a General Warranty Deed, he or she is essentially promising two things. First, the seller is promising the buyer that he has not done anything to harm title to the property. Second, the seller is warranting that no one prior to the seller has done anything to harm clear title. If down the line, if the buyer finds out that there is not clear title, the seller is liable for any losses regardless of whether the seller had knowledge. The seller might be able to file claims against prior sellers if he had a general warranty deed with them.
Under a Special Warranty Deed, all the seller is telling the buyer is that he has not done anything to harm title to the property. However, the seller is not giving the buyer a warranty that other owners before him did not do anything to adversely affect title.
To illustrate, suppose the seller sells the Texas property to another purchaser before they sell it to you or the seller attaches a lien without informing you, then the seller has breached the warranty, because the seller adversely affected title. However, if someone other than the seller created a title defect, you as the buyer have no recourse against the seller under a Special Warranty Deed. The Special Warranty Deed is used mainly in Texas real estate commercial transactions .
You as the buyer should not rely on the title of a deed to determine if the deed is a general or special warranty deed. Read the deed carefully. If you believe you have been the victim of fraud in the purchase of property, you should file a complaint with the Texas Real Estate Commission (TREC).
Sometimes the type of deed is not consequential. For example, if either the seller provides title insurance or the buyer obtains title insurance, then the title company will protect you against problems with title. Should a defect arise with title, the insurance policy will reimburse the buyer for any losses.
For assistance with your San Antonio and Texas real estate transactions, contact a real estate attorney today!