“In Texas, deeds are construed to confer upon the grantee the greatest estate that the terms of the instrument will allow. This is true even if the deed “purports to transfer a greater right or estate in the property.” Prop. 5.001.Ī deed can only convey what the grantor owns and no more. 2017).Ī deed conveys fee simple title “unless the estate is limited by express words or unless a lesser estate is conveyed or devised by construction or operation of law.” Prop. by conducting a careful and detailed examination of the deed in its entirety.” Wenske v. In the event of ambiguity or controversy, the goal of a court in interpreting a deed is “ascertaining and effectuating the parties’ intent. If there is a signed written document that identifies a grantor and grantee, provides a reasonably accurate description of the property, and clearly contains the intention to convey, then that document is a “deed” under Texas law. If, from the whole instrument, a grantor and grantee can be ascertained, and if there are operative words of grant showing an intention of the grantor to convey title to a real property interest to the grantee, and if the instrument is signed and acknowledged by the grantor, it is a deed which is legally effective as a conveyance.” Harlan v. “For a deed or instrument to effect conveyance of real property, it is not necessary to have all the formal parts of a deed formerly recognized at common law or to contain technical words. In particular, when a grantor intends to accomplish a specific objective and limit liability in doing so, the wording of a deed can be critically important. Having said this, it is not true that all deeds are created equal. For instance, the parties should be named, the intent to convey property must be clear from the wording, the property must be sufficiently described, and the deed must be signed by the grantor and delivered to the grantee. Texas does have certain rules that apply if a deed is to be valid. There is no standard form for a deed although Property Code Section 5.022(a) offers a simple form that may be used for conveyances. It is deliberately organized in pragmatic fashion and is not intended as a comprehensive academic review of the topic. This article briefly describes different types of deeds commonly used in connection with real estate transactions in Texas. A warranty deed, note, and deed of trust are the three principal documents in most Texas residential real estate transactions. This can have significant value if the transaction involves special provisions upon which the parties are relying.Ī deed is to be distinguished from a promissory note (or real estate lien note) which is a promise to pay a sum of money, and from a deed of trust, which provides the lender with remedies (including foreclosure) if a borrower defaults on the note. Note that if a deed includes custom clauses and is executed by both parties (not just by the grantor as in the usual case), then it becomes a contract as well as a conveyance. An obvious example would be inclusion of an “as is” clause to protect the seller from post-closing lawsuits. Problem is, inclusion of additional custom clauses may be both useful and necessary in order to accomplish the terms of the deal. Title company deeds generally lack clauses that add additional protection for the grantor or grantee since it not the job of the title company or its attorney to protect the interests of either party beyond a simple conveyance with general or special warranties. This is true even though Property Code Section 5.022(b) expressly states that “the parties to a conveyance may insert any clause. It is difficult to imagine a more important document to the real estate investor, and yet its preparation is often left to a title company attorney who represents neither buyer nor seller and has no incentive to produce anything other than a basic boilerplate form. One can own a fee simple estate in both legal and equitable property interests.” Jackson v. An instrument that does not operate as a present conveyance of title to real property is a contract to convey rather than a deed.” Smith v. “A purchaser takes title to real property solely through a deed. “An absolute or ‘fee simple’ estate is one entitling the owner to the benefits of that estate during his life and descending to his heirs, devisees, and legal representatives on his death. A deed is a written instrument that conveys legal and equitable title to real property-the legal term is a “fee simple” interest, meaning the highest level of ownership.
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