Warranty Deed vs. Quitclaim Deed in Texas: What's the Difference and Which One Do You Need?

If you're buying, selling, or transferring property in Texas, you may have heard the terms "warranty deed" and "quitclaim deed" used interchangeably - but they are very different instruments with very different legal consequences. Using the wrong one can leave you with little or no recourse if a title problem surfaces later. This blog explains the key differences between these two deed types in plain language, so you can understand what you're signing and what protections you may - or may not - be receiving.

What Is a Warranty Deed?

A warranty deed is the most common deed used in Texas real estate transactions. When a seller (the grantor) delivers a warranty deed to a buyer (the grantee), they are making a legal promise - called a covenant of warranty - that they have the legal right to sell the property and that the title is free of defects. If someone later makes a claim against the property that the grantor was responsible for, the grantee has a legal remedy against the grantor under the warranty. Texas recognizes two types of warranty deeds: general warranty deeds (which cover all claims against the title, going back to the beginning of the chain of title) and special warranty deeds (which cover only claims arising during the grantor's period of ownership).

What Is a Quitclaim Deed?

A quitclaim deed is a fundamentally different type of instrument. Rather than conveying the property itself with guarantees, a quitclaim deed transfers only whatever interest the grantor may have - if any. The Texas Supreme Court has made this distinction clear: a warranty deed conveys property, while a quitclaim deed conveys only the grantor's rights in that property, which could be nothing at all. There are no covenants, no warranties, and no assurances about the validity of the title. Quitclaim deeds "express upon their face doubts about the grantor's interest" - meaning the recipient is put on notice from the outset that there may be problems with the title.

When Are Quitclaim Deeds Appropriate - and When Are They Not?

Quitclaim deeds serve legitimate purposes. They are commonly used to clear up errors in property records, resolve boundary disputes, remove a person's name from a title (such as after a divorce), or convey interests of uncertain or disputed extent. What they are not designed for is serving as the primary deed in a standard property sale or family transfer where a clean conveyance of title is the goal. Many people mistakenly use quitclaim deeds in situations where a warranty deed would have been far more appropriate - often because quitclaim deed forms are easy to find online. This can create serious title problems that are difficult and expensive to resolve later, including issues with obtaining title insurance.

Key Legal Differences Between Warranty Deeds and Quitclaim Deeds

Here is a side-by-side breakdown of how these deeds differ under Texas law:

• What is transferred: A warranty deed conveys the property itself. A quitclaim deed conveys only the grantor's interest, if any exists.
• Warranties provided: A warranty deed includes covenants that protect the grantee if a title defect arises. A quitclaim deed contains no warranties of any kind.
• Remedy for title defects: Under a warranty deed, the grantee may have a legal claim against the grantor for breach of warranty. Under a quitclaim deed, the grantee generally has no such remedy.
• Title insurance: Quitclaim deeds can complicate or prevent title insurance coverage, which lenders almost always require.
• Adverse possession: Under Texas law, the five-year adverse possession limitations period that applies to claims under duly registered deeds does not apply to quitclaim deeds.
• Implied covenants: Under Texas Property Code Section 5.023, using the words "grant" or "convey" in a deed implies limited covenants by operation of law. A quitclaim deed does not create these implied covenants.

Special Warranty Deeds: The Middle Ground

Between the broad protection of a general warranty deed and the no-protection approach of a quitclaim deed sits the special warranty deed. A special warranty deed limits the grantor's liability to title defects that arose "by, through, or under" the grantor - meaning only during the grantor's period of ownership. This type of deed is frequently used in commercial transactions, bank-owned property sales, estate sales, and post-divorce transfers. Importantly, the Texas Supreme Court has confirmed that a special warranty deed is not a quitclaim deed because it still gives the grantee meaningful recourse against the grantor for any title defects that originated during the grantor's ownership.

Not Sure Which Deed Is Right for Your Situation?

The choice between a warranty deed and a quitclaim deed - or between a general and special warranty deed - depends on the specific facts of your transfer. Getting this right matters, because the type of deed you use affects your legal rights for years to come. If you have questions or would like a deed prepared for your specific situation, you are welcome to submit a request. A Texas attorney will review your circumstances and discuss the appropriate options.