Other Deeds in Texas
February 18, 2014 | By Vela Wood
Previously, we discussed the four major deeds in Texas: general warranty deeds, special warranty deeds, no warranty deeds and quitclaims. While these are the most common deeds, there are other deeds in Texas that are used to convey ownership.
An assumption deed allows a grantee to assume liability for existing indebtedness and promise to discharge one or more existing liens against the property. Usually assumption deeds include covenants of general or special warranty deeds—the difference is that in a general or special warranty deed, the grantee is assuming title but not the underlying debt. With an assumption deed, the grantee is assuming title and the underlying debt. However, it is important to note that the obligation is to the grantor not the lender. The grantor is still responsible to the lender unless the lender expressly releases the grantor.
Deed Incident to Divorce
Another deed is a deed incident to divorce. These are typically special warranty deeds that include language similar to the following: “Consideration for this transaction is the division of property pursuant to a Final Decree of Divorce dated _____________, entered in Cause No. _______________, IN THE MATTER OF THE MARRIAGE OF ______ & ___________, in the _____________ District Court of ________ County, Texas.” This deed may also include language that creates a lien in favor of the grantor to secure payment of a certain sum from the other spouse. It is important that a deed incident to divorce is obtained in addition to a final divorce decree in order to ensure proper disposition of the property. A final divorce decree cannot convey ownership of the property; it merely states who is entitled to the property.
Deed in Lieu of Foreclosure
A deed in lieu of foreclosure allows property to be transferred to a lender in satisfaction of a debt and exchange for a full and complete release. However, these deeds are not very common because it is more advantageous for a lender to simply foreclose on the property. When a lender forecloses it clears up title by eliminating junior liens and establishes a deficiency amount for which the lender can then sue.
Since there is no form for deeds in Texas, there are a wide variety of deeds that can convey ownership of property in Texas. If you have any questions regarding these deeds or any other real property conveyance tools, please contact us at (214) 821-2300.
Posted in Real Estate
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