05/27/2021
Good news for the real estate industry out of Austin.
Governor Abbott has signed SB 885, Senator Hughes Quitclaim Bill. The Texas Land Title Association lobbied hard to get this bill passed. In the past if a quitclaim deed appeared in the chain of title, a subsequent purchaser was on notice of a potential claim from an unrecorded matter and could not obtain bona fide purchaser status. As of September 1, 2021 after a quitclaim deed has been properly filed in the public records for four years, a subsequent purchaser or creditor will have good faith protection and will not have to worry about unrecorded claims. IMPORTANT, parties should still avoid using quitclaim deeds to transfer interests in real property. In most cases, a deed without warranty can have the intended benefit that parties associate with quitclaim deeds.