Common Terms in Real Estate
We believe in the importance of an informed client. You deserve a voice in your case, and understanding these common terms can help you navigate your situation — no matter who you choose to work with.
- Warranty Deed: is the usual document to transfer ownership of real property in Texas to another. The most important elements contained in the deed are that the person signing it actually owns the property, and it is free and clear of any liens except those contained in the deed.
- Quit Claim Deed: Never use this document in Texas. A title company will not insure a sale based on this deed. Unlike a warranty deed, the quit claim deed does not imply that the person signing actually owns anything. It is a deed of relinquishment rather than a deed of conveyance. Out of state lenders often tell borrowers to get a quit claim deed, which will not fix the problem. The borrower always has to go back and get a warranty deed.
- Special Warranty Deed: is the same as the warranty deed but it conveys the property free and clear of any liens created by the signing party. There may be other liens that the signing party did not create.
- Vendor's Lien: can be added to either warranty deed or special warranty deed and means that a lien is being created for the purchase of the property.
- Deed of Trust: is the document which ties the note to the property so that the property can be sold if the note is not paid. It does not create the debt, but it secures the debt to the land.
- Deed of Trust to Secure Assumption: also known as DTSA, is a document to protect a person that is liable on a note and is conveying the property to another person who is supposed to pay the note. If the other person does not pay the note then the secured person under the DTSA can cure the delinquency and foreclose on the property without the original note becoming due. Should always be done when you are liable on a note and convey the property to someone else. If there is no DTSA, your credit can be ruined without a remedy to cure the problem.
- Grantor: The party conveying or giving a thing.
- Grantee: The party receiving a thing.
