Posted on: 01st Dec, 2008 04:30 pm
An Uncle passed away intestate at least 18 years ago. Some real property he owned with his wife passed down to his son as co-owner. The wife died. Her share passed to her son by a former marriage as co- owner. Uncle's son died and the property has been in the wife's sons possession since. None of these folks had wills.
The wife's son seeks to sell this house that is in danger of foreclosure, and finds that Uncles share that was passed to son who died, has , according to the State of Texas, reverted to his remaining siblings who have now been threatened with a lawsuit on behalf of a man they have never met, about a property they have never seen. The son's attorney has offered a special warranty deed to sign in lieu of going to court for a judgment.
I have tried to read about this and it seems to benefit the seller or buyer, but the remaining heirs make no claim to this property and are not commercial. Would a grant deed be better in this case? Is there anything duplicitous about the Plaintiffs attorney offering the special warranty? Do any of these make the heirs liable for any past present or future costs? I truly hope you haven/t gone off site. I need this answer in a hurry!
The wife's son seeks to sell this house that is in danger of foreclosure, and finds that Uncles share that was passed to son who died, has , according to the State of Texas, reverted to his remaining siblings who have now been threatened with a lawsuit on behalf of a man they have never met, about a property they have never seen. The son's attorney has offered a special warranty deed to sign in lieu of going to court for a judgment.
I have tried to read about this and it seems to benefit the seller or buyer, but the remaining heirs make no claim to this property and are not commercial. Would a grant deed be better in this case? Is there anything duplicitous about the Plaintiffs attorney offering the special warranty? Do any of these make the heirs liable for any past present or future costs? I truly hope you haven/t gone off site. I need this answer in a hurry!
Hi madame tree,
A special warranty deed is not considered as protective of the buyer as is the general warranty deed. In the special warranty deed, the grantor warrants that the grantee has received the title. And secondly, the grantor warrants that the property was not encumbered during their period of ownership unless anything else is specifically noted in the deed.
In the special warranty deed, the grantor declares that neither he nor anyone claiming under him has encumbered the property and that he will defend the title against any issues arising under and through him. But the grantor cannot be held responsible for any other issues.
A general warranty deed, on the other hand, defends the title against all claims whatsoever by anyone. In my opinion, you should better go in for a general warranty deed and not a special warranty deed.
Thanks
A special warranty deed is not considered as protective of the buyer as is the general warranty deed. In the special warranty deed, the grantor warrants that the grantee has received the title. And secondly, the grantor warrants that the property was not encumbered during their period of ownership unless anything else is specifically noted in the deed.
In the special warranty deed, the grantor declares that neither he nor anyone claiming under him has encumbered the property and that he will defend the title against any issues arising under and through him. But the grantor cannot be held responsible for any other issues.
A general warranty deed, on the other hand, defends the title against all claims whatsoever by anyone. In my opinion, you should better go in for a general warranty deed and not a special warranty deed.
Thanks
Hi, James, thank you so much for answering my query. This is the part that confuses me. We have never owned the property, we don't have or want any vested interest in the property. This all came about because the title company these folks are dealing with called the title clouded because of the Texas inheritance laws reverted back to the siblings of a long dead man.
I guess what I really want to know is if the special warranty, which is what their attorney is asking for will absolve my dead uncles siblings from any cost or liability. The general warranty, which you advised defends the title against all claims by anyone almost says they are responsible somehow for every thing concerning a property that was never in their hands. The other person has had it all these years. Ack. I am sorry for being so dense about this.
I guess what I really want to know is if the special warranty, which is what their attorney is asking for will absolve my dead uncles siblings from any cost or liability. The general warranty, which you advised defends the title against all claims by anyone almost says they are responsible somehow for every thing concerning a property that was never in their hands. The other person has had it all these years. Ack. I am sorry for being so dense about this.
Hi Madame Tree,
As far as I know, the special warranty deed is granted in REO and new construction transactions. These deeds are known to grant a narrow warranty that covers only title defects which are created by the seller. If the defect existed before the seller took title, it will not be covered by the warranty.
I think you should contact a lawyer and take his opinion. He will be able to tell you about the legal terms and conditions included in signing the deed.
Thanks
As far as I know, the special warranty deed is granted in REO and new construction transactions. These deeds are known to grant a narrow warranty that covers only title defects which are created by the seller. If the defect existed before the seller took title, it will not be covered by the warranty.
I think you should contact a lawyer and take his opinion. He will be able to tell you about the legal terms and conditions included in signing the deed.
Thanks
A Quitclaim Deed is best in this situation. Do not sign an Special or Warranty Deed. Since you have no property interest, you are not conveying any title, only renouncing title. This is the purpose of a Quitclaim Deed. Some lawyers will try to get you to warrant title so they can nail you later on if some other heir comes out of the woodwork. DO NOT DO THAT. If you have any questions, consult with an attorney.
I do believe that is what I am looking for. Renouncement of title to a property we have never had possession of, never built upon or degraded, paid taxes upon or caused arrears. No responsibility for.
Thank you very much!
Thank you very much!