In most U.S. states, people use quitclaim deeds to transfer property to family members for estate or gift planning. But in Texas, using a quitclaim deed can backfire. It can destroy bona fide purchaser protection and create title problems that make the property hard to sell or insure.
This article discusses Texas quitclaim deed law, including the pitfalls of Texas quitclaim deeds and deeds without warranty as a better alternative.
The Bona-Fide Purchaser for Value Rule
A bona fide purchaser for value (BFP) is someone who buys property in good faith (believing title to be free of defects). Texas law protects BFPs from claims against the property arising from unrecorded prior documents.
The rationale for the BFP rule is simple: If a buyer paid for property in good faith and examined the chain of title, that buyer should not be responsible for claims arising from prior documents that do not appear in the chain of title.
To illustrate, assume that Able deeded property to Baker in 2012. Baker did not record the deed. In 2025, Able later sold the same property to Charles, who was unaware of the prior deed to Baker.
Because Baker failed to record the 2012 deed, Charles had no way of knowing about the earlier conveyance to Baker. Texas law favors Charles as the innocent party (the BFP) and is not sympathetic to Baker, who could have recorded the earlier deed but failed to do so. Charles owns the property free of Baker’s unrecorded claim.
The BFP rule protects both the original BFP and later owners who acquire title from the BFP. Each bona fide purchase clears all claims arising from earlier unrecorded documents.
Texas Quitclaim Deeds Destroy BFP Status
Under Texas law, a buyer who takes property by quitclaim deed cannot be a bona fide purchaser.1 Because the deed only conveys whatever interest the grantor happens to hold, Texas law treats the quitclaim deed as notice to the grantee that there could be earlier unrecorded claims against the property. When a grantee accepts a quitclaim deed, Texas law treats the grantee as knowing that the title may be flawed. The grantee therefore cannot claim good faith.
Later buyers in the chain of title are affected as well. A quitclaim deed puts all future owners on notice of potential claims. Historically, this has meant that a single quitclaim deed in the chain of title prevents any future buyer from claiming BFP protection.
The 2021 Amendments and the Four-Year Rule
In 2021, the Texas legislature passed a new Texas law to allow buyers to claim good faith when quitclaim deeds appear in the chain of title.2 Under the 2021 amendment, once a quitclaim deed has been recorded for four years:
- The quitclaim deed does not affect the good faith of future buyers or creditors
- The law does not treat the quitclaim deed as notice to future buyers of possible defects from unrecorded documents
This new rule applies to any quitclaim deed that is recorded after September 1, 2021. It allows a buyer to claim BFP protection notwithstanding a quitclaim deed in the chain of title, as long as the quitclaim deed has been recorded for at least four years. This approach aligns Texas law with the treatment of quitclaim deeds in most other U.S. states.
Texas Quitclaim Deeds and Title Insurance
Title insurers are concerned about the risk that someone could assert a claim based on a prior unrecorded document. Because Texas quitclaim deeds leave open the possibility of these claims, Texas underwriters have historically been reluctant to issue a title insurance policy if property has a quitclaim deed in the chain of title. If a quitclaim deed appears in the chain of title, most underwriters require a corrective deed or quiet-title action before issuing a policy.
The Texas Title Examination Standards now include the new four-year rule.3 Theoretically, this rule should make Texas insurers more comfortable with older quitclaim deeds in the chain of title. But title insurance is a conservative industry. Expect Texas title insurers to move slowly until the courts and regulators confirm how the new statute works in practice.
Texas Deed Without Warranty as a Texas Quitclaim Deed Alternative
Texas attorneys use a deed without warranty as an alternative to a Texas quitclaim deed. Like a quitclaim deed, a deed without warranty does not include a warranty of title. But unlike a quitclaim deed, a Texas deed without warranty conveys the property—and not just whatever interest the grantor has in the property—to the grantee.
This small difference in language has important consequences. It makes the deed a true conveyance of the property, not just a speculative interest in the property. A deed without warranty conveys all of the grantor’s interest as fully as one with warranty.4
For Texas property transfers, avoid quitclaim deeds. A deed without warranty gives the same result without jeopardizing title or insurance coverage.
- See Texas Title Examination Standards collecting the classic cases: Rodgers v. Burchard, 34 Tex. 441 (1871); Threadgill v. Bickerstaff, 29 S.W. 757 (Tex. 1895); and the rationale in Richardson v. Levi, 3 S.W. 444 (Tex. 1887). ↩︎
- Tex. Prop. Code § 13.006. ↩︎
- See Texas Title Examination Standards (Proposed Standard 4.90). ↩︎
- Flanniken v. Neal, 4 S.W. 212 (Tex. 1887). ↩︎