Types of Specialized Deeds in Texas: Part 1
In our last article, we discussed the four most common types of deeds in Texas. They are general warranty deeds, special warranty deeds, quitclaim deeds, and deeds without warranty. In this first installment of a two-part series, we will go over various types of specialized deeds, each with its specific purposes, requirements, and benefits.
Cemetery Plot Deed
A Cemetery Plot Deed is a specialized instrument used to convey the right of use for a burial plot within a cemetery. This deed is typically simple but must be compliant with state and local regulations governing cemeteries. Usually, it includes a description of the burial plot, the grantor (usually the cemetery association), and the grantee (the purchaser or assignee).
Correction Instrument
Sometimes errors occur in the drafting or recording of deeds—be it misspelled names, incorrect legal descriptions, or other errors. A Correction Instrument addresses these inaccuracies by amending the original document. The Correction Instrument should refer explicitly to the original deed and clearly specify the errors being corrected. There are specific requirements on the form of the Correction Instrument and who must sign depending on whether an error was material or not.
Dedication Deed
A Dedication Deed is used by property owners (often developers) to donate land for public use, such as parks or roads. This deed serves as a formal method of transferring property to a governmental body. It usually contains a statement indicating the owner’s intent to dedicate the land for public use and may involve various regulatory approvals.
Deed in Lieu of Foreclosure
This type of deed allows a borrower facing foreclosure to voluntarily transfer the ownership of the property back to the lender to satisfy a loan that is in default. Sometimes a Deed in Lieu of Foreclosure may be useful in making the best out of a difficult situation by providing an alternative to foreclosure.
Deed of Trust
A Deed of Trust is not technically a deed for transferring property ownership. Instead, it creates a lien on real estate to secure a loan (a mortgage). If the borrower defaults, the trustee may sell the property to satisfy the debt, following the procedures for foreclosure set forth in Texas law and the Deed of Trust.
Fiduciary or Representative Deed (e.g., Executor’s Deed)
In certain situations, property must be transferred through a fiduciary, such as an executor of an estate, a trustee of a trust, or a guardian of a minor. An Executor’s Deed, for instance, is used to transfer property from an estate to an heir or buyer, pursuant to a will or court order. This specialized deed typically outlines the fiduciary’s authority and any limitations imposed by law or a governing document.
Gift Deed
A Gift Deed is a deed used to transfer property ownership without monetary exchange, typically among family members. While a Gift Deed is a simpler mechanism for property transfer, it still needs to meet all legal requirements for a valid deed in Texas. Importantly, the deed should clearly state that the transfer is a gift and not a sale, to avoid misunderstandings and potential tax implications.
In summary, these specialized deeds each serve unique functions in Texas real estate law. Stay tuned for Part 2 of this series, where we’ll discuss more specialized deed types.
This article is not legal advice. If you have questions about this article or are considering a real estate transaction, contact the trusted and experienced real estate attorneys at Moore Ganske Murr Sessions pllc. Our real estate practice group includes attorneys board certified by the Texas Board of Legal Specialization in Commercial Real Estate Law, Residential Real Estate Law, and Farm and Ranch Real Estate Law.