Starting your own business can be incredibly exciting. However, it isn’t all fun and games. There are many important decisions that must be made at the very beginning of an entity’s lifespan, such as how it will be capitalized, who will hold management authority, how the entity will be taxed and who will be liable for its contract, tort, and statutory obligations. One of the most important decisions business owners make is determining the type of entity for their business.
Category: Business Transactions
If you are considering the transfer of a piece of Texas real estate, land and/or improvements, then you will need to sign a deed. Don’t be fooled by the advice of many that a “quitclaim” deed is all you need. It is not a one size fits all type of document and in most cases, a quitclaim deed is NOT going to accomplish what you intend. There are three basic types of deeds in Texas used to convey real property: (1) general warranty deed, (2) special warranty deed, and (3) deed without warranty. Each primarily accomplishes the same thing with varying levels of protection – conveying the Grantor’s interests in real property. A quitclaim deed, also mistakenly referred to as a “quick claim” deed, can convey any interest in real property when properly drafted, but only if the grantor actually owns an interest in the property. It does not contain any warranty of title. As a buyer, please beware, a quitclaim deed is NOT recognized as effective by most title companies and frequently does NOT constitute a conveyance of real property.