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  1. #1
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    Default Types of Warranty Deeds

    My question involves real estate located in the State of: Texas

    My mom's home was recently stolen with a forged deed. We've reported it to the authorities and filed a forgery affidavit. The next step is a action to quiet title.

    There were 3 sales of the house in a 6 week period,all of which were a labeled a "warranty deed." My question is how does one determine the type of warranty deed(general/special)? Is there some phrase or terminology within it that would give an indication or is it considered general if not explicitly stated?

    I'm also interested in the possible actions of the end buyers. They purchased it for cash with intentions to flip and obtained no title insurance. Attorneys we've consulted indicated they are SOL but I guess I'm looking for opposing viewpoints. They called us(we made them aware about six weeks ago) and stated a lawyer told them that they purchased the property in good faith and no judge would take it away from them or any person they sold it to and that we must seek our recourse through a civil suit with the forger. Could there be any circumstances that would make this true? I took it as a bluff but still wonder.

    As a side note,the original "buyer" and notary have been charged with forgery in our case. The buyer also faces four similar charges in other houses and potentially 2 dozen total cases,assuming they can locate the owners and the DA goes forward with the cases which they are usually not interested in.

    Thanks for any insight.

  2. #2
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    Default Re: Types of Warranty Deeds

    Quote Quoting brad0
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    My question involves real estate located in the State of: Texas

    My mom's home was recently stolen with a forged deed. We've reported it to the authorities and filed a forgery affidavit. The next step is a action to quiet title.

    There were 3 sales of the house in a 6 week period,all of which were a labeled a "warranty deed." My question is how does one determine the type of warranty deed(general/special)? Is there some phrase or terminology within it that would give an indication or is it considered general if not explicitly stated?

    I'm also interested in the possible actions of the end buyers. They purchased it for cash with intentions to flip and obtained no title insurance. Attorneys we've consulted indicated they are SOL but I guess I'm looking for opposing viewpoints. They called us(we made them aware about six weeks ago) and stated a lawyer told them that they purchased the property in good faith and no judge would take it away from them or any person they sold it to and that we must seek our recourse through a civil suit with the forger. Could there be any circumstances that would make this true? I took it as a bluff but still wonder.

    As a side note,the original "buyer" and notary have been charged with forgery in our case. The buyer also faces four similar charges in other houses and potentially 2 dozen total cases,assuming they can locate the owners and the DA goes forward with the cases which they are usually not interested in.

    Thanks for any insight.
    They are bluffing or misinformed. They are SOL. They bought it from a con artist. They are the ones that only have recourse against the con artist. Unless of course they end up being the con artists themselves, which does appear to be quite possible.

  3. #3
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    Default Re: Types of Warranty Deeds

    1 - You need to actually hire a lawyer and rely on what he tells you.

    2 - Google the warranty deeds and you'll see samples of each and you'll be able to tell the difference in the wording.

    3 - The current owners "state" that they talked to an attorney. Until they give you the name and phone number of their attorney and he confirms that they are represented you can ignored the statement.

    4 - People who buy any kind of stolen property generally lose it and the money they paid for it.

    5 - A criminal prosecution might punish the perpetrators but isn't likely to get the house back. See number 1.

  4. #4
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    Default Re: Types of Warranty Deeds

    A special warranty deed should clearly state that it is a "special warranty deed", and will recite the limitations on the warranty -- i.e., that no warranty is given in relation to transactions predating the grantor's taking of title.

    I think this helps you out....
    Quote Quoting Commonwealth Land Title Ins. Co. v. Nelson, 889 S.W.2d 312, 318 (Tex.App.-Houston [14th Dist.
    1994, writ denied)]A forged deed is void ab initio and inoperative.... Title to land cannot pass under a forged deed.... The fact that the grantee and his assigns are innocent purchasers makes no difference because no person can be an innocent purchaser of land where there is a forgery in the chain of title.... A forged deed lacks effectiveness ab initio and neither consent, waiver, estoppel, implications, delivery, nor recording can give any legal effect to such an instrument.
    See the citations in the original, as well as the subsequent cases that cite it as authority.

  5. #5
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    Sep 2014
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    Default Re: Types of Warranty Deeds

    Thanks for the prompt responses. This confirms much of what i have seen and been told. It was my understanding it would be they who needed to sue the forger to regain their money and we would regain the property.

    As i stated, we have consulted a few attorneys to get an idea of our rights. It may be a month or so before we have the money to officially retain one. It is correct tht a civil suit will be necessary to recover the title. Criminal charges won't do that. We also lost everything in the home but police won't file theft or burglary bc they cannot prove who actually emptied it out. It is my understanding we could file another civil suit but damages are limited to 10k. The notary's bond company is also something we hve been told to consider.

    The current owners did consult an attorney,probably referred there by the agent listing the property as both have offices in the same building.I'm just not sure that the info they conveyed to us is what the man said.

    As for the deeds,they all look the same,just a 2-3 paragraph template document labeled "warranty deed" at the top with names and descriptions hand-written in the blanks. The first two are the same. I'd likely classify them as general. In the third,however,the seller wrote in "this property is sold as is with no warranty." That has seemed strange to me from the start bc i was never sure to what it was referring. Now i kinda view it as an attempt to limit her liability in case something popped up later. Currently the authorities see the second seller as an unwitting victim but i've never been convinced.

    Interestingly the end buyers were asked to make the cashiers check out to the company of the forger so i imagine that the second title change wasn't so much a purchase but a way to muddy te picture or distance the forgers from the transaction.

    Thanks for any insight.

  6. #6
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    Default Re: Types of Warranty Deeds

    Each party that recieved the property via warranty deed would also have an action against the grantor for title to the property as that is what you are warranting when using a warranty deed.

    You should file a quiet title action to clear up any of the claims others may have. The result (as long as it is found in your favor) would be a clear title to the property

    the party that used a no warranty deed (quit claim) is free from any warranty of transferring a clear title to the grantor as the grantees that utilized a warranty deed are. So yes, she did limit her liability for that matter by using a quit claim deed

  7. #7
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    Default Re: Types of Warranty Deeds

    Quote Quoting jk
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    Each party that recieved the property via warranty deed would also have an action against the grantor for title to the property as that is what you are warranting when using a warranty deed.

    You should file a quiet title action to clear up any of the claims others may have. The result (as long as it is found in your favor) would be a clear title to the property

    the party that used a no warranty deed (quit claim) is free from any warranty of transferring a clear title to the grantor as the grantees that utilized a warranty deed are. So yes, she did limit her liability for that matter by using a quit claim deed
    So even though the document the current owners signed is a warranty deed the verbiage added to the blanks ("sold as is") turns it into a quit claim deed? I was never sure if "as is without warranty" referred to the deed or the condition of the house itself. But that does make some sense.

    I have a fairly good grasp on our course of action through research and the attorneys we have visited. I'm just trying to get an idea of their possible avenues. In a perfect world they would spare us the expense of a quiet title action and just give us back the house. It's a pipe dream i know but just something that might be worth considering. As it stands now they will be out around 50k so i don't expect them to go away quietly. If you are correct in their deed being quit claim(at least what i think you implied anyway) ,they are more screwed than I initially believed.

    Thanks for the insight. It was a great help.

  8. #8
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    Default Re: Types of Warranty Deeds

    The "as is" may relate to the condition of the property, as opposed to its title history. When he's available to do so, your lawyer can explain the deed to you.

  9. #9
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    Default Re: Types of Warranty Deeds

    Quote Quoting Mr. Knowitall
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    The "as is" may relate to the condition of the property, as opposed to its title history. When he's available to do so, your lawyer can explain the deed to you.
    I suppose........



    obviously a bit odd to state that on a deed but I suppose it could.

  10. #10
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    Default Re: Types of Warranty Deeds

    Quote Quoting Mr. Knowitall
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    The "as is" may relate to the condition of the property, as opposed to its title history. When he's available to do so, your lawyer can explain the deed to you.
    Yeah I'm sure it is open to interpretation. They are all clearly titled "warranty deed" but the added language in the final deed puzzled me. We never really focused on the other deeds in our consultations. it was just something i was curious about. I would not have thought that verbiage could change the TYPE of deed it was(assuming the above poster is correct).

    Thanks for the reply.

    - - - Updated - - -

    Quote Quoting jk
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    I suppose........



    obviously a bit odd to state that on a deed but I suppose it could.
    Would it maybe have given them a deed without warranty? Or at least that be the goal?

    The Deed Without Warranty

    Texas law recognizes another form of deed which is neither a Quitclaim Deed nor a Warranty Deed, but rather something in between. Like a Warranty Deed, a Deed Without Warranty uses the "grant, sell and convey" language to establish title in the buyer. Like a Quitclaim Deed, though, a Deed Without Warranty makes no warranties or covenants of title, so the seller has no liability for title defects. A Deed Without Warranty will rarely be appropriate in a sale transaction; however, because it offers much greater protection to the buyer without any additional risk to the seller it should be considered as an alternative whenever a Quitclaim Deed might otherwise be used.

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