Texas House Bill HB3320

Texas 2021 - 87th Regular

Caption

Relating to the effect of recording a quitclaim deed.

Impact

The implementation of HB 3320 is expected to impact property law by offering more predictable outcomes for subsequent purchasers and creditors. The amendment would centralize the rules governing quitclaim deeds, meaning that existing disputes regarding these deeds would be governed under the updated law only if the deeds were recorded after the bill's effective date. This effectively creates a distinction between older deeds and those recorded post-enactment, which could reduce litigation over property interests and reinforce the importance of timely recording in real estate transactions.

Summary

House Bill 3320 addresses the legal implications of recording a quitclaim deed in Texas. Specifically, the bill introduces a new section to Chapter 13 of the Property Code, which clarifies the effect of such deeds after a specified period. It states that after the fourth anniversary of the date a quitclaim deed is recorded, it no longer affects the interpretation of good faith for subsequent purchasers or creditors, nor does it serve as notice of any unrecorded conveyance or encumbrance on the property in question. This change aims to provide clarity and protect the interests of subsequent parties involved in real estate transactions.

Contention

While the bill seems straightforward, it has generated discussions regarding the balance between protecting property rights and ensuring the rightful claims are acknowledged. Some stakeholders might express concerns that this could disadvantage those who hold unrecorded claims, as the recording of a quitclaim deed now serves to protect subsequent purchasers indiscriminately after four years. Though the impact of unrecorded claims diminishes, advocates for property rights may argue that this creates a risk for individuals holding legitimate interests that are not formally documented, thereby emphasizing the importance of recording practices.