Texas Places Four Year Statute of Limitations on Recorded Quitclaim Deeds

The Texas legislature recently passed a bill, Senate Bill 885 (SB 885), which will create a statute of limitations for recorded quitclaim deeds for real property.  Specifically, pursuant to SB 885, a quitclaim deed that was recorded more than four years prior will not affect the good faith protection of a subsequent purchaser or creditor, nor will the quitclaim deed serve as notice to a subsequent purchaser or creditor “of any unrecorded conveyance of, transfer of, or encumbrance on the real property” after that time.  

SB 855’s sponsor indicated that the bill intends to “create certainty” by providing a statute of limitations.  The bill also amends the provisions regarding adverse possession claims to provide that it does not apply to a claim based on a quitclaim deed.

SB 885 will take effect on September 1, 2021, and will apply to quitclaim deeds recorded on or after that date.