All Texas Deeds Contain Implied Covenants/Warranties Unless Expressly Disclaimed

San Antonio Texas Real Estate Attorney Trey Wilson wrote:

In previous posts on this blog, I have explained the difference among the most common types of deeds used in Texas. 

While some instruments (typically General Warranty Deeds) expressly provide certain warranties about the marketability of the Grantor's title, ALL deeds and other conveyance instruments that contain the words "grant" or "convey" are also deemed by Section 5.023, Texas Property Code, to contain  implied covenants by the grantor to the grantee.

By law, it is implied by he Grantor that: (i) the grantor has not conveyed any interest in the property to any other person (other than the grantee); and (ii) that, at the time of execution of the conveyance instrument, the property is free from encumbrances (i.e. taxes, liens, assessments, etc.). 

Most importantly, these implied covenants, by law,  may "be the basis for a lawsuit as if [such covenant] had been expressed in the conveyance."  That's right!  These implied covenants -- even if never expressly made or stated by the grantor -- give rise to liability on the Grantor's part if they turn out to be untrue. See Tex.Prop. Code Section 5.023(b).