Special Warranty Deed With Vendor's Lien (Recorded 2026

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  1. Click ‘Get Form’ to open it in the editor.
  2. Begin by entering the date of the deed at the top of the form. Ensure accuracy as this establishes the official record date.
  3. Fill in the Grantor's name and mailing address. This identifies who is transferring ownership.
  4. Next, input the Grantee's name and mailing address. This indicates who is receiving ownership of the property.
  5. Specify the consideration amount, which includes cash and any notes payable. This section outlines what is being exchanged for the property.
  6. Detail the property description, including acreage and any improvements. Attach an Exhibit ‘A’ if necessary for clarity.
  7. Include any reservations from conveyance, such as mineral rights or water rights, ensuring all relevant legal stipulations are noted.
  8. Finally, have both parties sign and date where indicated, ensuring that notarization is completed to validate the document.

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A lien on real property in Texas is evidence of a debt, and payment of that debt extinguishes, or releases, the lien. When the underlying debt is paid, the lien holder prepares, signs and certifies a written release that is recorded with the county clerk in the county where the property is located.
The lien that is reserved by the Seller is known as a Vendors Lien. A Warranty Deed with Vendors Lien transfers title to the real estate property but the property is subjected to a lien for the unpaid purchase price. Again, it is part of a seller finance package of documents.
The special warranty deed protects the bank because they are providing zero protection for the period of time before it seized ownership of the property. The new buyer has no guarantee that the title is free-and-clear since it was very recently owned by someone who failed to pay their mortgage.
A warranty deed does not actually prove ownership of a property. The best way to establish ownership is through a title search, which examines public records to determine if any liens, third-party claims, or other issues could affect ownership.
Using a Special Warranty Deed in Texas, the seller who currently owns the property guarantees they have not faced any title issues during the time of his or her ownership of the property. Good to know: The warranty in a Warranty Deed is a warranty of title, and not a warranty of property condition.

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People also ask

The Release of Lien must be recorded with the County Recorders Office to release a vendors lien against the property. The Release would be filed after (i) the purchaser has paid the balance of the purchase price and (ii) the promissory notes securing the balance have been canceled by the vendor (seller).
Through the recording of a warranty deed, the seller is providing assurances to the buyer should anything unexpected happen. If a third-party filed a claim against the property, even if the seller was unaware, the seller is legally liable to remedy the issue.
In Texas when a vendor sells property and there is unpaid purchase price, a vendors lien arises against the property to secure the payment of the unpaid purchase price. An express ven- dors lien can be reserved in the deed and/or in the real estate lien note.

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