When people buy real estate in Texas, they often assume that once a deed is signed and money changes hands, ownership is secure. In reality, Texas law places enormous importance on recording documents properly. Failing to do so can allow someone else to claim priority over your property rights—even if you paid fair market value.

Understanding how the Texas Recording Act works is essential for homeowners, investors, lenders, and business owners alike.

This article explains how Texas recording laws operate, what happens when documents are not recorded, and how courts resolve competing claims to real property.

What Does It Mean to “Record” a Document in Texas?

“Recording” means filing a real estate document with the county clerk in the county where the property is located. Once recorded, the document becomes part of the public record.

Common documents that should be recorded include:

• Warranty deeds and special warranty deeds
• Deeds of trust (mortgages)
• Releases of liens
• Assignments
• Easements
• Affidavits affecting title

Recording serves two main purposes:

1. It preserves evidence of ownership
2. It gives legal notice to the public

Without recording, your ownership rights may be vulnerable.

The Texas Recording Act: Property Code § 13.001

Texas follows a “notice” recording system, governed primarily by Texas Property Code § 13.001.

The statute provides:

“A conveyance of real property…is void as to a creditor or to a subsequent purchaser for valuable consideration without notice unless the instrument has been acknowledged, sworn to, or proved and filed for record.”
(Tex. Prop. Code § 13.001(a))

In simple terms:

If you do not record your deed, and someone else later buys the same property without knowing about your interest, the later buyer may win.

Texas Is a “Notice” State — What That Means

States generally follow three recording systems:

• Race
• Notice
• Race-Notice

Texas is a notice state.

Under this system, a later purchaser wins if:

1. They paid value, and
2. They had no notice of your prior claim

Recording your document gives “constructive notice” to the world. Once recorded, everyone is legally treated as if they knew about it—even if they never checked the records.

Constructive Notice Under Texas Law

Texas law recognizes “constructive notice” through recorded documents.

Property Code § 13.002 states:

“An instrument that is properly recorded…is notice to all persons of the existence of the instrument.”
(Tex. Prop. Code § 13.002)

This means:

Once your deed is recorded, no later buyer can claim ignorance.

Failure to record leaves you exposed.

What Happens If You Don’t Record Your Deed?

Failing to record can create serious legal problems.

Example Scenario

1. Seller conveys property to Buyer A
2. Buyer A does not record
3. Seller later conveys same property to Buyer B
4. Buyer B records immediately
5. Buyer B had no knowledge of Buyer A

Under Texas law, Buyer B may prevail.

Buyer A may lose the property despite paying first.

Actual Notice vs. Constructive Notice

Texas courts recognize two main types of notice:

1. Actual Notice

A person actually knows about your claim.

Examples:

• You told them directly
• They saw your contract
• They reviewed your unrecorded deed

If a buyer has actual notice, they usually cannot claim priority.

2. Constructive Notice

Notice created by recording in public records.

Once recorded, no proof of knowledge is required.

Chain of Title and Recording Problems

Recording alone is not enough. The document must appear in the proper chain of title.

A document may fail to give notice if:

• It is misindexed
• It contains major errors
• It references the wrong parties
• It is recorded outside the chain

Texas courts have repeatedly held that documents outside the chain of title may not provide constructive notice.

This is why technical errors in deeds can create expensive title disputes.

Recording Requirements Under Texas Law

To be recordable, most documents must be:

• Properly acknowledged before a notary
• Signed by the grantor
• Contain adequate legal descriptions
• Meet formatting requirements

Property Code § 12.001 governs many of these rules.

Improperly executed documents may be rejected or later challenged.

Why Lenders Care So Much About Recording

Lenders rely heavily on recording laws.

A deed of trust that is not properly recorded may lose priority to:

• Later liens
• Judgment creditors
• Bankruptcy trustees

This is why mortgage lenders insist on title insurance and strict closing procedures.

Recording and Judgment Liens

Judgment liens arise when an abstract of judgment is recorded.

Property Code § 52.001 provides that recording an abstract creates a lien on real property in the county.

If a deed is unrecorded, a later judgment lien may attach ahead of the true owner’s interest.

This is a common and costly problem in collection cases.

Recording Errors and Title Insurance

Many recording problems are discovered only when:

• Property is sold
• Property is refinanced
• Probate is opened
• A lawsuit is filed

Title insurance often covers recording defects, but not always.

Some issues fall outside coverage and must be resolved through litigation.

Common Disputes Involving Recording Failures

In my practice, recording disputes frequently arise in:

• Divorce property divisions
• Probate estates
• Investor transactions
• Family conveyances
• Informal transfers
• Owner-financed deals

Informal “handshake” property transfers are especially risky.

How Courts Resolve Competing Claims

When disputes arise, courts examine:

• Recording dates
• Notice
• Good faith
• Chain of title
• Document validity

Texas courts generally favor the purchaser who:

• Paid value
• Acted in good faith
• Properly recorded
• Lacked notice

Documentation and timing are critical.

Practical Tips for Texas Property Owners

To protect your rights:

1. Record immediately after closing
2. Verify county indexing
3. Keep certified copies
4. Review title reports carefully
5. Correct errors quickly
6. Avoid informal transfers

Delays and shortcuts create legal risk.

When to Contact a Texas Real Estate Attorney

You should consult an attorney if:

• A deed was never recorded
• A document was rejected
• Competing claims exist
• Title is clouded
• A lender refuses to close
• Probate involves real property

Early legal review can prevent costly litigation.

Final Thoughts

Texas recording laws reward diligence and punish inattention.

Under the Texas Property Code, ownership is not protected by signatures alone. It is protected by proper recording, accurate documentation, and timely filing.

Whether you are buying, selling, inheriting, or financing property, understanding these rules is essential to safeguarding your investment.

If you have questions about recording issues or property disputes, consulting a qualified Texas attorney can help you avoid expensive mistakes.

At David C. Barsalou, Attorney at Law, PLLC, we help clients navigate business, family, tax, estate planning, and real estate matters ranging from document drafting to litigation with clarity and confidence. If you’d like guidance on your situation, schedule a consultation today. Call us at (713) 397-4678, email barsalou.law@gmail.com, or reach us through our Contact Page. We’re here to help you take the next step.