transfer of deed in texas

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Real Estate Deed and Title Transfers in Texas: What You Need to Know

Michael Farah

January 25, 2021

For many people, owning property — particularly your own home — is a major part of the proverbial “American Dream.”

In the past, only the very wealthy were able to become landowners. But today, home and property ownership are possible for more people than ever. And because of the nature of property ownership, and the fact that many people can now own homes and property, understanding the real estate title transfer process is vital. The expert real estate attorneys at The Farah Law Firm can help you understand titles, deeds, and how real estate title transfers work in Texas.

What is the Difference Between a Real Estate Title and a Deed?

The terms “deed” and “title” are not synonymous. A title conveys the idea of legal ownership of a Texas property, as well as the legal rights that come with that ownership. A title is not a physical document, but rather a concept that is conveyed through a property deed — which is an official document that shows your legal ownership of a property. If you have a valid Texas property deed, then you are entitled to all the rights that come with it.

Real Estate Titles in Texas

As a legal property owner in Texas, your title grants you:

Right of possession: As the legal property owner, you have the right to claim ownership of the property and anything on it. It is important to note, however, that it is your responsibility find out if your title includes water and mineral rights.
Right of control: You can use the property any way you please, so long as it is lawful and does not conflict with zoning restrictions or the rules of a homeowner’s association.
Right of enjoyment: You can enjoy the use of your property in any manner that is considered lawful.
Right of exclusion: As the legal owner, you have the right to choose whom you allow on your property. However, if your property has some type of utility or access easement (the legal right to use or access a property without having ownership of it), the owner of the easement has the right to access the property. They are required, though, to abide by the legal terms of the easement.
Right of disposition: You can transfer ownership either permanently or temporarily whenever you want, as long as there are no liens or loans against the property.

Real Estate Deeds in Texas

You can only transfer a title in Texas with a deed transfer. Any time a property is transferred from one owner to another, the deed — and thereby the title — changes hands.

A Texas real estate deed must contain the following in order to be considered legal and enforceable:

Identities of both the grantee (buyer/recipient) and the grantor (seller)
Expression of the grantor’s intent to transfer the property to the grantee
A legal and accurate description of the property and any rights associated with it
The grantor’s signature

Multiple types of deeds exist for various needs, including:

Transfer on Death Deed: Allows property to go to a new owner after the death of the prior owner without having to first go through probate.
Warranty Deed: Guarantees the quality and marketability of the title. It is proof that the seller owns the land and has the right to see to the grantee.
Deed of Trust: The deed of trust is like a mortgage. A trustee receives the title and hols the property as security for a loan. Once the debt is paid, the title is transferred back to the borrower. The trustee is only allowed to sell off the property if the borrower defaults on their loan.
General Warranty Deed: Guarantees that the neither the seller nor anyone else has done any damage to the property.
Quitclaim Deed: When this deed is signed, the grantor surrenders all rights they have to the property, and they have no responsibility to the grantee.
Special Warranty Deed: A special or limited warranty deed is proof that the current owner has done nothing to damage the property or to adversely affect the title. It does not make the grantor liable for title defects caused by previous or fraudulent owners.

Texas Real Estate Deed and Title Transfer Process

The transfer of real estate in the United States is tracked and recorded. The documents are filed at the county recorder’s office and are part of public record. If you intend to buy or sell property in Texas, you need to update and file the official documents so that they reflect the transfer. Failure to do so can result in the invalidation of the property transfer.

A deed transfer needs to take place when:

You intend to sell a property
If you or someone else is removed from the title
A name on the title needs to be changed

You cannot transfer a title via word of mouth. It must be done in writing and the deed needs to be notarized. Once that is done, you will file the deed with the county recorder’s office in the county in which the property is located.

Engaging the services of a real estate attorney to help you with the deed and title transfer process will ensure that you are legally protected in the buying or selling of your property.

Turn to The Farah Law Firm for Your Deed Transfer

The real estate attorneys at The Farah Law Firm can help you navigate the deed transfer process and ensure that you are filing the correct type of deed. We offer 24-hour turnaround time for our deed services in all North Texas counties, at a flat fee of $375 for most types of deeds. In many cases, we can even provide same-day deed preparation. And it can all be done online.

Contact our office today to learn more about our residential and commercial deed transfer services.

Answering The Call

Getting in touch with a real estate lawyer from Farah Law Firm is the first step in giving you the asset protection you need. Don’t discover the value of such services after the fact.

Warren & Migliaccio, L.L.P.

Texas Family, Estate and Debt Relief Attorneys

Transfer on Death Deed Texas: A Comprehensive Guide

Table of Contents

Once you’ve gotten your house, your business, or maybe a ranch established the way you want it, you hate to think of it being divvied up by random relatives, assorted creditors, or worse, the state, coming in to collect bills you didn’t even know you had. As an attorney, I’ve seen the spouses of former clients sobbing in probate courts. “This isn’t what he wanted!” But too late, the property is taken before the heirs even know what happened.

A Transfer on Death Deed Texas, or TOD, is a way of passing property to loved ones without going through probate. This legal document lets you retain control of your property during your life, and be certain the property goes directly to whomever you choose as your heir and beneficiary. A Transfer on Death Deed in Texas avoids the probate process, keeps your property where you want it, and gives everyone peace of mind during your lifetime.

Understanding Transfer on Death Deed in Texas

A Transfer on Death Deed (TODD) is an estate planning tool that lets you transfer real estate after death without going through probate in Texas. It’s a straightforward way to make sure your property goes to the people you choose.

The Texas Real Property Transfer on Death Act made it legal in 2015 for homeowners and landowners to pass their properties through transfer on death deeds. Now, Texans can easily leave behind homes or land without a will.

Legal Basis of TOD Deed

Chapter 114 of the Texas Estates Code contains all the rules and guidelines for making a legal transfer on death deed (TODD) in Texas. It covers everything needed to ensure your TODD is valid.

For a TODD to hold up legally, it must follow the guidelines in the Texas Estates Code. This means it must be signed, notarized, and filed with the county clerk’s office before the property owner passes away.

Purpose and Benefits of TOD Deed

People use TODDs to avoid probate for their real estate. Probate can be a long and costly court process. Transfer on death deeds let you skip it altogether for the property in the deed.

TODDs also give you more control over what happens to your real estate. You can choose exactly who you want to inherit it, and name backup beneficiaries. You can change your mind and update the deed anytime before your death.

Requirements for a Valid TOD Deed in Texas

For a transfer on death deed to be valid in Texas, it must meet certain requirements. First, it must be in writing – verbal agreements or handshake deals are not sufficient.

The deed must contain the legal description of the property being transferred. This usually means the address and the lot or parcel numbers. Vague descriptions like “my house” or “the ranch” won’t suffice.

Signature and Recording Requirements

The TODD must be signed by the property owner in front of a notary public. If the property is co-owned by a married couple or other joint owners, all owners must sign the deed.

After you sign and notarize the transfer on death deed, you must record it with the county clerk’s office where the property is located. If you don’t record it correctly, the deed won’t be valid.

Process of Creating a TOD Deed in Texas

Creating a transfer on death deed in Texas is a straightforward process, but you must do it correctly. The first step is to obtain the appropriate form – you can find TODD forms in the Texas Transfer Toolkit or from legal aid services.

Once you have the form, fill it out completely and double-check that all the information is accurate. Be sure to include the full legal description of the property and the names of your chosen beneficiaries.

Signing and Filing the Deed

When the form is filled out, sign it in the presence of a notary. Notaries are available at most banks, law offices, and some shipping stores. Bring a valid photo ID with you.

After the deed is notarized, take it to the recorder’s office in the county where the property is located and file it. There will be a small filing fee, usually around $30. Once it’s filed, the deed is officially recorded and will transfer the property to your beneficiaries upon your death.

Role of Beneficiaries in TOD Deeds

A key part of a transfer on death deed is naming your beneficiaries – the people who will inherit the property. You can choose one person, multiple people, or even an organization like a charity.

It’s wise to name at least one primary beneficiary and one alternate or contingent beneficiary. That way, if something happens to your first choice, the property can still pass to someone you trust.

Rights and Responsibilities of Beneficiaries

The beneficiaries you name in a TODD have no rights to the property while you’re alive. You retain full control and can sell it, rent it out, take out a mortgage, or do anything else you want with it. The deed only takes effect after your death.

After you pass away, the beneficiaries can take ownership of the property by filing an affidavit of death with the county clerk. They’ll need a copy of your death certificate to do this. Once the affidavit is filed, the property is officially transferred to the beneficiaries without going through probate court.

Comparing TOD Deeds with Other Estate Planning Tools

In Texas, transfer on death deeds are one way to pass down property. You might also consider using a will, setting up a living trust, or creating life estate deeds like lady bird deed , although be careful with a lady bird deed .

One advantage of TODDs over wills is that they don’t have to go through probate. Property transferred by a will can get tied up in court for months or even years, but with a transfer on death deed, the beneficiaries can take ownership almost immediately.

TODDs vs. Life Estate Deeds

TODDs are similar to life estate deeds in some ways – both let you name beneficiaries to inherit the property after your death. But with a life estate deed, you give up some control over the property during your lifetime.

With a TODD, you keep full control until your death. You can revoke the deed anytime, sell the property, or do anything else with it. That flexibility is one reason many people prefer transfer on death deeds in Texas.

Potential Pitfalls and Limitations of TOD Deeds

While transfer on death deeds can be a useful tool, they’re not right for every situation. One potential issue is that TODDs don’t override claims against your estate, like Medicaid estate recovery .

If you received Medicaid benefits during your life, the state may have a claim against your estate after death. A TODD won’t prevent your property from being used to repay those expenses if your estate doesn’t have enough other assets.

Tax Implications and Creditor Claims

Don’t forget about the tax implications for your beneficiaries. If they decide to sell property transferred by a TODD, they might face capital gains taxes. Talking to a financial advisor or attorney can help clarify any potential tax consequences.

TODDs also don’t protect the property from creditor claims against the beneficiaries. If your beneficiary has significant debt or gets sued, the inherited property could be at risk. In some cases, a living trust or other tool may offer more asset protection.

Special Considerations for Joint Owners and Community Property

If you own property with someone else, like a spouse or business partner, TODDs work a bit differently. In Texas, jointly owned property can be held as separate property or community property.

With separate property, each owner can transfer their own interest with a TODD. But with community property, both spouses need to sign the deed – one spouse can’t transfer away the other’s interest.

Married Couples and TODDs

For married couples, it’s usually best to create a joint TODD that names the same beneficiaries for both spouses’ interests. That way, the whole property can transfer smoothly to the chosen heirs.

If each spouse names different beneficiaries in separate TODDs, it can create conflict and confusion after their deaths. Partitioning or even selling the property to split the interests might be a significant hassle for the beneficiaries.

Call (888) 584-9614 or click here to submit a consultation request form now.

Get help now, recording and filing requirements for tod deeds.

To make a transfer on death deed official in Texas, you must record it with the county clerk’s office where the property is located. This involves taking the signed and notarized deed to the clerk’s office and paying a small filing fee.

The filing fee varies by county but is usually around $30. Some counties have different fees for the first page and additional pages, so check with your local clerk’s office for the exact amount.

Importance of Proper Recording

Recording the TODD is crucial – if it’s not properly recorded before your death, it won’t be valid. The beneficiaries can only take ownership if the deed is in the county’s official property records.

After you record the deed, keep a copy with your other important papers, like your will and power of attorney. Let your beneficiaries know where to find it, so they can easily handle the property transfer when the time comes.

Impact of Owner’s Death on Property Transfer

The purpose of a transfer on death deed is to quickly pass property to your beneficiaries after you die. Once the TODD is recorded, your beneficiaries simply need to file some basic paperwork to take ownership.

When you die, those who inherit from you must submit both an affidavit of death and your death certificate to the county clerk’s office. This documentation verifies your passing and puts the deed into effect.

Timing and Process for Beneficiaries

Once the affidavit and death certificate are filed, the property automatically transfers to the beneficiaries. They don’t have to go through probate court or deal with complex legal proceedings.

The exact timing depends on how quickly the beneficiaries file the paperwork, but it’s usually a matter of weeks rather than months. The property passes directly to them, and they can take possession right away.

Using TOD Deeds for Motor Vehicles

In Texas, you can use a transfer on death deed not just for real estate but also for vehicles like cars, trucks, and motorcycles. The law makes it easy to pass these items directly to your heirs.

The process is similar to real estate TODDs – you fill out a form naming your chosen beneficiaries and file it with the Texas Department of Motor Vehicles (DMV). The form is called the “Beneficiary Designation for a Motor Vehicle” and it’s available on the DMV website .

Differences from Real Estate TODDs

One key difference is that motor vehicle TODDs don’t have to be notarized. You just need to sign the form and mail it or take it to your local DMV office.

Another difference is that the beneficiaries don’t have to file an affidavit of death to take ownership of the vehicle. They just need to present a copy of your death certificate and fill out a new title application to put the vehicle in their name.

Key Takeaway:

A Transfer on Death Deed (TODD) lets you transfer real estate without probate. Since 2015, Texas law has allowed TODDs under Chapter 114 of the Texas Estates Code. To be valid, a TODD must be signed, notarized, and filed with the county clerk before death.

FAQs in Relation to Transfer on Death Deed Texas

What is the problem with transfer on death deeds in texas.

The main issue is that TOD Deeds might not protect against Medicaid estate recovery. They can also lead to disputes if improperly drafted.

How much does it cost to transfer on a death deed in Texas?

The filing fee varies by county but usually ranges from $25 to $50. Legal fees could add more.

What are the disadvantages of a transfer on death deed?

TOD Deeds don’t avoid creditors, tax issues may arise, and they might conflict with other estate plans like trusts or wills.

How do I file a transfer on death deed in Texas?

You need to complete the form accurately and record it at your local county clerk’s office. Make sure it’s properly recorded for validity.

Simplify Estate Planning with a Transfer on Death Deed – Contact Us

Transfer on Death Deed Texas – who knew such a simple document could make such a big impact? By now, you’ve seen how this powerful tool can help you avoid probate, maintain control over your property, and ensure a smooth transition for your loved ones. It’s like having a superhero cape for your estate planning needs. The process is so straightforward that you’ll wonder why you didn’t do it sooner. Whether you’re a Texan born and raised or just call the Lone Star State home, a Transfer on Death Deed is definitely worth considering. In the end, when it comes to protecting your legacy and your family’s future, every little bit helps.

For more information, visit our website . You’ll find great resources there. Ready to start or talk to an attorney? Call our law office now at (888) 584-9614 or contact us online to schedule a consultation.

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Schedule a free consultation, if you need to speak with an attorney at warren & migliaccio, l.l.p. submit our contact form below or call (888) 584-9614 to schedule a free consultation..

Christopher Migliaccio is an attorney and a Co-Founding Partner of the law firm of Warren & Migliaccio, L.L.P. Chris is a native of New Jersey and landed in Texas after graduating from the Thomas M. Cooley School of Law in Lansing, Michigan. Chris has experience with personal bankruptcy, estate planning, family law, divorce, child custody, debt relief lawsuits, and personal injury. If you have any questions about this article, you can contact Chris by clicking here.

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Are you selling your house and need to transfer ownership? Or is there any other life circumstance where you need to put your property into the hands of another person? If so, you will need to transfer your real estate deed.

A deed is a written document that conveys legal and equitable title to real property. A deed will list the old owner, known as the “seller” or “grantor”, and the new owner, known as the “buyer” or “grantee”. While there are many reasons to transfer deeds, you’ll generally need to do so if someone’s name is removed or changed on the property title. Transfers of real property must be in writing and notarized. Deeds should be recorded in the county where the property is located. To ensure a legal change to the property title, you’ll want the services of an attorney. A qualified attorney will prepare and file the real estate transfer deed. Be prepared to provide basic information about both the property in question and the individuals who need to be listed on the title.

The following are several types of deeds used for the transfer or real property in Texas:

Warranty Deed

A warranty deed is the most common type of deed used in most purchase and sale transactions. It offers the best protection for the grantee because it guarantees that the title is good and marketable. In most land sales, the buyer expects the seller to convey valid, ‘clean’ title. This is also especially important to the buyer’s lender. The seller warrants to the buyer that the seller actually owns the land and has the right to sell it. Such a warranty is called a “warranty of title,” and it is conveyed in a Warranty Deed. There are two kinds of Warranty Deeds: the Special Warranty Deed, and the General Warranty Deed.

General Warranty Deed

When a seller makes a general warranty, the seller warrants that not only has the seller not personally done anything to adversely affect the title being conveyed, but neither has anyone else who has ever owned the property. If the buyer’s title is lost or impaired because of a previously unknown defect in the title, the seller will be liable to the buyer for the loss even if the seller had no reason to know of the forgery.

Special Warranty Deed

Transfer of property may also be done through a special or limited warranty deed or quitclaim deed. When a seller executes a Special Warranty Deed, the seller warrants only that he has not personally done anything to adversely affect the title being conveyed. However, if the title is impaired because someone else forged a prior owner’s signature on a deed, or sold the property in violation of a court order, the seller would not be liable because the seller did not personally cause the title defect. A special or limited warranty deed gives the grantee greater protection than a quitclaim deed and less protection than a full or general warranty deed.

Quitclaim Deed

When a grantor signs a Quitclaim Deed, they surrender whatever rights they have in the property. They walk away and have no responsibility to the purchaser. Quitclaim Deeds can be useful in clearing title in limited circumstances, such as when there is a question about whether a particular heir has a claim to the property, or where a person may have acquired title by adverse possession. In most cases, however, it is preferable to use another kind of deed.

Deed of Trust

A deed of trust or trust deed is similar to a mortgage. Title is transferred to a trustee, which is usually a trust or title company that holds the real property as security for the borrower’s loan. At the time the loan is paid in full, title is transferred to the borrower. The only power that the trustee has is the power of sale if the borrower defaults. The trustee can then sell the property to pay off the lender at a foreclosure sale auction.

Transfer on Death Deed

Information on Transfer on Death Deeds can be found here .

We have years of experience within the real estate industry and we know the intricacies of title transfer processes. If you need assistance with these matters, contact us now .

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Home » Texas

Texas Deed Forms for Real Estate Transfers

Jeramie Fortenberry

Attorney (J.D., LL.M.)

Last updated May 09, 2023

Table of Contents

Need to transfer Texas real estate?

Our deed creation software makes it easy. Just complete a user-friendly interview and get a customized deed that is attorney-designed to meet Texas recording requirements.

Get Your Deed Today

A deed is a written instrument used to transfer real estate. A deed allows the current owner (the grantor ) to transfer Texas real estate to a new owner (the grantee ). The owner’s goals determine which type of deed is best for a specific transfer.

What types of deeds are used to transfer Texas real estate?

Texas recognizes four types of deeds that an owner can use to transfer real estate during the owner’s lifetime. Each type of deed is defined by the warranty of title that it provides (or does not provide).

Texas Quitclaim Deed Form

A Texas quitclaim deed form releases the current owner’s interest in property with no warranty. The new owner receives whatever ownership interest (if any) the current owner can legally transfer. The new owner bears the risk that there may be problems with the property’s title.

Texas Deed Without Warranty Form

A Texas deed without warranty form transfers real estate with no warranty. A deed without warranty works similarly to a quitclaim deed, but Texas title insurance companies prefer deeds without warranty. So, a deed without warranty is often the better option for an owner who wants a deed that provides no warranty.

Texas Special Warranty Deed Form

A Texas special warranty deed form transfers real estate with a limited warranty—sometimes called a special warranty . A limited warranty covers the time during which the person signing the special warranty deed owned the property. The new owner assumes the risk that the property’s title may have issues that arose before the current owner acquired the property.

Texas General Warranty Deed Form

A Texas warranty deed form transfers real estate with a complete warranty that covers the property’s entire history. 1 The current owner guarantees that there are no issues with the property’s title that the deed does not identify. Texas warranty deeds are sometimes called general warranty deeds because they provide a general warranty that is not limited to any specific time.

Questions about what Texas deed form is right for you?

Click the link below to use our guided interview. We’ll go over the options that are available in Texas and provide guidance on choosing the deed form that matches your goals.

What types of estate planning deeds are used in Texas?

Property owners can use estate-planning deeds to transfer ownership of real estate when the owner dies. There are three types of estate-planning deeds used in Texas. Each type of estate-planning deed is named after the probate avoidance feature it provides.

Transfer-on-Death (TOD) Deed Form

A Texas transfer-on-death deed form —or TOD deed —allows the owner to name a beneficiary to take ownership of real estate when the owner dies. 2 The owner keeps all of his or her rights in the property while still living.

Texas Life Estate Deed Form

A Texas life estate deed form creates two separate ownership interests in the real estate. One owner—called a life tenant —has the right to immediate possession of the property. The other owner—called the remainder beneficiary —holds the right to take possession of the property when the life tenant dies.

Texas Enhanced Life Estate Deed Form

A Texas enhanced life estate deed form —informally called a lady bird deed —is a special type of life estate deed. A lady bird deed gives the life tenant greater control over the property than a standard life estate deed. The enhanced control lets the life tenant sell or transfer the property—or change his or her mind about the Lady Bird deed—without the remainder beneficiary’s consent.

There can be overlap between the different Texas deed categories. For example, a lady bird deed could also be a quitclaim deed if it provides no warranty of title.

Need a Texas transfer-on-death deed?

In states that recognize them, transfer-on-death-deeds (sometimes called beneficiary deeds ) are popular probate avoidance tools. Our TOD deed creation software makes it easy to create one. Click the link below to get started.

Get a TOD Deed Today

What are the ways that multiple owners can hold title to Texas real estate?

There are several ways that multiple owners may acquire title to Texas real estate by deed. These forms of co-ownership usually turn on whether the co-owners have a right of survivorship —which means that a deceased co-owner’s interest automatically transfers to surviving co-owners. If co-owners own real estate without a right of survivorship, a deceased co-owner’s interest does not transfer to surviving co-owners. It instead becomes part of the deceased co-owners probate estate and passes to his or her heirs.

A right of survivorship is only possible when there is a human lifetime to determine when the right of survivorship takes effect. Business entities and trusts do not have a “lifetime,” so a right of survivorship is not possible when one or more of the co-owners is a business or trust.

The default rule in Texas is that jointly owned property does not include a right of survivorship. 3 But this is only a default rule. There are several ways joint owners can use Texas deeds and related documents to create a right of survivorship.

Joint Tenancy with Right of Survivorship

Owners who hold title as joint tenants with right of survivorship have a right of survivorship in the property. Upon one owner’s death, his or her interest automatically transfers to the surviving joint owner or owners.

Many states only require a short phrase in the deed to create a joint tenancy with right of survivorship. Texas law is different. New co-owners of Texas real estate must create a separate survivorship agreement if they want to own the property as joint tenants with right of survivorship. 4

Our deed creation software automatically includes any survivorship agreements needed to create a right of survivorship if the new owners intend to own the property with a right of survivorship.

Joint tenancy with right of survivorship is a useful tool when an owner wants the property to pass to the surviving joint owner. When a co-owner dies, transfer to the surviving co-owner is relatively simple and can often be accomplished outside of the probate process.

Joint tenancy with right of survivorship is very common in other states and is allowed by Texas law. However, some third parties—like lenders and title companies—are reluctant to recognize this co-ownership form for Texas real estate. Some title companies decline to insure title to Texas property owned in joint tenancy with right of survivorship. Lenders may also be uncomfortable with joint tenancy with right of survivorship language in the Texas loan documents. An owner who plans to mortgage Texas real estate should check with the lender before creating a joint tenancy with right of survivorship.

Tenancy in Common

Co-owners of Texas real estate who do not want a right of survivorship can own Texas real estate in a tenancy in common—also called a co-tenancy or a joint tenancy without right of survivorship . The co-owners are called tenants in common , and Texas’ default rule determines what happens when a tenant in common dies. Specifically, the deceased co-owner’s interest passes through probate to his or her heirs. The interest does not automatically pass to the surviving joint owner. 5

Tenancy in common is a good alternative for co-owners who want their interests in Texas real estate to pass to their heirs instead of the surviving joint owner. But tenancy in common has a downside: There is no right of survivorship, so the Texas probate process may be needed to transfer title to the deceased owner’s family.

Ownership as tenants in common can also be complicated by Texas community property law—which comes into play when a property owner is married. The effect of Texas’ community property system is that—in addition to the wording of the deed—actual ownership of a tenant-in-common interest depends on:

The marital status of the person listed on the deed;
Whether he or she acquired the property during the marriage; and
Whether any special circumstances change the characterization of the marital property from community to separate property. 6

What are the rules for spousal ownership of Texas real estate?

Texas has special rules when a property owner is married. Individuals who are married (or expect to be married in the future) should consider Texas’ spousal ownership rules when transferring or receiving ownership of Texas real estate.

Community Property

Texas is a community property state. With certain exceptions, Texas law presumes that any real estate interest a married person acquires during the marriage is jointly owned with his or her spouse as community property . 7 This is true even if the Texas deed only lists one spouse. Each spouse generally owns a one-half interest in the couple’s community property. 8

Real estate held as community property does not automatically include survivorship rights between the spouses. Instead, when a spouse dies, the deceased spouse’s one-half interest in the real estate passes according to the deceased spouse’s will or Texas intestacy law (i.e., the inheritance system that applies when a deceased person has no will). The surviving spouse continues to own his or her one-half interest in the couple’s community property.

Community Property with Right of Survivorship

Married spouses can ensure that a surviving spouse automatically receives title to real estate owned as community property by creating a community property survivorship agreement —which is an “agreement between spouses creating a right of survivorship in community property.” 9 A valid community property survivorship agreement entered into by spouses ensures that some or all of their community property—including real estate—becomes the surviving spouse’s property when the other spouse dies. 10

Our deed creation software includes a community property survivorship agreement when necessary to create a right of survivorship.

Homestead Property

Texas does not recognize dower or curtesy rights that require a non-owner spouse’s signature on a deed that transfers property owned solely by the other spouse. However, Texas law requires both spouses to sign a deed if the transferred real estate is the couple’s marital home—called the homestead . 11 A deed that transfers a Texas homestead must have both spouses’ signatures regardless of whether the homestead is owned as community property or is one spouse’s separate property.

Where are deeds filed in Texas?

A Texas deed must be recorded in the land records of the county where the property is located. 12 Each county has a county clerk responsible for keeping the county’s land records and receiving deeds filed for recording. 13

How much does it cost to file a Texas deed?

The county clerk charges a recording fee for recording a Texas deed. 14 Total recording fee amounts consist of several related fees, so the precise amount varies by county and by deed. 15 A typical recording fee amount is around $26.00 for the deed’s first page and $4.00 for each additional page.

Does Texas charge a transfer tax on real estate transfers?

Texas does not charge a transfer tax or deed tax for transferring Texas real estate or recording a deed that transfers title to a new owner.

Does Texas require any other form when recording a deed?

Texas does not require a cover page, transfer tax return, or other additional documents when recording a deed. Some deeds may need to be accompanied by one or more additional documents—such as a declaration of trust, power of attorney, or statement of authority—depending on the deed’s purpose.

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Our deed creation service makes it easy to prepare customized, state-specific deeds to Texas real estate. Just complete a user-friendly interview and get a customized deed that is attorney-designed to meet Texas recording requirements.

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Tex. Prop. Code § 5.022 .
Tex. Est. Code § 114.051 .
Tex. Est. Code § 101.002 .
Tex. Est. Code § 111.001 .
Tex. Est. Code § 101.002(a) .
Tex. Fam. Code § 3.003 .
Tex. Fam. Code § 3.002 .
Farmers Tex. Cnty. Mut. Ins. Co. v. Okelberry ex rel. Okelberry , 525 S.W.3d 786 (Tex. App. 2017) .
Tex. Est. Code § 112.001 .
Tex. Est. Code § 112.051 .
Tex. Fam. Code § 5.001 .
Tex. Prop. Code § 11.001 .
Tex. Prop. Code § 11.004 .
Tex. Prop. Code § 11.003(c) .
Tex. Loc. Gov’t Code §§ 118.011(a) ; 118.013 .

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Estate Planning

Understanding the Pros and Cons of Executing a Transfer on Death Deed in Texas

November 3, 2023

Introduction:

When planning for the future and the eventual transfer of your property, it's crucial to understand all the tools at your disposal under Texas law. One such tool is the Transfer on Death Deed (TODD), governed by Texas Estates Code Section 114.051. As a legal document, a TODD allows property owners to pass on their real estate to a beneficiary without the need for a will or probate. In this article, our seasoned Transfer on Death Deed lawyers in Texas will explore the pros and cons of executing a TODD, ensuring you make informed decisions about your estate planning.

What is a Transfer on Death Deed in Texas?

A Transfer on Death Deed is a legal document that allows individuals to name a beneficiary who will receive their property upon their death, without going through probate. This deed is revocable and does not take effect until the death of the owner, offering a streamlined approach to transferring property. Under Texas Estates Code Section 114.051 , the deed must be recorded before the death of the owner in the county where the property is located to be effective.

Pros of a Transfer on Death Deed:

1. Avoids Probate: One of the primary benefits of a TODD is that it allows the property to bypass the often lengthy and costly probate process, ensuring a quicker transfer to the beneficiary.

2. Retains Control: Until your passing, you retain full control over the property. You can sell, lease, or mortgage the property as you see fit without the beneficiary's consent.

3. Flexibility: If your circumstances change, you can revoke or amend the TODD without needing the beneficiary's agreement.

4. Simplicity: Executing a TODD is relatively straightforward and does not require the complex processes involved in creating and maintaining a trust.

5. Cost-Effective: By avoiding probate, you can potentially save significant money on court fees and legal costs.

Cons of a Transfer on Death Deed:

1. May Not Avoid Legal Challenges: Beneficiaries of the TODD or omitted heirs may still contest the deed, leading to legal complications.

2. No Medicaid Eligibility Protection: A TODD does not protect the property from being counted for Medicaid eligibility, which might affect long-term care planning (if this applies to you, then see our other article on how to plan for bypassing Medicaid Estate Recovery Program claims through a Ladybird Deed by Clicking Here );

3. No Contingencies: Unlike a will, a TODD does not allow for contingent beneficiaries if the primary beneficiary predeceases the owner.

4. Potential Family Conflicts: If not all family members or heirs are included as beneficiaries, it could lead to disputes and possible litigation.

5. Debts and Liens: The property transferred via a TODD is still subject to debts and liens against the estate, which may burden the beneficiary.

Conclusion:

Executing a Transfer on Death Deed in Texas can be a beneficial estate planning tool, but it's not without its potential drawbacks. Considering the nuances of Texas Estates Code Section 114.051, it's wise to consult with a knowledgeable Transfer on Death Deed lawyer who can offer personalized advice and ensure that your estate plan aligns with your wishes and legal requirements.

For comprehensive legal guidance and to explore whether a TODD is right for your estate plan, contact our experienced Texas probate attorney today. We are committed to navigating you through the complexities of estate planning with the dedication and expertise you deserve. Additionally, for comprehensive help with your complete estate plan, a TODD is the chief component of our Probate Avoidance Package , which addresses all your needs before and upon death. Please watch our video for a full estate planning consultation that includes prices at the end -- you can watch that video by Clicking Here as well.

Are you considering a Transfer on Death Deed for your property in Texas? Reach out to our expert Transfer on Death Deed lawyers for a consultation and secure your legacy with confidence. Just click "Contact Us" anywhere you see it on this page and we will be thrilled to hear from you :)

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Completing a Texas Transfer-on-Death Deed

Home » Articles » Completing a Texas Transfer-on-Death Deed

A transfer-on-death (TOD) deed, commonly known as a beneficiary deed, is an important tool in Texas estate planning . It allows you to transfer ownership of certain types of property upon your death to someone else without going through the probate process.

The TOD deed has become increasingly popular in recent years due to its simplicity and cost savings. In this blog post, we will discuss what a TOD deed is, the requirements for completing one, and why it’s such an invaluable tool for those who want to make sure their assets are distributed according to their wishes after their death.

What Are the Requirements of a Transfer-on-Death Deed?

The deed must be signed and dated by the owner of the property and must be witnessed by two people who are not related to the owner or the person to whom the property is being transferred. Additionally, it must be notarized by a notary public.

The deed must be filed with the county clerk in the county where the property is located, within 30 days of the owner’s death. If the deed is not filed within this time frame, it is void and the property will pass to the owner’s heirs according to Texas probate law .

Restrictions of a Transfer-on-Death Deed

Once filed, the deed becomes a legal document and cannot be revoked by the owner. However, if the owner sells or conveys the property before their death, then the deed is no longer valid and ownership of the property will pass to whomever they conveyed it to.

The person named as recipient in a Texas Transfer-on-Death Deed does not have any rights to the property while the owner is alive. If you are named as a recipient in someone’s Texas Transfer-on-Death Deed, make sure that you understand what this means and that you are comfortable with it before agreeing to it.

How to Complete a Texas Transfer-on-Death Deed

To complete a Texas Transfer-on-Death Deed, follow these steps:

1. Fill out the deed. Include the following information:

Your name and address
The name and address of the person or entity you are transferring the property to (the “beneficiary”)
A description of the property you are transferring
The date of the deed

2. Sign the deed in front of a notary public.

3. Give the deed to the beneficiary. You do not need to file it with the county clerk’s office.

4. Upon your death, the beneficiary must provide proof of your death and file the deed with the county clerk’s office in the county where the property is located.

Once the deed is filed, ownership of the property transfers to the beneficiary. The deed must be recorded with the county clerk in order for the transfer of ownership to be effective upon the owner’s death. If the property is subject to a mortgage or other lien, that debt must be paid off before the beneficiary can take ownership of the property free and clear.

What Property Can Be Transferred with a Transfer-on-Death Deed?

The property conveyed via a TODD can be either residential or commercial real estate, including but not limited to:

Single family homes
Condominiums
Vacant land
Rental property

Special Rules for Co-Owned Property in Texas

When two or more people own property together in Texas, there are certain rules that apply to the transfer of ownership upon the death of one of the owners. These rules are designed to protect the surviving owner or owners from having to go through a lengthy and expensive probate process in order to retain ownership of the property.

In order for a Transfer-on-Death Deed to be valid in Texas, it must meet all of the following requirements:

1. The deed must be in writing and signed by the owner or owners of the property.

2. The deed must be notarized by a licensed notary public.

3. The deed must be filed with the county clerk where the property is located.

4. The deed must contain the legal description of the property as well as the names and addresses of the transferee or transferees.

5. The deed must state that it is revocable at any time by the owner or owners prior to their death.

If you have any questions about whether a Transfer-on-Death Deed is right for your situation, you should consult with an experienced estate planning attorney in your area.

How to Name Beneficiaries on a Texas Transfer-on-Death Deed

If you own a home in Texas and want to name a beneficiary who will receive the property upon your death, you can do so by completing a Texas Transfer-on-Death Deed.

To complete a Texas Transfer-on-Death Deed, you will need the following information:

Your full name and address
The full name and address of the person you are naming as your beneficiary
Your signature

Once you have gathered this information, you can fill out the Texas Transfer-on-Death Deed form. This form is available online from the Texas Comptroller’s office. Once you have completed the form, you will need to have it notarized.

After the deed has been notarized, it should be recorded with the county clerk where the property is located. You will need to provide the clerk with a copy of the deed, as well as any recording fees that may be required. Once the deed has been recorded, it is effective immediately and does not need to be filed with your last will and testament.

How to Revoke or Cancel a Transfer-on-Death Deed

If you change your mind after completing a Texas Transfer-on-Death Deed, you can revoke or cancel the deed. To do so, you must notify the beneficiary in writing that you are revoking or cancelling the deed. You must also record a revocation or cancellation of the deed with the county clerk’s office where the original deed was recorded.

Pros and Cons of Using a Transfer-on-Death Deed

TOD deeds are an easy and inexpensive way to avoid probate, but there are some potential drawbacks to consider before using one.

1. Avoid Probate: When you use a TOD deed, your property will transfer to your beneficiary outside of probate, which can be a time-consuming and expensive process.

2. Flexibility: You can change the beneficiary of your TOD deed at any time prior to your death, simply by completing a new deed with the updated information.

3. Control: With a TOD deed, you retain control of your property during your lifetime. You can sell or mortgage the property as you see fit, and even revoke the deed entirely if you change your mind about using one.

1. Limited Scope: Not all types of property can be transferred using a TOD deed – only certain types of real property, such as land or a house. Personal property, such as cars or furniture, cannot be transferred using this method.

2. Possible challenges: If your beneficiaries are not in agreement about who should receive the property after your death, they may challenge the validity of the TOD deed in court. This could delay or even prevent the transfer of ownership from taking place

3. Possible tax implications: Depending on the value of your property, your beneficiary may be responsible for paying inheritance or estate taxes, which could reduce the amount they receive.

Completing a Texas Transfer-on-Death Deed is an easy way to ensure that your property will be passed on to your loved ones without the hassle of probate. While there are certain legal requirements, such as having two witnesses sign the deed and filing it with the county clerk’s office, none of these steps should take much time or money and should not deter you from taking advantage of this simple estate planning tool . With just a few simple steps, you can make sure that your legacy will live on in all those whom you love and cherish.

Do you need an Experienced Probate Attorney to help?

When a person dies, their assets are generally transferred to their beneficiaries through probate. Probate is the legal process of distributing a person’s assets after they die. If the deceased person had a valid will, the probate court will appoint an executor to carry out the instructions in the will. If the deceased person did not have a will, the probate court will appoint an administrator to distribute the assets according to state law.

The probate process can be complicated and time-consuming, especially if there is disagreement among the beneficiaries about how the assets should be divided. An experienced probate attorney can help you navigate the probate process and ensure that your rights are protected.

Our Houston Probate Attorneys provide a full range of probate services to our clients, including helping with disputes between heirs. Affordable rates, fixed fees, and payment plans are available. We provide step-by-step instructions, guidance, checklists, and more for completing the probate process. We have years of combined experience we can use to support and guide you with probate and estate matters. Call us today for a FREE attorney consultation .

Disclaimer

The content of this website is for informational purposes only and should not be construed as legal advice. The information presented may not apply to your situation and should not be acted upon without consulting a qualified probate attorney . We encourage you to seek the advice of a competent attorney with any legal questions you may have.

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Transfer on Death Deed: Answers to Commonly Asked Questions

5 Types of Deeds in Texas (and When to Use Them)

Table of Contents

Need to transfer ownership of physical property in the Houston, TX area?

Buying and selling real property is a complex process. There are all sorts of legal documents that need to be filed and hoops that need to be jumped through in order for the real estate transaction to be valid and legally binding.

One of those legal documents you need is a deed, and real estate deeds are often confused with the “title” of a property. In actuality, a deed is simply a physical legal document that transfers the title of a property – which is the concept of ownership and rights to the property – from the current owner (or the “grantor”) to the new one.

There are several types of deeds in Texas and we’ll walk you through their definitions and benefits, but it’s crucial to speak with a Houston real estate lawyer about your unique situation before deciding on which deed to use for your property transfer.

#1 General Warranty Deed

The simplest explanation of a general warranty deed is that it offers the most legal protection for the grantee when transferring ownership. That’s because, in this type of deed, the grantor is warranting (or guaranteeing) that they have a legal and equitable title and that there are no other claims to the property out there.

When general warranty deeds are used, if there happen to be title defects realized in the future—such as other legal claims to ownership or liens against the property—the grantor would be responsible for rectifying them.

When Are General Warranty Deeds Used?

A general warranty deed is actually the most commonly used in property ownership transfers in Texas. It’s the type of deed that’s preferred by homebuyers in standard home sales since it prevents the new owner from having to purchase title insurance through a title company.

#2 Special Warranty Deed

While a general warranty deed protects the buyer against all possible title defects, a special warranty deed offers a bit less protection for the grantee.

With this type of Texas deed (also known as a limited warranty deed—the grantor only guarantees that no title issues exist for the time period that they owned the property. They would not be liable for any defects that occurred prior to them taking ownership.

When Are Special Warranty Deeds Used?

In cases where the current owner isn’t comfortable with a general warranty, a special warranty deed can be used. However, buyers using these types of deeds in Texas should purchase title insurance through one of the many title companies in the state.

#3 Quitclaim Deed

The type of deed with the least protection for the grantee is undoubtedly the quitclaim deed. Quitclaim deeds make no guarantees at all regarding existing ownership claims or title defects, and simply allow the grantor’s interest in the property—whatever that may be—to the grantee. Those purchasing a home generally shouldn’t use a quitclaim deed.

When Are Quitclaim Deeds Used?

There are situations where quitclaim deeds are beneficial.

They’re easy to use and file, so they’re often used in situations like:

Gifting property without money exchanging hands
Correcting errors on a type of warranty deed
Simple additions or removals of names from titles

If you’re considering a quitclaim deed, be sure to review your situation with an experienced Houston real estate attorney to ensure you’re protected. Real estate attorneys can examine the current title insurance owner’s policy and even perform a thorough title search to clear any defects that may become issues in the future

#4 Transfer on Death Deed

Transfer on death assets or properties—including transfer on death deeds—are often used during the estate planning process , and have the same goal in mind: To transfer property or assets to the heir when the grantor dies and avoid having to go through probate.

Is it Wise to Use a Transfer on Death Deed in Texas?

Transfer on Death deeds became legal in the Lonestar State in 2015, and there are some drawbacks to this type of deed in Texas law. For example, when the grantor passes away, creditors of the estate have two years to make claims against the property, possibly pulling it back into the probate process .

For those two years, the new property owner won’t be able to purchase title insurance through a title company, which affects their ability to sell the property.

#5 Deed of Trust

According to the Texas property code regarding property deeds, if a mortgage loan is used during the home-buying process, a deed of trust will be needed to protect the lender.

Basically, there are three parties involved in using a deed of trust to transfer real estate:

The trustor (the new homeowner who’s borrowing)
The trustee

What Are the Trustee’s Responsibilities in Texas Deeds?

Typically, the trustee in a deed of trust is a title company or some other company fit to fulfill trustee duties. The trustee is responsible for collecting mortgage payments on behalf of the lender and has the ability to begin the foreclosure process should the borrower default on mortgage payments.

Transferring Real Property? Contact a Houston Real Estate Lawyer

Feeling overwhelmed after reading about all the different types of Texas property deeds? Don’t worry. The process is complicated, but there’s help. If you need help navigating the legal waters of your property deed options, contact a Houston real estate lawyer at The Titus Law Firm today.

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Eddison S. Titus is the Founder of The Titus Law Firm, a Houston estate planning, business law, and real estate law firm he founded in 2016. He has successfully represented clients in a wide range of legal matters, including will and trust creation, probate, real estate transactions, business formation, business and contract disputes, and business succession planning.

Eddison received his Juris Doctor from the Charlotte School of Law and is a member of the State Bar of Texas.

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How to Change the Name on Property Title Deeds in Texas

What is needed to transfer a deed in texas.

Most Texas property deeds have the same general requirements to complete the transfer of a deed from one person or entity to another.

Keep in mind, some Texas specific deed requirements differ from the requirements of other states.

Basically, to transfer a property title deed in Texas, you will need a properly prepared deed as follows:

The deed must be in writing.
It must provide a legal description of the property.
The name of the person or entity who is transferring the real estate [Grantor] and the name and address of the person or entity receiving the title [Grantee].
Original signatures of Grantors, acknowledged by a notary. The document must be signed in the presence of any notary – no exceptions.

Change Name on Property Title Deed

To start with, it is helpful to understand how the parties are identified on the deed used to change the name on a property title.

A Grantor is the person who is selling , transferring or granting title of the property to the new owner.
The new owner is the Grantee . This is the person buying or receiving title to the property.

Good to know: There can be as many Grantors or Grantees as are necessary. There is no limit. However, most county clerks will charge an extra fee if there are more than 5 new owners.

The deed needs to provide the full name of the current owner [Grantor].

The current owner’s name [Grantor] must match exactly the name of the current owner as shown in the county deed records. For example, if the current owner’s middle name is on the current deed, the middle name should be on the new deed. It is very important that the names match exactly.

Good to know: In most cases, the Grantor in the new deed should be the same person that is named as the Grantee in the prior deed unless that person is deceased. If that person is deceased, you may need an Affidavit of Heirship, a probated Will or similar court order.

Verify the Grantor’s Identity

Because identity fraud is very common these days, proper identification is required to verify the identity of the person signing the document . The notary should require a government issued photo identification before notarizing the document.

The document needs to be signed by the current owner [Grantor] of the property in front of a notary public to prevent identity theft and title theft. This is required by law.

Good to know: It is the duty of the notary to verify that the person signing the document is the person whose name is on the document. However, it is not the notary’s duty to conduct a title search or to verify the person signing the document really owns the property.

The full name of the current owner [Grantor] on the new deed must match that person’s photo identification.

Good to know: If the name of the owner on the current deed and on the photo ID do not match , you may be able to use the phrase “also known as” or “aka” or “formerly known as” when there has been a legal name change, such as with a divorce. Alternatively, you may need to use an Affidavit.

If the current owner’s name has been legally changed, you may want to file a deed showing the name change. A Warranty Deed transferring the property from “old name” to “new name” can be used . This should be done as soon as possible after the name has been changed before you lose your photo-identification with your old name on it.

One and the Same Affidavit

Proper spelling of the current owner’s name is required to maintain the chain of title for the property. The name of the person signing a deed must match the name on the current deed in the property records. If it does not, you may need to file a One and the Same Affidavit explaining why the names are different.

Identity Affidavit

A One and the Same Affidavit or an Identity Affidavit may be used in Texas when the current owner has changed his or her name or when there was an error in the spelling of the current owner’s name in his or her deed. This is a common problem.

If the current owner’s name was spelled wrong in his or her deed, that person may need to sign an Identity Affidavit stating that he or she is “One and the Same” person. The affidavit needs to state that his or her name was spelled wrong. This can only be used for minor changes, however.

When filed in the county records, the Affidavit should complete the chain of title to the current owner .

Affidavit of Heirship

Another commonly used Affidavit is an Affidavit of Heirship . This document is used to identify the heirs of a deceased property owner to complete the chain of title from the deceased owner to his or hers heirs.

An Affidavit of Heirship may be used when the person whose name is on the current deed to the property is deceased. This property is commonly called “Heir Property”. A properly prepared Affidavit of Heirship should legally identify the heirs of the deceased owner so that the heir property can be transferred .

Whose Address Should be on a Property Deed?

Generally, the address for the current owner [Grantor] who is transferring the property is not required to be put in the new property deed. In most cases, the current owner transfers the property and moves to another property and that person’s address changes.

Good to know: If the current owner is reserving a vendor’s lien, a life estate, a mineral interest, or other interest in the property, it is recommended that the current owner’s address be included in the deed.

On the other hand, the Grantee’s mailing address must be in the deed. A mailing address is required. This is the address to which tax invoices will be sent. If there is a problem with the property, this will be the address to which the city, county or state will send notices.

As the new owner of the property, the Grantee will be responsible for the property and the county needs to know that person’s mailing address. The address can be a post office box. Most county tax offices will not send tax bills to addresses outside of the USA.

Note : If the Grantee’s mailing address changes, the Grantee should notify the tax office of the new address, but you are not required to file a change of address with the county clerk.

Terminology in a Property Deed

It is helpful to familiarize yourself with the terminology used in property deeds.

All property deeds need to name a Grantor , Grantee , and Property Description .

Furthermore, all deeds need to state a Consideration which is the reason for the transfer.

A description of the property being transferred must be stated. Ideally, the property description used in the prior deed should be used in the new deed exactly with no substantial changes. If the property is being subdivided, a survey and permission from the county tax office may be required.

A deed should have a paragraph titled: Reservations from Conveyance. The deed should also have a paragraph titled: Exceptions to Conveyance and Warranty. This is where the grantor lists the items that are being excluded from the Warranty of title.

Consideration

The law requires all real estate deeds to have what is called “Consideration” in order to be valid and enforceable. Consideration is what is given for the transfer of the property. The consideration may be a payment of cash, a providing of services, or a gift. Something needs to be stated as consideration.

Good to know: Most deeds state that the Consideration is “$10.00 cash and other good and valuable consideration received.” Legally speaking, this means that the seller received at least $10 before signing the deed. This sentence is used so that the full amount paid for the property is not put in the public records for everyone to see. It is also used to show that the transfer of the property is not a gift. Gifts may require the payment of a gift tax. This phrase is for the privacy of the Seller and Buyer. The full amount paid for the property is not required to be stated in the Deed.

Consideration can be money paid in the past, present or future. It can also be services provided in the past, present or future. Regardless of what or when it is paid, there must be some consideration to prevent the transfer from being considered a gift.

The deed may state that the consideration is “Love and Affection” or similar words if the property is a gift, or it can simply state “Gift” as the consideration if it is a charitable donation.

Good to know: Gift Deeds may require gift taxes. Be sure to consult your tax advisor before making a gift transfer.

Note: If there is a mortgage used to purchase the property, the mortgage company will usually require the amount of the mortgage to be stated in the consideration portion of the deed so that the mortgage company’s lien is noted on the deed.

Reservations From Conveyance

The property deed should contain a paragraph for the Grantor to specify any Reservations from Conveyance . In most deeds, the word “ None ” is stated in the paragraph. However, the most common Reservations from Conveyance include a vendor’s lien, mineral rights or a life estate.

Mineral Reservation

The most common reservation is a Mineral Reservation, which means the Grantor/Seller is keeping or reserving the Mineral Rights to the property.

Good to know: The phrase “Mineral Rights” includes “all oil, gas and other minerals in, on, or under the surface of the property.”

If the Grantor wants to keep the oil and gas rights, a Mineral Reservation should be in the Reservations from Conveyance paragraph of the deed to retain the mineral interest.

Unless the Grantor reserves mineral rights, any mineral rights owned by the Grantor are automatically transferred to the Grantee.

Vendor’s Lien

If any portion of the property is financed, either by the Grantor/Seller or a mortgage company, there is usually a Vendor’s Lien reserved in the deed . A Vendor’s Lien is used to secure the promise to pay for the property.

Life Estate

Another common Reservation in a deed is a Life Estate. This is when the Grantor keeps the right to use the property for the rest of that person’s life. It may be used in a Lady Bird Deed which is also known as an Enhanced Life Estate Deed.

Exceptions to Conveyance and Warranty

The next paragraph of a deed is the “Exceptions to Conveyance and Warranty” .

Most deeds state in this paragraph the following standard exceptions:

Validly existing easements, rights-of-way, and prescriptive rights, whether of record or not; all presently recorded and validly existing instruments, other than conveyances of the surface fee estate, that affect the Property; and taxes for the current year, which Grantee assumes and agrees to pay, and subsequent assessments for that and prior years due to change in land usage, ownership, or both, the payment of which Grantee assumes. Grantee agrees to pay all of the property taxes for the current and subsequent years.

This is referred to as the Standard Exceptions clause. It means that the items listed are excepted or excluded from the Warranty of Title in the deed.

This means the Grantor/Seller does not guarantee or warrant that the items listed will not be a problem for the Grantee.

For example, if there is a visible road on the property, it is excluded from the warranty.

Furthermore, any documents filed in the deed records are excluded from the warranty.

Good to know: The Grantee/Buyer will need to pay present and future taxes. If there is a Roll Back Tax caused by the Grantee’s use of the property, he or she will need to pay the extra tax.

Note: These exceptions or exclusions from warranty are why a Grantee who is paying money for the property should conduct a Title Search and obtain a survey for the property if the Grantee does not know the property or the Grantor.

Signing and Filing Your Property Deed

The deed must be signed by the Grantor, in front of a notary – no exceptions. A person with a Power of Attorney may be able to sign for the Grantor, provided the Grantor is alive. A notary should confirm that the Grantor is alive before notarizing the document using a Power of Attorney.

Good to know: Texas does not require witnesses to the signing of a deed. Some states require witnesses, but Texas does not require witnesses.

The Grantee does not need to sign the document. However, sometimes a Grantor may want the Grantee to sign the document to confirm the Grantee has read the deed and accepts all of its provisions. This may include an AS IS clause, mineral reservations, Life Estate, or a Vendor’s Lien. But, it is not required that the Grantee sign. It is merely optional that a Grantee sign the deed.

After the deed has been properly prepared, signed by the grantor and notarized, it should be filed with the county clerk’s office in the real property records for the county in which the property is located as soon as possible. This is to prevent the Grantor from selling or transferring it again.

The deed should include a statement: “ After Recording Return To: “

This statement tells the county clerk the name and address of the person to whom the deed should be mailed after it has been recorded. This name and address can be anyone, but it is usually the Grantee. If there are more than one Grantees, the clerk will only mail it to one address. The address should be inside the USA. Most clerk’s will not mail outside the USA.

Good to know: If the deed is filed in person, the clerk will usually file it, record it, and hand it back to the person who signed it. The clerk may require a photo identification before you can file it in person.

There will be a recording or filing fee charged by the county clerk. This fee is generally from $15 to $40 depending on the county. Use a cashier’s check or money order payable to the county clerk. Most clerks do not accept personal checks.

Keep in mind that most county clerks will reject or not file a document that is not properly notarized, not legible, or not filed with the correct filing fee .

Good to know: County clerks do not research title. Just because the clerk files your deed, does not mean you really own the property. It just means the deed has been filed.

If the Grantor owned the property when he or she signed the deed, you own the property once it was signed. The title transfers with the signing of the document. Filing the document with the county clerk merely makes it a public record for the world to see. Filing is meant to prevent your Grantor from transferring the property again. Filing is for your protection . Make sure to file your deed ASAP .

Chain of Title

A property prepared deed is necessary to maintain the Chain of Title for a property.

The Chain of Title is the record of all property starting with the State of Texas down to the current owner. The chain of title must link each current owner to past owner starting with the State of Texas.

For example, all property in Texas originally was owned by the government. The government transferred a tract of land to person A, who transfers to person B, who dies and leaves it to person C, who marries D, loses the property in a divorce to D, D marries E, D and E sell to F, and so on. The chain from the government to F should be complete. If not, there is a problem with the chain of title and a title company may not insure the title to the property.

Transferring Property Title in Texas

Texas property deeds may have specific requirements that differ from other states. It is a good idea to have your deed prepared by a Texas licensed Real Estate Attorney when you plan on transferring property title. Mistakes may be difficult and/or costly to correct once a deed has been filed in the property records.

If you have any questions, give attorney Scott Steinbach a call at 972-960-1850 . There is no fee for your call.

State Rundown 7/11: Mansion Taxes in the Spotlight

July 11, 2024

.ITEP Staff

A new ITEP report released in collaboration with the Center on Budget and Policy Priorities highlights how “mansion taxes” can help create fairer tax codes and fund vital public services like health care, transportation, education, and housing. The report, which undertakes an in-depth exploration of real estate data compiled by Zillow, was published with substantial appendices that pinpoint the revenue potential of various mansion tax structures in most states.

While Massachusetts legislators recently dropped a real estate transfer tax from their major housing bill, the District of Columbia council sent a budget to the mayor that includes a mansion tax that would increase the tax rate on properties valued over $2.5 million. Meanwhile, lawmakers in New Jersey and South Carolina continue to, respectively, raise and reduce needed revenues. And Maryland ’s digital ad tax lives to see another day as the US District Court for the District of Maryland dismissed opposition claims.

Major State Tax Proposals and Developments

A judge ruled in favor of MARYLAND in a dispute over the state’s digital advertising tax, dismissing claims that it violates First Amendment rights. The tax, which was enacted in 2021 to fund education reforms, has faced multiple legal challenges. Despite some initial successes for opponents in state court, the tax has been upheld and continues to be enforced, collecting over $170 million from major tech firms. The ruling enables the state to continue collecting the tax. – MILES TRINIDAD
NEW JERSEY corporations with more than $10 million in profits will now pay a top corporate tax rate of 11.5 percent following Gov. Phil Murphy’s approval of a 2.5 percent corporate transit fee which was included in the state budget. The revenue will fund the state transit system. – MARCO GUZMAN
Lawmakers in SOUTH CAROLINA used a portion of the state’s $600 million surplus to accelerate state income tax cuts . The state’s personal income tax rate was set to decrease from 6.4 to 6.3 percent for 2024 per previous legislation but will now drop to 6.2 percent. The acceleration will cost the state an additional $100 million a year. – NEVA BUTKUS

State Roundup

City leaders in Denver, COLORADO will ask voters in November to increase the local sales tax by 0.5 percentage points to 9.31 percent. The sales tax increase would raise $100 million a year, dedicated to affordable housing projects.
MONTANA Democrats previewed their property tax plan for 2025’s legislative session , which includes a new homestead exemption for residential and commercial property owners, a tiered property tax rate structure, and a targeted tax credit for seniors, low- and middle-income homeowners and renters.
The misguided effort to replace most of NEBRASKA ’s tax system with a single consumption tax – dubbed the “EPIC Tax” – will not appear on the November ballot after failing to gather enough signatures . Supporters will still bring their proposal to the legislature during a special session set to occur later this month, but it has repeatedly failed to gain significant support there as well.
Details of NEBRASKA Gov. Jim Pillen’s plan for that special session are slowly coming into focus . The proposal that will kick off the session is likely to include a state takeover of K-12 school operational funding , strict restrictions on local spending, an assortment of rate hikes on specific items, and an extreme expansion of the state sales tax base, including to business and agricultural inputs. Lawmakers have expressed some openness to the discussion but few believe such a massive overhaul can or should be achieved in a two-week session as Pillen intends.
NORTH CAROLINA Gov. Roy Cooper signed legislation increasing the aggregate cap on the maximum vehicle registration excise tax rate that transportation authorities can levy on registered motor vehicles from $8 to $10 a year.
WEST VIRGINIA Gov. Jim Justice announced that the state has triggered an automatic personal income tax cut due to rising state revenues, which will reduce each bracket’s rate by 3 or 4 percent (details remain to be finalized). The legislature may also return for a special session in August to consider a proposed credit for child care or additional personal income tax cuts supported by the governor.

What We’re Reading

In a recent blog, ITEP highlights the reality check Kentucky policymakers are coming to face after approving automatic tax cuts in 2022. From public education cuts to having to partially finance the mandated tax cuts with debt, the authors explain why Kentucky’s “march to zero” would leave working families with a net tax increase as wealthy households reap the benefits.
The Tennessee Lookout documents the extensive special tax breaks that large corporations receive in Tennessee. For example, corporate industrial chicken barns—almost all controlled by multinational corporations like Tyson—don’t pay sales tax on the large amounts of water they use, unlike regular Tennesseans. The article also highlights benefits given to FedEx and other large corporations.
While some Ohio Republicans have introduced legislation to eliminate the income tax and the commercial activities tax, arguing that it would stimulate the economy, a majority of economists surveyed on the proposals disagreed. Out of 19 Ohio economists, 11 disagreed that it would stimulate economic growth, and all but one economist said that eliminating the Ohio income tax would make it difficult to balance the state budget. As we’ve noted , income tax elimination would be an expensive giveaway to the state’s wealthiest.

If you like what you see in the Rundown (or even if you don’t) please send any feedback or tips for future posts to Aidan Davis at [email protected] . Click here to sign up to receive the Rundown via email.

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Real Estate Deed and Title Transfers in Texas: What You Need to Know

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Understanding the Pros and Cons of Executing a Transfer on Death Deed in Texas

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