How to Legally Transfer Property Ownership in Texas

Are you planning to transfer ownership of your property in Texas?

Whether you are selling or gifting the property, there are specific legal procedures you need to follow to ensure the transfer is lawful and valid. We’ll walk you through Texas property laws, types of ownership, the steps for a Texas property ownership transfer, and how a Houston real estate attorney can help.

Understanding Texas Property Laws

Before you start the transfer process, it is crucial to understand the property laws in Texas with regard to who holds the title to the property.

For example, if you’re selling the property after a divorce, it’s important to know that Texas is a community property state. This means all property acquired during a marriage is considered marital property, and each spouse has a 50% ownership interest. However, separate property owned before the marriage, inheritance, and gifts are not considered community property.

A Texas real estate lawyer can help you determine if there are any title defects or possible ownership disputes associated with the property you’re buying or selling.

Types of Property Ownership in Texas

There are several ways to own property in Texas, and the type of ownership the property is currently under and the type you’ll be engaging in when buying it are relevant factors in the property’s ownership transfer.

Types of ownership in Texas include:

• Sole ownership — owned by one person
• Joint tenancy with right of survivorship — owned by two or more people, and when one owner dies, their interest is transferred to the surviving owner(s).
• Community property — owned by both spouses during the marriage
• Tenancy in common — owned by two or more people with undivided interests, and when one owner dies, their interest is transferred to their heirs.

Knowing the type of ownership is crucial because it will determine how the transfer process will proceed.

Steps to Transfer Property Ownership in Texas

Here are the steps to follow when transferring property ownership in Texas legally:

Step 1: Prepare the Deed

The first step is to prepare the deed, but what’s the difference between a title vs. a deed?

Well, while the title of a property refers to the concept of its ownership, the deed is a legal document that legally transfers that title from one person to another. Your deed must include the legal description of the property, the names of the current owner(s) and the new owner(s), and other elements, depending on the type of deed being used.

Step 2: Sign the Deed

Once the deed is prepared, the current owner(s) must sign it in the presence of a notary public. The notary public will then acknowledge the signatures and affix their seal to the document.

Step 3: Record the Deed

After the deed is prepared, signed, and notarized, it must be recorded with the county clerk’s office where the property is located. Recording the deed is crucial because it protects the new owner(s) from any ownership claims against the property by third parties.

Step 4: Update Property Records

The new owner(s) must update the property records with the appropriate county appraisal district and tax office. This will ensure that the new owner(s) receive the tax bills and other important documents related to the property.

Tips for Transferring Property Ownership in Texas

• Consult a real estate attorney to ensure the transfer process complies with Texas property laws and regulations.
• Check for any outstanding liens or judgments against the property before transferring ownership.
• If you are transferring the property to a family member as a gift, consider filing a gift tax return with the IRS.
• If transferring the property as part of estate planning, consider creating a trust to avoid probate.

Ensure Your Transfer is Done Right With the Help of a Trusted Houston Real Estate Attorney

Transferring property ownership in Texas is a straightforward process as long as you follow the legal procedures. It is crucial to understand the property laws in Texas, the type of property ownership, and the steps involved in the transfer process. By following these steps and tips, you can ensure a lawful and valid transfer of property ownership in Texas.

Contact us today at the Titus Law Firm, and we’ll ensure your Texas property ownership transfer is done right.

FAQ: Texas Property Ownership Transfers

Is hiring a real estate attorney mandatory for transferring property ownership in Texas?
While it is not mandatory to hire an attorney, it is highly recommended to ensure the transfer process complies with Texas property laws and regulations.

How much does it cost to transfer property ownership in Texas?
The cost of transferring property ownership in Texas varies depending on the county where the property is located. Generally, you must pay for recording fees, transfer taxes, and other related expenses.

What is probate, and how can transferring property to a trust help avoid it?
Probate is a legal process after someone dies, where the court distributes their assets according to their will or the state law if there’s no will. A trust can help avoid probate by transferring the ownership of the property to the trust, which allows for a smoother and quicker distribution process.

Do I need to update the property records even if I’m not planning to sell the property?
Yes. It’s essential to update the property records with the appropriate county appraisal district and tax office to ensure you receive the tax bills and other important documents related to the property.