Transferring ownership of real estate in Texas can be a smooth process if you understand the required steps and legal documents. Whether you’re gifting a home to a family member, selling it, or adding a spouse to the title, knowing how to handle a property transfer properly helps you avoid legal and financial issues down the road.

In this blog, we’ll walk through the essential steps for transferring ownership of a property in Texas.

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1. Determine the Type of Transfer

Before initiating the process, identify the type of ownership transfer. Common scenarios include:

• Sale of property (through a traditional real estate transaction)
• Gift transfer (e.g., to a child or relative)
• Transfer into a trust
• Transfer to a business entity
• Transfer due to divorce or inheritance

The type of transfer influences the form of deed you’ll use and whether there are tax implications.

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2. Choose the Right Deed

In Texas, property ownership is typically transferred through one of the following deed types:

• General Warranty Deed: Offers the highest level of protection to the buyer; commonly used in sales.
• Special Warranty Deed: Offers limited protection; often used in commercial transactions.
• Quitclaim Deed: Transfers whatever interest the grantor has, with no guarantees; often used in informal transfers between family members.
• Gift Deed: Used when no payment is exchanged.
• Transfer on Death Deed (TODD): Allows property to pass to a named beneficiary after the owner’s death, avoiding probate.

Always consult with a real estate attorney or title company to ensure you’re using the appropriate deed for your situation.

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3. Prepare the Deed

Once you’ve chosen the right deed:

• Include the legal description of the property (from the previous deed or the county appraisal district).
• Clearly name the grantor (current owner) and the grantee (new owner).
• Note any consideration (payment amount) if applicable.
• Sign the deed in front of a notary public.

In Texas, deeds must be notarized to be valid.

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4. File the Deed with the County Clerk

After the deed is signed and notarized, file it with the County Clerk’s office in the county where the property is located. This ensures the public records reflect the change in ownership.

• Filing fee: Usually ranges from $25 to $50.
• Original vs. copy: Bring the original signed deed and one or more copies for stamping.

This step is essential — without filing, the transfer isn’t legally recognized.

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5. Update Property Tax Records

Once the deed is filed, contact the County Appraisal District to update the property tax records and mailing address. If the new owner qualifies for exemptions (like homestead or over-65), those can be filed at this time as well.

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6. Understand the Tax Implications

Texas does not have a state property transfer tax, but federal gift tax rules may apply if the property is gifted. Also, transferring property can affect capital gains taxes and homestead exemptions.

It’s wise to consult a tax advisor or CPA to understand the financial consequences of the transfer.

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Final Thoughts

Transferring property ownership in Texas is a relatively straightforward process, but it requires attention to detail. Using the correct deed, notarizing it properly, and recording it with the county are essential steps to protect all parties involved.

If you’re unsure about the legal or tax aspects of your specific transfer, it’s always best to consult a real estate attorney or title professional to ensure everything is done right.

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Have questions about property transfers or need a referral to a trusted real estate attorney in Texas? Contact us today — we’re here to help.

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