How Does a Transfer on Death Deed Work for a House in Texas?

A Texas transfer on death deed names who will receive your house when you die. You keep full ownership while you are alive, and at your death the house passes to the person you named without going through probate. Texas has allowed these deeds since September 1, 2015, under Estates Code Chapter 114, and there is one rule that matters more than any other: the deed has to be recorded in the county deed records before you die, or it does nothing.

We bring this up because of what happens on the other end. When we list a house for heirs, one of the first things the title company asks is how the house passed to them. A clear recorded deed answers that in a day. A house with no plan can mean months of court before anyone can sign a listing agreement.

The Rules That Make It Work

Under Texas Estates Code Chapter 114, a transfer on death deed has to meet a short list of requirements:

• It has the formalities of a normal deed. Signed by the owner, acknowledged before a notary, with the property’s legal description.
• It says the transfer happens at the owner’s death. That is what separates it from a regular deed, which transfers the house right away.
• It is recorded before the owner dies, in the deed records of the county where the house sits.
• The beneficiary does not have to know about it. No notice, delivery, acceptance or payment is required while the owner is alive.
• It cannot be signed by someone holding a power of attorney. The owner has to sign it personally.

What It Does Not Change While You Are Alive

Nothing about your ownership changes until your death. You can live in the house, sell it, refinance it or rent it out. You keep your homestead exemption, because you still own the home. Our post on the Texas homestead exemption covers what that saves.

You can also change your mind. A transfer on death deed is revocable, and you revoke it by recording a revocation or a newer transfer on death deed. A will does not revoke it. That one surprises people. If you sign a new will leaving the house to someone else but never record anything, the recorded deed still controls.

What the Beneficiary Gets, and What Comes With It

At your death, the beneficiary takes the house subject to everything recorded against it. A mortgage, a home equity loan or a tax lien stays with the house. Inheriting it does not pay it off. The beneficiary will need to keep making payments, refinance, or sell the house and pay the loan from the proceeds.

After the death, the beneficiary usually records an affidavit of death with a copy of the death certificate, and the title company works from there. Texas law includes a form for that affidavit as well as a statutory form for the deed itself.

If you name more than one person, think about what happens if one of them dies before you. Under the statute, a share can lapse unless the deed names an alternate. The statutory form lets you name one, and an attorney can tailor the wording.

A Transfer on Death Deed Compared With a Will

	Transfer on death deed	Will
Goes through probate for the house	No	Usually yes
Must be recorded before death	Yes	No
Can be changed by a later will	No	Yes
Covers your other property	No, only the real estate in the deed	Yes

Most people use both. The deed moves the house, and the will covers everything else.

Our Take

Peter has been selling Texas homes since 2004, and the inherited sales that drag on are rarely about the house. They are about paperwork nobody finished. If you own a home and know who you want to have it, a recorded transfer on death deed is one of the simplest ways to keep that house out of court. If your situation has a second marriage, several heirs or a property you hold with someone else, talk to a Texas estate planning attorney before you sign. Our post on deed of trust versus warranty deed in Texas explains the other documents you will see in your file.

If a house has already been inherited and you are deciding what to do with it, our Seller’s Guide walks through the sale. The Move Live Love TX Team™ is a husband-and-wife real estate team with CB&A, Realtors, serving Houston and the surrounding areas, from Galveston to Conroe. This is general information, not legal advice.

Frequently Asked Questions

What is a transfer on death deed in Texas?

A transfer on death deed is a deed that names who will receive your Texas real estate when you die. You keep full ownership while you are alive, and the house passes to the named beneficiary at your death without going through probate. Texas has allowed them since September 1, 2015, under Estates Code Chapter 114.

Does a transfer on death deed have to be recorded in Texas?

Yes. A Texas transfer on death deed only works if it is recorded in the deed records of the county where the property is located before the owner dies. A signed deed sitting in a drawer at the owner's death does not transfer the house.

Can I sell my house if I have a transfer on death deed?

Yes. The deed does not take effect until your death, so while you are alive you can sell, refinance or change your mind. You can revoke it by recording a revocation or a later transfer on death deed, but a will cannot revoke it.

Does the beneficiary have to pay off the mortgage?

The beneficiary takes the house subject to whatever is recorded against it, including a mortgage or other liens. Inheriting the house does not erase the loan, so the beneficiary will need to keep paying it, refinance it or sell the house.

Do I need a lawyer to make a transfer on death deed in Texas?

Texas law includes a statutory form, but a Texas estate planning attorney is worth the fee if you have more than one heir, a mortgage, a blended family or other property. Getting the legal description or the beneficiary wording wrong is the common mistake.