Transfer of Ownership – Contract Agreements and Conveyance Documents

Available Packages:

Straight Transfer of Title:  

If your goal is to simply transfer property title, either in whole or in part, from one or more parties to another, without the necessity of contracts, closing statements, mortgage payoffs, title insurance, etc., then we can accomplish that with a warranty deed. Examples may be a transfer between former spouses during/after divorce, a gift of property from one to another, or a transaction where the parties are familiar with each other, do not require a closing, mortgage payoff, title insurance, etc., and just need the legal documentation to evidence the transfer, choosing to handle any financial considerations between themselves.

1. 1. Sale of Property for Cash or Gift
      • A transfer of property for which a buyer pays cash, or the conveyance is made as a gift, is accomplished in Texas through the use of a Warranty Deed. The Deed must be signed by the Grantor, notarized by a notary public, delivered to and accepted by the Grantee, and filed of record at the appropriate county courthouse to be fully effective. In drafting a deed, careful consideration must be made as to whether the parties are married, whether minerals will convey, whether restrictions do or shall affect the property, and the status of financing and liens.
      • Documents included:
        • Warranty Deed
        • Follow-Through” Instructions
   2. Sale of Property with Seller-Financed Loan
      • If the buyer pays for the property by agreeing to pay all or part of the purchase price to the seller over a period of time, then the transaction must be documented with proper seller-financing documents. In this scenario, the seller would execute and deliver a Warranty Deed to the buyer, and the buyer would execute and deliver a Promissory Note ( a written agreement to pay over time, typically with interest) and a Deed of Trust (or mortgage, as commonly called, allowing the seller to foreclose and take back the property if the buyer defaults on its obligation to pay on the Promissory Note) in favor of the seller
      • Documents included:
        • Warranty Deed, Promissory Note, Deed of Trust, Notice of Final Agreement and W-9 form
        • “Follow-Through” Instructions
      • Sale of Property with Third Party-Financed Loan
      • If the buyer pays for the property by borrowing part or all of the purchase price from a third party lender, then the seller would execute and deliver a Warranty Deed to the buyer, the buyer would execute and deliver a Promissory Note ( a written agreement to pay over time, typically with interest) and a Deed of Trust (or mortgage, as commonly called, allowing the seller to foreclose and take back the property if the buyer defaults on its obligation to pay on the Promissory Note) in favor of the third party lender. Seller would get cash from the sale, made up of any down payment required by the lender, and the loan proceeds (less any closing costs).
      • Documents included:
        • Warranty Deed, Promissory Note, Deed of Trust, Notice of Final Agreement and W-9 form
        • “Follow-Through” Instructions

Current Transfer to Avoid Future Probate:

If the grantor’s intent in transferring property now is merely to avoid future probate, the parties have several options:

1. Deed Reserving Life Estate
   • The grantor can presently convey the property to his/her intended beneficiaries, but reserve the right to continue living on the property until death. This option serves to avoid future probate upon death (at least as to the real estate), give the intended beneficiary some peace of mind that they have secured title to the property, but allows the grantor to retain possession, along with any tax exemptions they may qualify for in most counties. The drawback is that in conveying title now, the grantor cannot change their mind and “undo” the transaction later without the consent of the beneficiaries.
   • Documents included:
     • Warranty Deed Reserving Life Estate
     • “Follow-Through” Instructions
2. Deed a Half Interest to Another with “Right of Survivorship”
   • This option adds another person to the title, and allows the survivor of either owner to take full title upon death of the other without the need for probate. But not all title companies will insure properties subject to these type deeds without involvement of the probate court, and again, the grantor cannot change their mind and “undo” the transaction later without the consent of the grantee. Further, the amount of tax exemptions may be reduced due to the addition of another owner, who may not qualify for the same exemptions.
   • Documents included:
     • Warranty Deed conveying as Joint Tenants with Right of Survivorship
     • Right of Survivorship Agreement
     • “Follow-Through” Instructions
3. Transfer on Death Deed
   • This new type of deed allows a present property owner to convey an interest now to an intended beneficiary and thereby avoid probate upon their death, but in the meantime, the grantor can continue to occupy the property, qualify for present tax exemptions, and even change their mind and rescind (cancel) the deed at any time. The grantor can even sell their property without the joinder of the grantee.
   • Documents included:
     • Transfer on Death Deed
     • “Follow-Through” Instructions

Need for Closing Services:

If the grantee requires a title search/title insurance prior to taking title to the property, they are obtaining a loan from a third party lender, or a present mortgage needs to be paid off so that the grantee takes title free and clear from any liens, typically a full closing will be required. If so, we can help through our A to Key™ closing service!