Key Takeaways
- Texas recognizes a transfer on death deed (Estates Code Chapter 114). Recorded before death, it passes the property outside probate.
- It must be recorded during the owner\u2019s lifetime. A TODD found in a drawer after death does nothing.
- A TODD does not wipe out debts. Liens and a mortgage follow the property to the beneficiary.
- Title companies still need to see the chain. Expect an affidavit of death and supporting documents before a sale can close.
Two Ways A Texas House Reaches The Next Owner
When an owner dies, the house has to get from their name into somebody else's before it can be sold. Texas offers a route that goes through the probate court and a route that skips it, and which one applies was mostly decided before the death, not after.
The route that skips probate is a transfer on death deed, authorised by Texas Estates Code Chapter 114. The owner signs and records a deed during their lifetime naming who receives the property at death. It transfers nothing while they are alive: they can sell, mortgage or revoke it. At death, the property passes to the named beneficiary outside the estate.
The alternative is probate, which for a will is Chapter 256, and Texas independent administration is unusually fast by American standards. Our article on selling an inherited house in Texas compares the probate routes in detail.
The Requirement That Catches Everyone
A transfer on death deed must be recorded in the county property records during the owner's lifetime. A signed TODD found in a drawer after the death, or one signed but never taken to the clerk, does not do the job.
This is the single most common disappointment we see in this area. A family knows the deed exists, believes probate has been avoided, and then discovers the document was never recorded. At that point you are in probate after all, and several weeks have been spent on the assumption you were not. If somebody tells you a TODD exists, the very first thing to do is check the county records rather than the filing cabinet.
How The Two Routes Compare
| Transfer on death deed | Probate of a will | |
|---|---|---|
| Set up before or after death? | BEFORE. Must be signed and recorded in the owner's lifetime | After. The will is offered for probate |
| Goes through a court? | No, for that property | Yes, though independent administration is light touch after appointment |
| Covers other assets? | No. Only the property described in the deed | Yes, the whole estate |
| Wipes out the mortgage or liens? | No. Debts follow the property | No. Debts are handled through the estate |
| Revocable by the owner? | Yes, at any time while alive | Yes, a will can be changed while alive |
| What title needs before a sale | Proof of death plus supporting affidavits | Letters testamentary or equivalent authority |
| Creditor claims still possible? | Yes. A TODD is not a shield against creditors | Yes, through the estate claims process |
An orientation table, not advice on which applies to you. That depends on the documents, the debts and the heirs, and county practice varies. A Texas probate attorney can tell you in one consultation which route you are actually in.
What A TODD Does Not Do
It is worth being blunt about the limits, because "avoids probate" gets heard as "solves everything".
- It does not clear the mortgage. The beneficiary receives the property subject to the lien. If there is a loan, it still has to be paid or refinanced, and a sale pays it off at closing.
- It does not defeat liens or judgments. Tax liens, HOA liens and judgment liens attach to the property and survive the transfer. See back taxes and liens.
- It does not stop creditor claims against the estate in every circumstance.
- It does not cover anything else. Bank accounts, vehicles and a second property all need their own arrangements.
- It does not make a title company skip diligence. Expect to provide an affidavit of death and supporting documents before a sale can be insured.
Selling As A TODD Beneficiary
The practical sequence is usually short. You establish the death of record, provide the title company with what it asks for, and it insures the sale. Because there is no court appointment to wait for, this can move faster than a probate sale, which is the main reason people set a TODD up in the first place.
Two things slow it down. If the deed's legal description is wrong or ambiguous, that has to be sorted out. And if there are multiple beneficiaries, all of them have to sign to sell, exactly as with any co-owned property. One beneficiary who does not want to sell stops the sale, and that is a matter for an attorney rather than a buyer. Title problems that delay a Texas sale covers both.
If There Is No TODD And No Will
Then you are into intestate succession and possibly an affidavit of heirship under Estates Code Chapter 203. Be careful with that instrument: it records who the heirs are believed to be, and it is evidence rather than a court determination. Title companies weigh affidavits of heirship very differently from one another, and an heirship affidavit that satisfied one company may not satisfy the next.
Do not assume an affidavit is sufficient to close until the title company has said so in writing. That single assumption causes more wasted weeks in inherited-property sales than anything else we see.
What To Do This Week
- Search the county property records for a recorded TODD, by the deceased's name. Most Texas counties allow this online. Recorded or not recorded is the fork in the road.
- Get the death certificate. Everything downstream needs it.
- Ask a title company to open a file early, even before you have chosen a buyer. The commitment tells you what is actually required.
- Talk to a Texas probate attorney if there is no recorded TODD, more than one beneficiary, or any disagreement. One consultation is cheap relative to a partition suit.
Where We Fit
We buy inherited property in either route, and we are used to the paperwork taking a while. We will not pretend we can shortcut a court or a title requirement, and we would rather work through a title problem than walk away from it, because these sales almost always have one.
You do not need to clear the house out, repair anything, or travel to Texas to do it. See the inherited property page for the shorter version, and how it works for the process end to end.
This is general information, not legal, tax or financial advice. Texas procedure turns on the specific documents in your file and the dates on them. For anything involving a court, an estate, a lender or a taxing authority, talk to a Texas attorney or a HUD-approved housing counselor as well as to us.
Sources
- Texas Estates Code Chapter 114 (transfer on death deed) — execution and recording requirements
- Texas Estates Code Chapter 256 (probate of wills) — the probate route
- TexasLawHelp, transfer on death deeds — plain-language guidance and forms