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Joe S.
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Transfer on death deed in Texas?

Joe S.
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Posted May 19 2022, 15:41

So we have a property under contract and the seller had a deed upon death transfer to him. As far as I know from the title company everything came back clean on the title report. The issue it seems that is coming up is that she is saying that her underwriter is saying the seller needs to wait six months. I have never heard of anything like that. I’m not sure if it’s simply that underwriter or if all underwriters do the same thing. The property is in Wilson County. 

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Bill Brandt#2 Creative Real Estate Financing Contributor
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Replied May 19 2022, 15:56

I Don’t know about Texas but absolutely not true in MN. In Mn it is 100% revokable and changeable at anytime the same day. The reason for these procedures is to avoid probate. If the seller is alive they can change it. Talk to the county recorder. 

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Bill Brandt#2 Creative Real Estate Financing Contributor
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Replied May 19 2022, 15:59

A quick google says…

A Texas TOD deed form is a special type of deed form that transfers property to designated beneficiaries upon an owner’s death. It works much like a transfer-on-death designation on a bank account. A transfer-on-death deed identifies beneficiaries who will inherit the real estate at death. The deed may name more than one beneficiary. It may also name alternate beneficiaries to inherit the property if the primary beneficiaries are deceased. On the death of the current owner, the property passes automatically to the named beneficiaries.

Because transfer-on-death deeds do not transfer property until the current owner’s death, the owner retains broad control over the property during his or her lifetime. The beneficiaries named in the deed have no rights to the property while the owner is still alive. A Texas transfer-on-death deed is effective even if the designated beneficiaries do not know it exists.

During the current owner’s life, he or she may revoke the transfer-on-death designation or name different beneficiaries.


https://www.deedclaim.com/texa...

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Greg H.
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Greg H.
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ModeratorReplied May 19 2022, 16:24

Basically , you might get the property someday. However, I can leverage it, fail to maintain it or flat out change my mind before then. Personally, I would place very little value if any on that type of conveyance 

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Joe S.
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Replied May 19 2022, 16:33

@Bill Brandt

@Greg H.

Just for clarification the seller is the person that had the property transferred  to him upon death of his dad. The death already occurred and dad is gone as of April l. The title company that I’m working with said that they need to wait six months after the death to issue title insurance.. That’s what I never heard of before.

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Replied May 19 2022, 16:49

Sorry, I misread/misunderstood. Your county assessor should be able to tell you, or in most states you can look online yourself. To see if the title is in their name yet. If so you SHOULD be golden. 

If not, maybe you create and sign an option or a lease to own that’s good for a year, in case they run in to problems. Something like $10k today, towards the option to buy for $10k less than the agreed upon price. If it’s owned outright can you purchase it with 90% of the money to stay in escrow until the title company is able to issue a title policy?

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Joe S.
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Joe S.
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Replied May 19 2022, 20:30
Quote from @Bill Brandt:

Sorry, I misread/misunderstood. Your county assessor should be able to tell you, or in most states you can look online yourself. To see if the title is in their name yet. If so you SHOULD be golden. 

If not, maybe you create and sign an option or a lease to own that’s good for a year, in case they run in to problems. Something like $10k today, towards the option to buy for $10k less than the agreed upon price. If it’s owned outright can you purchase it with 90% of the money to stay in escrow until the title company is able to issue a title policy?

 The deed is in the sellers name already. We were moving forward with funding next week and then all of a sudden the underwriters started talking about needing to wait six months from the death.. I’m not sure if this is a case by case Per underwriter or if this is across the board. If this is simply a case by case underwriter/title insure then I need to find another title company as soon as possible.

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Peter Walther
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Peter Walther
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Replied May 20 2022, 08:59
Quote from @Joe S.:
Quote from @Bill Brandt:

Sorry, I misread/misunderstood. Your county assessor should be able to tell you, or in most states you can look online yourself. To see if the title is in their name yet. If so you SHOULD be golden. 

If not, maybe you create and sign an option or a lease to own that’s good for a year, in case they run in to problems. Something like $10k today, towards the option to buy for $10k less than the agreed upon price. If it’s owned outright can you purchase it with 90% of the money to stay in escrow until the title company is able to issue a title policy?

 The deed is in the sellers name already. We were moving forward with funding next week and then all of a sudden the underwriters started talking about needing to wait six months from the death.. I’m not sure if this is a case by case Per underwriter or if this is across the board. If this is simply a case by case underwriter/title insure then I need to find another title company as soon as possible.


 Have you received a commitment from the title agent and if so what is the requirement related to the conveyance?  If not I'd ask for one, that should explain what the underwriter is concerned about.

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Joe S.
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Joe S.
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Replied May 20 2022, 10:05
Quote from @Peter Walther:
Quote from @Joe S.:
Quote from @Bill Brandt:

Sorry, I misread/misunderstood. Your county assessor should be able to tell you, or in most states you can look online yourself. To see if the title is in their name yet. If so you SHOULD be golden. 

If not, maybe you create and sign an option or a lease to own that’s good for a year, in case they run in to problems. Something like $10k today, towards the option to buy for $10k less than the agreed upon price. If it’s owned outright can you purchase it with 90% of the money to stay in escrow until the title company is able to issue a title policy?

 The deed is in the sellers name already. We were moving forward with funding next week and then all of a sudden the underwriters started talking about needing to wait six months from the death.. I’m not sure if this is a case by case Per underwriter or if this is across the board. If this is simply a case by case underwriter/title insure then I need to find another title company as soon as possible.


 Have you received a commitment from the title agent and if so what is the requirement related to the conveyance?  If not I'd ask for one, that should explain what the underwriter is concerned about.

I did receive a Title commitment and the requirement is to wait six months From the date of death. That date of death was in April 2022. 

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Peter Walther
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Peter Walther
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Replied May 21 2022, 06:22
Quote from @Joe S.:
Quote from @Peter Walther:
Quote from @Joe S.:
Quote from @Bill Brandt:

Sorry, I misread/misunderstood. Your county assessor should be able to tell you, or in most states you can look online yourself. To see if the title is in their name yet. If so you SHOULD be golden. 

If not, maybe you create and sign an option or a lease to own that’s good for a year, in case they run in to problems. Something like $10k today, towards the option to buy for $10k less than the agreed upon price. If it’s owned outright can you purchase it with 90% of the money to stay in escrow until the title company is able to issue a title policy?

 The deed is in the sellers name already. We were moving forward with funding next week and then all of a sudden the underwriters started talking about needing to wait six months from the death.. I’m not sure if this is a case by case Per underwriter or if this is across the board. If this is simply a case by case underwriter/title insure then I need to find another title company as soon as possible.


 Have you received a commitment from the title agent and if so what is the requirement related to the conveyance?  If not I'd ask for one, that should explain what the underwriter is concerned about.

I did receive a Title commitment and the requirement is to wait six months From the date of death. That date of death was in April 2022. 

 That's a new one on me, I'd expect a requirement for a deed from anyone the underwriter thinks might have an interest, not wait out a statute of limitations.  I'd probably contact an agent for a different agent and see if they make the same requirement.

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Joe S.
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Replied May 21 2022, 06:46
Quote from @Peter Walther:
Quote from @Joe S.:
Quote from @Peter Walther:
Quote from @Joe S.:
Quote from @Bill Brandt:

Sorry, I misread/misunderstood. Your county assessor should be able to tell you, or in most states you can look online yourself. To see if the title is in their name yet. If so you SHOULD be golden. 

If not, maybe you create and sign an option or a lease to own that’s good for a year, in case they run in to problems. Something like $10k today, towards the option to buy for $10k less than the agreed upon price. If it’s owned outright can you purchase it with 90% of the money to stay in escrow until the title company is able to issue a title policy?

 The deed is in the sellers name already. We were moving forward with funding next week and then all of a sudden the underwriters started talking about needing to wait six months from the death.. I’m not sure if this is a case by case Per underwriter or if this is across the board. If this is simply a case by case underwriter/title insure then I need to find another title company as soon as possible.


 Have you received a commitment from the title agent and if so what is the requirement related to the conveyance?  If not I'd ask for one, that should explain what the underwriter is concerned about.

I did receive a Title commitment and the requirement is to wait six months From the date of death. That date of death was in April 2022. 

 That's a new one on me, I'd expect a requirement for a deed from anyone the underwriter thinks might have an interest, not wait out a statute of limitations.  I'd probably contact an agent for a different agent and see if they make the same requirement.

I spent hours on the  phone yesterday Calling Title companies trying to explain the situation. We finally found  different title company and explained the setting and they feel very optimistic of getting it closed in timely fashion.  We have already moved the file as of yesterday.

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Guy Gimenez
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Guy Gimenez
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Replied May 21 2022, 06:55

It's absolutely an underwriter specific issue. There is statute requiring this. Move the file to another title company. 

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Peter Walther
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Replied May 21 2022, 06:55
Quote from @Joe S.:
Quote from @Peter Walther:
Quote from @Joe S.:
Quote from @Peter Walther:
Quote from @Joe S.:
Quote from @Bill Brandt:

Sorry, I misread/misunderstood. Your county assessor should be able to tell you, or in most states you can look online yourself. To see if the title is in their name yet. If so you SHOULD be golden. 

If not, maybe you create and sign an option or a lease to own that’s good for a year, in case they run in to problems. Something like $10k today, towards the option to buy for $10k less than the agreed upon price. If it’s owned outright can you purchase it with 90% of the money to stay in escrow until the title company is able to issue a title policy?

 The deed is in the sellers name already. We were moving forward with funding next week and then all of a sudden the underwriters started talking about needing to wait six months from the death.. I’m not sure if this is a case by case Per underwriter or if this is across the board. If this is simply a case by case underwriter/title insure then I need to find another title company as soon as possible.


 Have you received a commitment from the title agent and if so what is the requirement related to the conveyance?  If not I'd ask for one, that should explain what the underwriter is concerned about.

I did receive a Title commitment and the requirement is to wait six months From the date of death. That date of death was in April 2022. 

 That's a new one on me, I'd expect a requirement for a deed from anyone the underwriter thinks might have an interest, not wait out a statute of limitations.  I'd probably contact an agent for a different agent and see if they make the same requirement.

I spent hours on the  phone yesterday Calling Title companies trying to explain the situation. We finally found  different title company and explained the setting and they feel very optimistic of getting it closed in timely fashion.  We have already moved the file as of yesterday.


 I hope it goes through.

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Joe S.
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Joe S.
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Replied May 21 2022, 07:21
Quote from @Guy Gimenez:

It's absolutely an underwriter specific issue. There is statute requiring this. Move the file to another title company. 


 Did you mean to say “ there is no statue requiring this”?