How to Transfer Property Title to a Family Member in Texas

To transfer property title to a family member in Texas, you sign a notarized deed naming the family member as the new owner and file it with the county clerk in the county where the property sits. The mechanics are simple and Texas charges no state transfer tax, but the deed type you pick, a federal gift tax filing, the recipient’s future capital gains, any existing mortgage, and Medicaid eligibility all deserve attention before you sign anything.

Pick the Right Deed for the Situation

Texas recognizes several deed forms, and the choice shapes how much protection the new owner gets and when the transfer takes effect.

A general warranty deed gives the strongest protection. The grantor guarantees clean title going all the way back through the property’s history and remains legally responsible if a defect surfaces later. It also preserves the grantor’s existing title insurance, because the warranty obligations keep the policy’s continuation-of-coverage clause intact.

A special warranty deed only covers title problems that arose during the current owner’s time on title. Families use it when the giver is confident nothing happened on their watch but will not vouch for earlier owners.

A quitclaim deed transfers whatever interest the grantor may have, with no promise that the title is valid or that they own anything at all. Because it carries no warranties, it typically terminates the giver’s title insurance and can make it harder for the new owner to buy a new policy. Quitclaims are better suited to clearing up ownership questions (such as removing an ex-spouse) than to handing over a home.

A gift deed works like a warranty or special warranty deed but states on its face that no money changed hands. Noting the gift clarifies the transaction for tax authorities and future title searches.

If the goal is to keep control during life and pass the home at death without probate, Texas offers two tools. A Transfer on Death Deed lets the owner name a beneficiary who takes the property automatically at death, and it can be revoked at any time. It must be recorded before the owner dies to have any effect, and the property stays subject to estate creditor claims for two years after death.¹ A Lady Bird (enhanced life estate) deed achieves a similar result under Texas common law; the owner keeps full rights to sell, mortgage, or revoke, but only one beneficiary can be named with no alternates, and the deed may trigger a mortgage due-on-sale clause.²

What the Deed Must Contain

A valid Texas deed needs specific information. Missing or inconsistent details can cause the clerk to reject the filing or create title problems years later when the new owner tries to sell or refinance.

The full legal names and current mailing addresses of the grantor (giver) and grantee (recipient).
The formal legal description of the property, not just a street address. For platted land this is usually the lot, block, and subdivision name; for rural land it may be a metes-and-bounds survey. Copy it from the current deed or the county’s records.
Consideration. Even for a gift, the deed should state what the grantee gave in return. Family transfers commonly recite “ten dollars and other good and valuable consideration, including love and affection.”
Granting language that clearly expresses the intent to transfer ownership, such as “grant and convey” for a warranty deed.

Every name and boundary should match the existing title documents exactly. A misspelled middle name or a transposed lot number can break the chain of title.

Signing and Notarization

Texas law requires the grantor to sign the deed and have the signature acknowledged before a notary public.³ The notary verifies identity and confirms the signer is acting voluntarily. Without this acknowledgment, the county clerk will not accept the deed for recording. The grantee does not sign; only the person transferring the property executes the deed.

Anyone who hand-delivers the deed to the clerk’s office must also present a valid photo ID.³ Mailed filings do not trigger the in-person ID requirement, but still need the notarized acknowledgment.

Recording With the County Clerk

File the signed, notarized deed with the county clerk in the county where the property is located. Recording puts the public on notice that ownership has changed. Without it, the transfer may not hold up against third-party claims if the grantor later faces a lawsuit or tries to convey the property to someone else.

The statutory base fee is $5 for the first page and $4 for each additional page.⁴ Most counties add records preservation and management surcharges that bring the first-page total to roughly $25, plus $4 per added page. Call the clerk for the exact figure.

Most counties accept filings in person or by mail. Some offer electronic recording, but state law generally limits e-filing to licensed attorneys, title companies, banks, and similar authorized entities, so individual owners usually file in person or by mail. If you mail the deed, include a self-addressed stamped envelope so the clerk can return the recorded original. Record as soon as possible after signing: a delay creates serious exposure if the grantor dies, is sued, or incurs a lien before the public record catches up.

The Federal Gift Tax Filing

When you give property to a family member for less than fair market value, the IRS treats the difference as a gift. The 2026 annual gift tax exclusion is $19,000 per recipient.⁵ Since almost any home is worth more than that, the transfer will almost certainly require a Form 709 gift tax return.

Filing Form 709 does not mean you owe tax. The excess over the annual exclusion is subtracted from your lifetime gift and estate tax exemption, which is $15,000,000 for 2026.⁵ Most families will never owe actual gift tax, but the Form 709 must still be filed for any gift above $19,000.⁶ Married couples can split a gift and use both spouses’ exclusions, but both must file Form 709 to elect gift splitting.

How Lifetime Gifts Affect the Recipient’s Capital Gains

The timing of the transfer sets the recipient’s cost basis, and that number drives how much capital gains tax they owe if they sell. This is the most financially consequential part of the decision and the one families most often miss.

If you give property away during your lifetime, the recipient inherits your original basis. Buy a home for $80,000, give it to your child when it is worth $350,000, and your child’s basis stays at $80,000. If they sell for $350,000, they owe capital gains tax on the $270,000 difference.⁷

If the same property passes at death, through a will, a Transfer on Death Deed, or a Lady Bird deed, the recipient’s basis is “stepped up” to the fair market value on the date of death.⁸ Using the same numbers, the heir’s basis is $350,000, and an immediate sale produces no gain. For a family that plans to sell soon after the transfer, a TODD or Lady Bird deed can save tens of thousands over a lifetime gift.

If There’s a Mortgage on the Property

Transferring the deed does not pay off or move the mortgage. The original borrower remains on the loan unless the lender agrees to a release or the new owner refinances. If payments stop, the lender can foreclose regardless of whose name is on the deed.

Most mortgages contain a due-on-sale clause that lets the lender demand full repayment when ownership changes. Federal law blocks that enforcement in several family situations involving residential property with fewer than five units. Under the Garn-St. Germain Act, a lender cannot call the loan due for:

A transfer where the borrower’s spouse or children become an owner.
A transfer to a relative resulting from the borrower’s death.
A transfer resulting from a divorce decree or separation agreement.
A transfer on the death of a joint tenant.⁹

Note the limits. The living-transfer exception covers only the borrower’s spouse or children. A living transfer to a sibling, parent, niece, nephew, or other relative is not protected and could trigger a due-on-sale demand.⁹ Call the lender before transferring mortgaged property to any family member outside the protected categories.

Medicaid’s Five-Year Look-Back

Giving property to a family member can block the grantor from Medicaid-funded long-term care. When someone applies for Medicaid nursing home benefits, the state looks back 60 months for assets transferred for less than fair market value.¹⁰ An uncompensated transfer inside that window triggers a penalty period of ineligibility.

The penalty does not start on the date of the gift. It starts on the later of the transfer date or the date the applicant enters a nursing facility and would otherwise qualify for Medicaid. In practice, that timing rule means the penalty lands exactly when care is needed.

Texas also runs the Medicaid Estate Recovery Program, which can seek reimbursement from a deceased recipient’s estate for long-term care costs paid after age 55, with exceptions for a surviving spouse, a child under 21, a blind or permanently disabled child, and an unmarried adult child who lived in the home for at least one year before death.¹¹ Families transferring property to protect assets from future Medicaid claims need to plan well outside the five-year window.

After Recording: Appraisal District and Homestead Exemption

Once the deed is recorded, the new owner should notify the county appraisal district of the ownership change so property tax bills go to the right address. Bills that keep going to the former owner lead to missed payments and late penalties.

If the recipient will live in the property as their primary residence, they should apply for a homestead exemption under Texas Tax Code Section 11.13.¹² The exemption lowers taxable value and caps annual appraised-value increases. To get the exemption for the current tax year, file with the chief appraiser by April 30. A late application may be filed up to two years afterward, but the exemption only applies from the year it is granted.¹³ Most county appraisal districts post the application and change-of-ownership forms online.

1
Justia. Texas Estates Code Chapter 114 – Transfer on Death Deed
2
Texas State Law Library. What Is a Lady Bird Deed?
3
State of Texas. Texas Property Code Chapter 12 – Recording of Instruments
4
State of Texas. Texas Local Government Code Section 118.011 – Fee Schedule
5
Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026
6
Internal Revenue Service. Instructions for Form 709
7
eCFR. 26 CFR 1.1015-1 – Basis of Property Acquired by Gift
8
Internal Revenue Service. Gifts and Inheritances
9
Office of the Law Revision Counsel. 12 U.S. Code 1701j-3 – Preemption of Due-on-Sale Prohibitions
10
CMS. Transfer of Assets in the Medicaid Program
11
Texas Health and Human Services. Your Guide to the Medicaid Estate Recovery Program
12
State of Texas. Texas Tax Code Chapter 11 – Taxable Property and Exemptions
13
Texas Comptroller. Residence Homestead Exemptions