# Texas Title Requirements: Common Items and Satisfaction Methods

## Table of Contents
1. [Lien Releases](#lien-releases)
2. [Tax and Assessment Items](#tax-and-assessment-items)
3. [Affidavits and Certifications](#affidavits-and-certifications)
4. [Entity Documentation](#entity-documentation)
5. [Probate and Estate Items](#probate-and-estate-items)
6. [HOA Requirements](#hoa-requirements)
7. [Survey Requirements](#survey-requirements)
8. [Name Discrepancies](#name-discrepancies)

## Lien Releases

### Deed of Trust Release

**Requirement**: Release of Deed of Trust dated ___, recorded ___

**Satisfaction**:
- Full release from lienholder
- Must be recorded in county real property records
- Wire payoff at closing with release to follow
- If lienholder defunct: affidavit of non-renewal, research for successor

**Common issues**:
- Servicer vs. lienholder mismatch
- Lost note affidavits required
- MERS-registered loans: release from MERS or nominee
- HELOCs: verify zero balance AND release

### Mechanic's Lien / Contractor's Lien

**Requirement**: Release of potential mechanic's lien claims

**Satisfaction options**:
1. **Lien period expired**: 4 months from completion/abandonment for residential; file affidavit
2. **Affidavit of completion**: Owner certifies work complete, all bills paid
3. **Contractor's lien waivers**: From general contractor and all subs (conditional vs. unconditional)
4. **Funds escrowed**: Title company holds funds until lien period expires
5. **Indemnity**: Owner/contractor indemnifies title company

**Texas particulars**:
- Original contractor: 4 months to perfect lien
- Subcontractors: Must send notices per Tex. Prop. Code Chapter 53
- Residential retainage requirements

### Judgment Lien

**Requirement**: Release of judgment lien, Case No. ___, [Court]

**Satisfaction**:
1. **Release of judgment**: Signed by judgment creditor, filed with court and recorded
2. **Satisfaction of judgment**: Payment plus release
3. **Abstract of judgment**: Must be released in each county where recorded
4. **Payoff at closing**: Wire to judgment creditor's attorney with release to follow

**Dormancy**: Texas judgments enforceable 10 years, renewable. Check dormancy status.

### Federal Tax Lien

**Requirement**: Release of federal tax lien, IRS against [Taxpayer]

**Satisfaction**:
- Full payment with IRS Certificate of Release
- IRS subordination agreement
- Closing with IRS payoff; release follows (30-45 days typical)
- Verify filing jurisdiction (county and potentially state)

**120-day right of redemption**: IRS has 120 days post-sale to redeem. Discuss with client.

### State Tax Lien / Franchise Tax

**Requirement**: Release of state tax lien / franchise tax lien

**Satisfaction**:
- Texas Comptroller Certificate of Account Status (for franchise tax)
- Payment with release
- Verify entity in good standing (SOS check)

### HOA Assessment Lien

**Requirement**: Release of HOA assessment lien

**Satisfaction**:
- Payoff from HOA management company
- Updated resale certificate showing current status
- Verify no pending special assessments
- Subordination agreement if lien to remain

## Tax and Assessment Items

### Current Year Ad Valorem Taxes

**Requirement**: Payment of current year taxes

**Satisfaction**:
- Proration at closing (seller's share paid at closing)
- Buyer assumes future payments
- If delinquent: full payment at closing
- Tax certificate showing amounts due

### Prior Year Delinquent Taxes

**Requirement**: Payment of prior year delinquent taxes plus penalties/interest

**Satisfaction**:
- Full payoff including P&I
- Tax certificate showing all years
- Check for tax sales or pending foreclosure

### MUD/PID/Special Assessments

**Requirement**: Disclosure and/or payment of special district assessments

**Types**:
- **MUD**: Municipal Utility District (water, sewer, drainage)
- **PID**: Public Improvement District
- **TIRZ**: Tax Increment Reinvestment Zone
- **ESD**: Emergency Services District

**Satisfaction**:
- Disclosure to buyer (required by statute)
- Certificate from district showing status
- Payoff of delinquent amounts
- Ongoing assessments: buyer assumes

### Rollback Taxes

**Requirement**: Payment or disclosure of potential agricultural/open-space rollback taxes

**Trigger**: Change of use from agricultural to non-agricultural

**Satisfaction options**:
1. **Seller pays at closing**: Full 5-year rollback
2. **Buyer assumes**: Indemnification agreement
3. **Holdback**: Escrow funds pending determination

**Texas specifics**:
- 5-year rollback period (plus interest)
- Triggered by change of use, not sale
- Ag exemption must be reapplied annually

## Affidavits and Certifications

### Seller's Affidavit (T-47 Affidavit)

**Requirement**: T-47 Affidavit as to Debts, Liens, Possession, and Indemnification

**Standard form covers**:
- No unrecorded liens, judgments, or divorces
- No parties in possession other than seller
- No improvements within 90 days (or disclosure)
- No unrecorded easements
- Marital status certification

### Marital Status Affidavit

**Requirement**: Affidavit of marital status

**When required**:
- Individual seller with possible spouse
- Name on title differs from current name
- Community property issues

**Content**:
- Current marital status
- Status at time of acquisition
- Identity of spouse(s) if applicable
- Source of funds (if claiming separate property)

### Heirship Affidavit

**Requirement**: Affidavit of heirship for [Decedent]

**When required**:
- Deceased titleholder
- No probate or insufficient probate
- Intestate succession

**Requirements**:
- Two disinterested witnesses (not heirs)
- Family history and heirs
- Recorded in deed records
- 5-year waiting period for full marketability (Tex. Est. Code § 203.001)

**Best practice**: Supplement with Affidavit of Heirship and independent research

### Identity Affidavit

**Requirement**: Affidavit confirming identity (for judgment/lien searches)

**When required**:
- Common name with potential judgment matches
- Name variations in chain

**Content**:
- Full legal name
- Prior names, AKAs
- SSN (last 4) for verification
- Confirmation not the judgment debtor

### Gap Indemnity Affidavit

**Requirement**: Indemnification for gap between title effective date and closing

**Standard practice**: Seller indemnifies title company for any adverse matters filed between effective date and recording.

## Entity Documentation

### LLC Documentation

**Requirement**: Evidence of authority for LLC to convey

**Documents needed**:
1. **Certificate of Formation**: Filed with Texas SOS
2. **Company Agreement** (Operating Agreement): Shows management structure
3. **Certificate of Existence**: From Texas SOS (good standing)
4. **Resolution/Consent**: Authorizing the transaction
5. **Incumbency Certificate**: Confirming managers/members

**Manager-managed vs. Member-managed**:
- Manager-managed: Manager(s) sign
- Member-managed: All members sign (unless authority delegated)

### Corporation Documentation

**Requirement**: Evidence of corporate authority

**Documents needed**:
1. **Articles/Certificate of Incorporation**
2. **Bylaws**: Authority provisions
3. **Certificate of Existence**: Good standing from SOS
4. **Board Resolution**: Authorizing transaction and signatories
5. **Incumbency Certificate**: Confirming officers

### Partnership Documentation

**Requirement**: Evidence of partnership authority

**General Partnership**:
- Partnership Agreement
- Resolution/consent of partners

**Limited Partnership**:
- Certificate of Limited Partnership
- Partnership Agreement
- General partner authority documentation
- Certificate of Existence

### Trust Documentation

**Requirement**: Evidence of trustee authority

**Documents needed**:
1. **Trust instrument** (or Certification of Trust)
2. **Trustee acceptance**
3. **Evidence trustee is current and acting**
4. **Trust authority to hold/convey real property**

**Certification of Trust alternative**:
- Tex. Prop. Code § 114.086
- Contains essential info without full trust disclosure
- Must include: trust existence, trustee identity, powers

### Foreign Entity Qualification

**Requirement**: Foreign entity registered to do business in Texas

**Satisfaction**:
- Certificate of Authority from Texas SOS
- Good standing certificate from home state
- Texas registered agent designation

## Probate and Estate Items

### Testate Estate (With Will)

**Requirement**: Evidence of authority to convey from estate

**Standard probate**:
1. **Letters Testamentary**: Appoint executor
2. **Order Admitting Will**: Court validation
3. **Independent Administration**: Executor can act without court approval per transaction
4. **Court Order**: If dependent administration, need court approval

**Muniment of Title**:
- Simplified Texas procedure
- Will admitted without administration
- No executor letters; heirs take directly
- Order serves as link in chain

### Intestate Estate (No Will)

**Requirements vary by situation**:

**Full administration**:
- Letters of Administration
- Determination of Heirship
- Court approval for sale

**Small estate affidavit** (Tex. Est. Code § 205):
- Estate value under $75,000 (excluding homestead)
- No pending administration
- 30 days post-death

**Affidavit of Heirship**:
- Alternative when no administration
- 5-year title waiting period
- Two disinterested witnesses

### Life Estate/Remainder

**Requirement**: Joinder of all interest holders

**Life tenant conveyance**: Only conveys life estate (terminates at death)
**Fee simple**: Requires life tenant + all remaindermen

**Verify**:
- Identity of all remaindermen
- Whether remainder is vested or contingent
- Powers of appointment (if any)

## HOA Requirements

### Resale Certificate

**Requirement**: Current HOA Resale Certificate

**Texas requirement** (Tex. Prop. Code Chapter 207):
- HOA must provide within 10 business days
- Contains: assessments, violations, pending litigation, reserves
- Buyer may terminate within specified period

**Contents to verify**:
- Assessment amounts and status
- Special assessments (pending or approved)
- Violations and fines
- Transfer fees
- Right of first refusal (if any)

### Estoppel Certificate

**Requirement**: HOA estoppel certificate (for commercial/lenders)

**Confirms**:
- No defaults
- Assessment amounts
- No pending special assessments
- Insurance information

### Transfer/Move-in Fees

**Common charges**:
- Transfer fee (varies)
- Capital contribution
- Working capital deposit
- Move-in fee
- Processing fee

**Negotiating point**: Who pays varies by market

## Survey Requirements

### New Survey Required

**When required**:
- Lender requirement
- Prior survey outdated (>90 days for construction)
- Changes to improvements
- Boundary concerns

**Survey requirements**:
- ALTA/NSPS survey (commercial)
- Staked survey (residential typical)
- Certified to: buyer, lender, title company

### Existing Survey Acceptable

**Conditions**:
- Title company accepts (typical if <5 years, no changes)
- T-47 affidavit certifies no changes
- Lender approval
- Re-certification or affidavit of no change

### Survey Affidavit in Lieu

**T-47 affidavit may satisfy** if:
- Lender doesn't require new survey
- No known boundary issues
- Existing survey shows no issues
- Owner certifies no changes

## Statutory Presumptions and Curative Provisions

### Prior Unreleased Liens (Tex. Prop. Code § 12.017)

**4-year release presumption**:
- Lien presumed released if ALL conditions met:
  1. More than 4 years since final maturity date
  2. No extension agreement recorded
  3. No foreclosure or suit filed
  4. No payment/acknowledgment recorded

**10-year presumption** (if no maturity date):
- Same conditions as above
- 10 years from recording date

**Title company practice**:
- May require affidavit of non-renewal
- Research for assignments/modifications/extensions
- Consider underwriter approval for indemnity within period

### Ancient Mortgages/Deeds of Trust

**Curative approach**:
- Research chain for releases
- Contact successor servicers
- Lost note/satisfaction affidavit procedures
- Quiet title if necessary

### Lis Pendens (Tex. Prop. Code § 12.007)

**Effect**:
- Constructive notice of pending litigation
- Binds subsequent purchasers to outcome
- Expires 3 years unless extended

**Removal**:
- Final judgment/dismissal
- Release from filing party
- Expungement by court order

### Master Deed of Trust (Tex. Prop. Code § 13.001)

**Recording requirements**:
- Master deed of trust must be recorded
- Incorporation by reference allowed
- Short form must reference recording info

## Name Discrepancies

### Variations to Address

- **Middle names/initials**: John Smith vs. John A. Smith
- **Suffixes**: Jr., Sr., III
- **Nicknames**: Robert vs. Bob, William vs. Bill
- **Maiden/married names**: Name changes
- **Spelling variations**: Johnson vs. Johnsen
- **"Et ux" / "Et vir"**: Generic spouse references

### Resolution Methods

1. **Name affidavit**: Confirms same person, lists all variations
2. **Corrective deed**: If prior deed has error
3. **Judgment search clarification**: Identity affidavit for judgment concerns
4. **Supporting documents**: Marriage certificate, divorce decree, legal name change order

### Recording Requirements

Name affidavits should:
- State all name variations
- Confirm identity (DOB, SSN last 4 if appropriate)
- Be notarized
- Be recorded with deed