League City, TX asked in Contracts and Real Estate Law for Texas

Q: Can you sell a vacant home in need of repair in Texas as-is cash by just signing the deed of trust over and take cash?

As-is sale basically going to be renovated and sold by the buyer( it is not a professional house flipper )

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2 Lawyer Answers

A: Hold on!

Deed of Trust?!? That is an instrument no rookie should mess with. Do not think you know what you are doing with a Deed of Trust. You don't.

You better go see a lawyer.

Don't do it.

John Michael Frick
John Michael Frick
Answered
  • Frisco, TX
  • Licensed in Texas

A: A Deed of Trust commemorates a security interest in a piece of real estate, typically a mortgage debt. The holder of the Deed of Trust does not own the home; it only owns a security interest in the home. It is unlikely that you are the party to whom the debt is owed.

You can transfer title to the home to somebody else with a quit claim deed or a warranty deed, subject to the debt secured by the Deed of Trust. You would likely want the buyer to also sign a Deed of Trust to Secure Assumption, which would require the buyer to pay the existing debt off while allowing you to foreclose and regain ownership of the home if the buyer doesn't. Until the debt is paid off, however, the original borrower (most likely you) is still personally obligated to the original creditor.

You would probably be able to complete this transaction using a title company, rather than hiring your own private attorney.

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