Gift deeds are one option in Texas for transferring real property to someone who is not included on the original deed. They can be either a special warranty deed or a general warranty deed. The gift deed transfers property ownership as a gift. The person making the gift, the grantor, wants nothing in return. While the transfer of property may appear straightforward, appropriate documentation of a gift deed is essential to verify that the transfer is legal.
According to the Texas Property Code, a deed must
- Be in writing
- Be signed by the grantor
- Include a legal description of the property
- Be delivered
The following must be included in the gift deed to be valid:
- Donative intent, or the grantor’s intent to gift the property;
- Transfer of the property to the grantee;
- Acceptance of the donation by the grantee
The most significant aspect in assessing the legitimacy of a gift deed is the intent of the parties. Because a gift deed is a voluntary transfer of real property, the stated consideration is frequently “love of, and affection for, the grantee.” If the gift deed clearly and expressly says that the property is turned over to the grantee and no other parties, the property passes to the grantee as soon as the gift deed is delivered.
If you get real estate through a gift deed, you are responsible for the property’s taxes, liens, and judgments. This covers the upkeep of deterioration. When family members live in different cities or states, they often don’t have the time to look after a property. As a result of the upkeep and maintenance, property presents can become costly and time demanding. The city may fine you if you leave your new property’s grass uncut. Gifts are not counted as income. The income from the sale of the home is taxable. When creating a gift deed, it’s crucial to determine if the home or property will be subject to federal gift taxation.
If you have received property through a gift deed or are thinking of doing so, it is worth it to discuss the legal implications beforehand. We invite you to contact us to speak with an experienced and board-certified real estate attorney. Our number is 713-572-4900.