Tex. Est. Code Section 114.104
Transfer on Death Deed Property Subject to Liens and Encumbrances at Transferor’s Death; Creditors’ Claims

(a)

Subject to Section 13.001 (Validity of Unrecorded Instrument), Property Code, a beneficiary takes the real property subject to all conveyances, encumbrances, assignments, contracts, mortgages, liens, and other interests to which the real property is subject at the transferor’s death. For purposes of this subsection and Section 13.001 (Validity of Unrecorded Instrument), Property Code, the recording of the transfer on death deed is considered to have occurred at the transferor’s death.

(b)

If a personal representative has been appointed for the transferor’s estate, an administration of the estate has been opened, and the real property transferring under a transfer on death deed is subject to a lien or security interest, including a deed of trust or mortgage, the personal representative shall give notice to the creditor of the transferor as the personal representative would any other secured creditor under Section 308.053 (Required Notice to Secured Creditor). The creditor shall then make an election under Section 355.151 (Option to Treat Claim as Matured Secured Claim or Preferred Debt and Lien) in the period prescribed by Section 355.152 (Period for Specifying Treatment of Secured Claim) to have the claim treated as a matured secured claim or a preferred debt and lien claim, and the claim is subject to the claims procedures prescribed by this section.

(c)

If the secured creditor elects to have the claim treated as a preferred debt and lien claim, Sections 355.154 (Preferred Debt and Lien) and 355.155 (Payment of Maturities on Preferred Debt and Lien) apply as if the transfer on death deed were a devise made in a will, and the creditor may not pursue any other claims or remedies for any deficiency against the transferor’s estate.

(d)

If the secured creditor elects to have the claim treated as a matured secured claim, Section 355.153 (Payment of Matured Secured Claim) applies as if the transfer on death deed were a devise made in a will, and the claim is subject to the procedural provisions of this title governing creditor claims.
Added by Acts 2015, 84th Leg., R.S., Ch. 841 (S.B. 462), Sec. 1, eff. September 1, 2015.

Source: Section 114.104 — Transfer on Death Deed Property Subject to Liens and Encumbrances at Transferor's Death; Creditors' Claims, https://statutes.­capitol.­texas.­gov/Docs/ES/htm/ES.­114.­htm#114.­104 (accessed Jun. 5, 2024).

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Accessed:
Jun. 5, 2024

§ 114.104’s source at texas​.gov