How to Sell a House for Cash in Texas: A Grand Prairie Seller's Checklist

Most guides on how to sell a house for cash describe what the buyer and the title company do. This one is about the seller's side: what you gather before you ask for an offer, who has to sign, how to read two offers side by side, and what you can do to keep the closing on schedule. The rules are Texas rules, and a Grand Prairie house is used as the worked example near the end.

A disclosure up front: I work with House Buyers Texas, a company that buys houses for cash. Nothing here is legal advice. Where a statute is quoted, the link goes to the official text so you can read it yourself.

What should you gather before you ask how to sell a house for cash?

Gather the papers that answer the questions a title company will ask anyway. Having them ready means fewer surprises after you sign.

Start with how you hold title. Find your deed, or at least know whose names are on it. If the house came to you through a death, collect the death certificate and any will, probate order or heirship paperwork, because the title company has to see a clear chain of ownership before it will insure the sale.

Next, the money owed against the house. Write down your mortgage lender and loan number, plus any home equity loan. The title company will ask each lender for a payoff statement, and those loans are paid from your proceeds at closing. If you know of other liens, such as a contractor's lien, an IRS lien or a court judgment, write those down too. The title search will find them, and it is better to hear about them from you first.

Then the condition of the house. Texas sellers of a single-family home generally have to fill out a written disclosure of what they know about the property, so make a plain list of known problems: the roof, the foundation, plumbing, past water or fire damage. Note the year the house was built. A home built before 1978 needs a lead-based paint disclosure under federal law, even in an as-is sale.

Finally, the smaller items: recent property tax statements, your HOA's contact information if you have one, and any survey you received when you bought the house.

Who has to sign the contract and the deed?

Everyone who owns the house has to sign. If it is your homestead and you are married, your spouse has to sign as well, even if the house is in your name alone.

That second rule surprises people. Texas Family Code §5.001 bars one spouse from selling or encumbering the homestead without the other spouse's joinder, whether the house is separate or community property. If a spouse cannot be found or is incapacitated, the alternatives run through a court, which takes time. So if two signatures are needed, settle that before you accept an offer, not the week of closing.

Inherited houses add a layer. Every heir with a share may need to sign, or the estate's executor may sign with the authority a probate court gave them. Which one applies depends on how the estate was handled, and the title company will tell you what it needs.

How do you compare two cash offers line by line?

Compare what you walk away with and how firmly the buyer is committed, not just the headline price. Most Texas cash buyers use the Texas Real Estate Commission's promulgated one-to-four family resale contract, so two offers usually have the same blanks filled in differently. Read these blanks side by side:

Earnest money and option fee. Under the TREC contract, both are delivered to the title company, not to the buyer's own account. A buyer who asks you to accept the money any other way is a reason to slow down.

The option period. During this window the buyer can cancel for any reason. A short option period means the buyer is committed sooner. A long one gives the buyer more time to walk away while your house sits off the market.

The closing date and who pays which costs. The contract spells out who pays for the title policy and other closing costs. Two offers with the same price can leave you with different amounts.

Whether the buyer may assign the contract. Some cash buyers sign the contract and then sell their position to another investor. Texas allows that, but it requires notice in writing. Texas Property Code §5.0205 says that before assigning, the person must disclose in writing to "the owner of the real property that the person intends to sell an option or assign an interest in a contract." If an offer names the buyer "and/or assigns," ask directly whether they plan to close themselves.

What does the seller do while the title company works?

Answer quickly and sign what is asked. The title company does most of the work, but most delays happen when it is waiting on the seller.

After the contract is signed, the title company opens a file, searches the county records for liens, judgments and ownership problems, and issues a title commitment. The commitment lists what must be cleared before closing. A mortgage is routine: the lender sends a payoff figure and the loan is paid off at the closing table. A tax lien or judgment is usually paid from your proceeds too. If the liens add up to more than the sale price, the sale may not be able to close as written, so tell the buyer early about anything large.

Your other job is the seller's disclosure. Texas Property Code §5.008 says a seller of residential property with one dwelling unit "shall give to the purchaser of the property a written notice" describing its condition. That duty does not go away because a buyer agrees to take the house as-is. Fill it out honestly and early.

What does this look like for a Grand Prairie house?

Here is a made-up but typical case. A married couple owns a 1970s brick ranch house in Grand Prairie. It is their homestead, there is a mortgage, and years ago a roofer filed a lien over a disputed bill. They want a cash sale because the foundation needs work they cannot afford.

Before calling anyone, they find their deed, their lender's name and loan number, and a list of what is wrong with the house. Because it was built before 1978, they expect the lead-based paint form. They agree up front that both of them will sign.

Two offers come in. One has a slightly higher price, a long option period and an "and/or assigns" buyer line. The other is a little lower, with a short option period and a buyer who says in writing that they will close the deal themselves. The couple works out what each leaves them after closing costs and chooses with that number in front of them.

The title search finds the roofer's lien. Because they mentioned it on day one, the title company asks the roofer for a payoff and release right away instead of finding it the week of closing. The mortgage and the lien are paid from the proceeds, and the couple receives the rest.

If you own a house there and want to see how one buyer describes the local process, the we buy houses Grand Prairie page from House Buyers Texas walks through it. Whoever you talk to, bring the checklist above, ask how they will handle earnest money and assignment, and read the contract before you sign.

This article is general information about Texas law and the home-selling process, not legal advice. For questions about your own title, estate or marriage, talk to a Texas real estate attorney.