How a remote Texas closing works

The title company is the escrow agent and the closer. It opens the file, orders the search, issues the commitment, works through the requirements, prepares the settlement statement, and records the deed with the county clerk. Your part is signing a deed and a handful of related documents before a notary, and providing wire instructions.

Remote online notarization is available and widely used, which removes the last reason to travel. If you would rather use a power of attorney, send the proposed form to the title company first — an unapproved POA discovered at closing is a common and avoidable delay.

What out-of-state owners usually have

  • A house inherited from a parent who lived in Texas
  • A rental bought during a growth cycle and managed at a distance
  • A former home kept after a job relocation
  • Property from a divorce that neither party lives in
  • A flip or investment purchased sight-unseen that did not work out
  • Vacant land or a lot bought years ago and never built on

The problems distance creates

Mail is the first one. Appraisal districts, tax offices, and code enforcement send notices to the address on file, and when that address is stale, an owner can be months behind on a tax bill or a citation without knowing. Vacant-property citations and accruing municipal charges frequently come as a surprise to absentee owners.

Then condition. Nobody notices a roof leak, a slab leak, or a failed HVAC in an empty house until it has done real damage, and the 2021 freeze showed how fast that can happen. Property managers vary, and a house that has not been walked in a year is usually worse than the last report suggested.

Texas tax treatment for a non-resident seller

Texas has no state income tax and therefore no state capital gains tax on the sale of Texas real estate. That is simpler than most states, and it means the tax planning is federal. An inherited property normally receives a stepped-up basis as of the date of death, and a rental carries depreciation recapture. Your own state may tax the gain as a resident there.

If the seller is a foreign person, FIRPTA withholding may apply and the title company handles the paperwork. For anything beyond that, talk to a CPA — the sequence matters, particularly if a 1031 exchange is in play.

Frequently asked questions

Do I have to travel to Texas to sell my house?

No. The title company arranges signing before a notary where you live, or a remote online notarization, and wires your proceeds.

Can I use a power of attorney?

Sometimes, but the title company has to approve the form in advance. Do not sign one and assume it will be accepted.

Does Texas tax my gain if I live in another state?

Texas has no state income tax, so there is no state capital gains tax on the sale. Federal rules apply, and your home state may tax the gain.

I have not seen the property in years. Is that a problem?

No. We will look at it. Tell us what you know and we will fill in the rest rather than expecting you to.

What if there are unpaid taxes or citations I did not know about?

They will surface in the title search and be paid from the closing proceeds. It is better to find them now than later.

This page is general information about selling property in Texas, not legal, tax, or financial advice. Laws change and every situation is different, so talk with a qualified Texas professional about yours.