If a parent or relative left you a California house through a revocable transfer on death (TOD) deed, the good news is that the house skips probate. The less obvious part is that a few legal steps still have to happen before you can sell, and the rules changed in 2022. This guide walks through what a TOD deed does, how to put the house in your name, what you owe the deceased owner’s heirs and creditors, and what to expect when you sell.

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What a TOD Deed Does

California’s revocable transfer on death deed is governed by Probate Code section 5600 and the sections that follow. It lets a homeowner name one or more beneficiaries who receive the property automatically when the owner dies, without going through probate. The owner keeps full control while alive and can revoke or change the deed at any time. The beneficiary has no ownership rights until the owner’s death.

A TOD deed can be used for a single-family home, a condo, a building with up to four residential units, or certain agricultural parcels of 40 acres or less. To be valid, the owner must sign it, have it notarized, and record it with the county recorder within 60 days after it was notarized.

What Changed in 2022

Senate Bill 315 updated the TOD deed law starting January 1, 2022. The main changes:

The law, which had been set to expire, was extended to January 1, 2032.
TOD deeds signed after the change need two witnesses, in addition to being notarized.
After the owner dies, the beneficiary must notify the owner’s heirs, with a copy of the deed and the death certificate.
The rules for how beneficiaries share responsibility for the deceased owner’s debts were clarified.

If the deed was signed before 2022, ask an attorney or title officer whether the older rules or the newer ones apply to your situation.

Step 1: Record the Affidavit of Death

The beneficiary doesn’t need to go to court. Instead, they record an affidavit with the county recorder that confirms the owner’s death, along with a certified copy of the death certificate. Most counties also want a Preliminary Change of Ownership Report filed with it. Once that’s recorded, the public record shows the beneficiary as the owner.

Step 2: Notify the Heirs

Under Probate Code §5681, the beneficiary must serve notice on the deceased owner’s heirs, including a copy of the TOD deed and the death certificate. The notice follows a form set out in the statute, and it tells heirs they have only 120 days from the date of the notice to file a fully effective challenge to the deed. If there are several beneficiaries, one of them can handle this for all.

This step matters for selling. A beneficiary who skips the notice for a known heir can be held responsible for damages. And title companies often look at whether notice was given, and when, before they’ll insure a sale.

Step 3: Understand the Debt Exposure

Because there’s no probate, there’s no court process for the deceased owner’s creditors to file claims by a set deadline. California deals with that by making the TOD beneficiary personally responsible for the owner’s unsecured debts, up to the value of the property received, after accounting for liens on it. If a probate case is opened for other reasons, the beneficiary can also be asked to contribute toward the estate’s debts and expenses.

Before you sell and spend the proceeds, find out what the owner owed: medical bills, credit cards, personal loans and any unpaid taxes. If the debts are significant, talk with a probate attorney first. If there are mortgages or liens on the house, those stay with the property, and someone needs to keep making payments until the sale closes.

Step 4: Check Title Before You List

Title insurance is where many TOD sales slow down. A title company has to be comfortable that the transfer is solid and that heirs or creditors aren’t likely to challenge it. Practices vary by company and by file. Some may want the heir notice served and the 120-day challenge period to pass, or may ask for extra documents before they’ll insure a sale. Call a title company early, before you sign a purchase contract, and ask exactly what it needs.

If there’s more than one beneficiary, all of them generally need to sign the sale documents. When siblings disagree about whether to sell, things can stall. Our article on what to do when siblings can’t agree on selling an inherited house covers your options.

Taxes to Plan For

Property taxes. Under Proposition 19, a transfer from parent to child is usually reassessed to current market value unless the child moves in as their primary residence within a year and meets other limits. Our guide to Prop 19 and inherited property explains how this works.
Capital gains. Inherited property generally gets a stepped-up basis, equal to its value at the date of death. If you sell soon after inheriting, the taxable gain is often small. A CPA can confirm this for your situation.

A Typical Order of Events

Order several certified copies of the death certificate.
Get a copy of the recorded TOD deed from the county recorder and confirm it was properly signed and recorded on time.
Record the affidavit of death and file the Preliminary Change of Ownership Report.
Serve the heir notice and keep proof of how and when you served it.
Gather information about the owner’s debts, any mortgage payoff, and property taxes.
Ask a title company what it needs to insure a sale.
Decide whether to list or sell for cash, and open escrow.

Selling From Out of State

Plenty of TOD beneficiaries live outside California. Most of the steps above can be handled by mail, through a local attorney, or through escrow, and documents can be signed in front of a mobile notary wherever you live. The bigger challenge is usually the house itself: someone has to secure it, keep insurance in place, manage utilities, and deal with repairs or a cleanout. Our guide for out-of-state heirs selling California property has more practical tips.

Where This Doesn’t Slow You Down

Many TOD sales go smoothly. If the owner had little or no debt, there’s only one beneficiary, the heirs are on board, and the title company is comfortable, you can usually list and sell on a normal timeline. In that case there’s often no need for probate and no reason to rush or accept a lower price.

A cash sale tends to help more when the house needs work, beneficiaries live far away, a mortgage or property tax bill is piling up, or the family simply wants a clean, quick ending. A cash buyer still needs clean title, but there’s no lender adding its own conditions on top of the title company’s.

Common Questions

Do I need probate to sell a house inherited through a TOD deed?

Usually not. Recording the affidavit of death and serving notice on the heirs is generally enough to establish your ownership. Probate may still come up if the estate has other assets or debts that need to be handled.

How soon can I sell after the owner dies?

You can start once the affidavit is recorded, but the title company decides when it will insure the sale. Some files close quickly. Others need the heir notice period to pass first.

What if the house has a mortgage?

The loan stays on the house and is paid off from the sale proceeds at closing. Keep payments current while you sell to avoid late fees or foreclosure.

Get a No-Obligation Offer

If you inherited a house through a TOD deed and want a straightforward sale, Cash Home Buyers CA can help. We either buy directly or bring a vetted cash buyer, and we’re happy to work with your attorney and title company on timing. Call us at (424) 435-2326 or request a no-obligation offer online.

You Inherited a House Through a TOD Deed in California — Now What?