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That's actually pretty simple. The seller would have to execute a deed giving the buyer the property. This can be a quitclaim deed, or a warranty deed.
A warranty deed is where the seller guarantees that he has title to the property and that he is transferring it.
A quitclaim deed is where the seller is not guaranteeing that he owns anything, but what he does own, he is transferring.
You can find the forms here: http://www.uslegalforms.com/deedforms/texas-deed-forms.htm
Once the form is filed out, with the transfer language, the legal description of the property (which should match the deed that the seller has that gave him rights to the property initially), and the seller signs it (it should be notarized as well), title passes at that moment. It should be filed, but it's not necessary to do so to pass title to the buyer.
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A now wants title to the property to go to his daughter. Q: Can he simply substitute his daughter for himself in the deed or will he have to incur additional expenses by first transferring & recording the property in his name & then later deeding the property to his daughter? (remember he bought the property a couple of months ago).
He could have the property go to his daughter, directing B to issue it to his daughter instead of him.
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So it will not matter that contract states A bought property & not daughter?
That's correct. Now the daughter would not be able to enforce the contract, should the seller breach (since she was not a party), but she does not have to be on the contract for the buyer to direct the seller to transfer to her name.
I am going to a auction first time to bid on a live