Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
Should you? YES! Required by law? Let's just say you wouldn't face criminal penalties.
Would you face civil penalties? Perhaps if the new owner is told they need to pay for a fence they didn't ask for that was there when they bought it because a a fence builder put a mechanic's lien on it.
However you may want a mortgage originator and title company to do the paper work to stay in compliance with the recent SAFE Act.
If it's a land contract then the seller still retains legal title. If it's a promissory note and deed of trust (or mortgage) then you do it just like the bank would.
If it were in California you actually COULD NOT use a warranty deed because we took the land from the Mexicans and ever since the Mexican American war from 1846-1848 was ended by the Treaty of Guadalupe Hidalgo we have not been able warrant clear title.
I hope that was both an informative and entertaining answer! If your sister home seller needs to sell that monthly payment stream, I can buy it from them if they agree to the current market price! (...and I can pay you both a referral fee too!)
For pricing visit: http://cash4promissorynotes.com/default.aspx and click on "Get Pricing"