Legal Question in Family Law in Texas

The lien can be satisfied at closing, just like the lien your mortgage lender has on the property. Unless all the liens added together exceed the sales proceeds, I don't see why one lien would have to be extinguished prior to closing, but not another.

I would talk to the title company about your special warranty deed gambit. The only thing that will prevent the sale from closing is if the title company refuses to issue title insurance. You don't want to do anything to mess that up. They might refuse to issue a policy in the face of a flurry of deeds aimed only at defeating state action. Moreover, even if the deed trick worked, it would take a miracle for the state to file a release of their lien any time soon.

Your best bet is to face the issue straight on with the title company. Not to mention that the state might reasonably construe your deed filing as a ploy to defraud the state and therefore decide to tie your house up in litigation for the next 2 years.