Texas Real Estate Law - SAE Champions School Of Real Estate

Nothing Further Certificate

-Review of records to see that nothing further has happened since owner bought or lender made last loan -Not Title Insurance -No construction liens etc

Acceptance of an Offer - Terms and Conditions

1. Intent 2. Must be unqualified, unconditional acceptance 3. Communication that they accepted the offer

Urban homestead rules

1. located within the municipalities or extraterritorial jurisdiction 2. served by police protection , paid volunteer fire protection Following under electrical, sewer, storm, water

Imputed Notice

3rd type of legal notice. What an agency knows is binding on the principal because of the agency relationship they have entered into

right of first refusal

A clause allowing the tenant the opportunity to buy the property before the owner accepts an offer from another party.

Reservation

A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another.

Deed Term- Covenants

A clause in a deed that are usually given or received as consideration for the transfer of title. A deed may contain a covenant that as a part of the conveyance the grantee agrees not to construct any noxious or odorous industrial plants on prop. CONDITION!

contingency

A contingency clause in a real estate deal gives the parties the right to back out of their contract under specified circumstances that are negotiated between the buyer and seller.

Void Contract

A contract having no legal force or binding effect.

Unenforceable Contract

A contract in which the essential elements to create a valid contract are met but there is some legal defense to the enforcement of the contract.

Voidable Contract

A contract that may be legally avoided (canceled, or annulled) at the option of one of the parties.

Fair Credit Reporting Act

A federal law that established procedures that consumer-reporting agencies must follow in order to ensure that records are confidential, accurate, relevant and properly used.

Mortgagee

A lender who receives a pledge of property to secure a debt.

Title Commitment

A letter from a title insurance company in which it commits to issuing a title insurance policy on the insured subject to certain conditions and requirements.

Lessee

A party that has made contractual arrangements to use another party's asset for a period at an agreed price.

Contract for Deed

A sales arrangement in which the actual delivery of the deed conveying ownership will future date the buyer takes possession of the property. This allows the seller to finance the sale through installment payments and to have recourse to the property in case of default by the buyer/borrower.

S corporation

A unique government creation that looks like a corporation but is taxed like sole proprietorships and partnerships

HOMESTEAD Rights in TX

According to the lawyers who handle real estate issues, Texas Homestead Laws state that a family or individual's homestead is protected from seizure or forced sale to pay for outstanding debts brought to the courts.

Acknowledgment

Acknowledgement is a legal term that refers to a declaration that affirms a person acted on their own free will. In the real estate lending industry, acknowledgement is often required for a deed and other papers.

Truth in Lending Act

An act which requires lenders to inform borrowers of all direct, indirect and true costs of credit.

Adverse Possession

An actual and visible appropriation of real property commenced and continued under a claim of rights inconsistent with and hostile claim to another person.

Estates involved in Easement Appurtenant

An easement appurtenant is created for the benefit of another tract of land. There must be two owners involved this owner is known as Servient Estate.

excutory contract

An executory contract is when one or both parties have obligations still to be performed. For example, a sales contract is an executory contract until the buyer has obtained financing-there are still obligations remaining to be performed before the contract can be considered executed.

Real Estate financing and the inclusion of personal property in the transaction

Bill of Sale

Intermediary Relationships

Broker reps both the buyer and seller Broker remains neutral and avoids negotiating. The broker must first get written consent of both parties

CERCLA

Comprehensive Environmental Response, Compensation, and Liability Act

Condition

Conditions can be either precedent or subsequent. A condition precedent is something that must occur before an obligation exists. ... An example of such a condition is that the obligation of a buyer to complete a purchase may be excused if a property is damaged by a natural disaster or fire before the close of escrow.

Homestead Termination in TEXAS

Death, terminates claimants but not entire homestead. Alienation sale of house or buying a new home. Abandonment not easy.

Ownership of Water TX

Department of water recourses Texas surface water is owned by the state and is held by the state in trust for the public. See Texas Water Code Section 11.021, 11.0235. With only a handful of exceptions discussed below, in order to use this state-owned water, a person must file a permit and obtain a "water right" from the Texas Commission on Environmental Quality.

Government Rights in Land - PETE

Eminent Domain - Private Land can be taken be legislature for Public Use. ED is done through a process called condemnation.

Deed Term-Exceptions

Exceptions convey limitations to title such as mineral rights, air rights and deed restrictions.

Types of Ownership Estates

Fee Simple Estates- entirety, sole owner Life Estate- estate for life of person Remainder Estate- Future date of the estate

Public Notice

For a nominal fee, newspapers carry these legal changes in business, personal relationships, public governmental reports, notices by private citizens and organizations, and financial reports.

Partnership Entities

General Partnerships, Joint Ventures, limited liability partnerships, limited partnerships

CERCLA Liability Rules

Hazardous Substance Liability 1. Owner 2. Prop Manager 3. Cleaner of the Facility

Recording Requirements

In Texas, a deed must be in writing and signed by the person transferring the land, otherwise known as the "grantor." The person the grantor is transferring the land to is known as the "grantee." No particular words must be used in order to constitute a legally effective

Title Policy

Insurance policy against losses resulting from defects in title, makes sure that the sellers lien is good

Recording

Is a document the simplest method of creating notice. 4 basic requirements that an instrument must have to be a recored property. 1. Orignal instrument 2. Must be in English 3. The instrument must be properly acknowledged 4. Must be recored in the county where prop is located 5. Must have social and DL in bold print 12 letters

Lis Pendes

Law is Pending

Title Theory

Legal concept that vests title to mortgaged property in the mortgagee (lender) or a third party.

Constructive Notice

Made public record the world is legally on notice given to the world by recorded documents.

Mineral Rights- Features, Benefits, Income

Mineral rights in Texas are the rights to mineral deposits that exist under the surface of a parcel of property. This right normally belongs to the owner of the surface estate; however, in Texas those rights can be transferred through sale or lease to a second party.

Death on the Property- Disclosed not Disclosed

NOT- suicide, natural causes or accidents unrelated to the condition of property. YES- condition of premises, murder, unnatural

mortgaee title policy

New owner also receives a title policy insuring a clean title

Court Claims Limits

No more than 10k

Causes of Forces sale of TX Homestead

Non payment of Maintenance Liens, Bankruptcy, Homestead may not be a Yacht, Violates Drug Laws, Intent to defraud a creditor, A lien existed prior to designation, Renouncing Homestead rights before they were instated. Limited homestead to 125k if claimant filed for bankruptcy within 1,215 days after acquiring homestead.

Types of Ownership

Ownership in Severalty, Tenancy in Common, Joint Tenancy

Actual Notice

Purchaser or creditor express information or fact; that which is known; direct knowledge.

Homestead size regulations

Rural Homestead cannot be greater than 200 acres and must include a portion of acreage with claimants home on it. Urban Homestead no greater than 10 acres.

Court Systems

Some may overlap however Justice of the peace courts, municipal courts, original jurisdiction

Lien Theory

Some states interpret a mortgage as being purely a lien on real property. The mortgagee thus has no right of possession but must foreclose the lien and sell the property if the mortgagor defaults. (Texas is a Lien Theory State)

Federal Law vs. State Law

State law supersedes as real estate is within the state

Types of ownership features condominiums

Tenancy in Common Fee simple to unit

Texas Homestead

Texas Homestead laws are created by the Texas Constitution to provide special protections to land and the improvements thereon. Only certain land in certain amounts can qualify for these special protections and interests.

types of assumptions

The Grantee of prop becomes liable for the deed

Effective Dates Contracts

The date all parties sign

Equal Credit Opportunity Act (ECOA)

The federal law that prohibits discrimination in the extension of credit because of race, color, religion, national origin, sex, age, or marital status.

Offeror

The person making the offer

Offeree

The person to whom an offer is made.

10th Amendment

The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.

Extraterritorial Jurisdiction

Unincorporated land area beyond the geopolitical boundaries of a city over which the city exercises limited plat review of development.

valid

Well-founded on evidence and corresponds accurately to the real world.

Wills

a legal document that tells how an estate is to be distributed when a person dies

option

agreement allows purchase of land within a given time

Land Use Controls

any public or private restrictions on how land may be used and are usually government-enacted zoning laws

Intermediary Requirements

broker who is employed to negotiate both parties 1- written consent 2- written employment agreement 3- compensation

Easement Creation

easement by express grant, easement by express reservation, easement by reference to a plat, easement by statute. 1. implication 2. prescription 3. estoppel 4. necessity

Senior Tax Exemptions

exempts forced sale occupied by 65+

common law marriage in tx

express or implied presently to be husband and wife living together call each other husband and wife in public

Types of Ownership

fee simple, life estate, leasehold estate, concurrent ownership

Usury

is defined as the charging of an interest rate that is in excess of that allowed by law. It has three essential elements 1. a loan of money 2. an absolute obligation that the principal is repaid 3. exaction of a greater compensation allowed by law.

Easements

is generally defined as the right acquired by one person to the use of another for a special purpose

Rent to own

lease paying to own a property

Tests of a fixture

method of attachment (annexation) Fitness or adaptation to property Intention of the parties

Annexation

method of land use control giving the city powers and certain rights within the extraterritorial jurisdiction

Statute of Frauds

requires certain contracts to be in writing in order to be enforceable

Sources of Law

statutory law- state and federal law. In the Area of real estate State law has been the controlling law as the uniqueness and backgrounds in each state.

Payments from the TREC recovery trust account

that provides for a solvent fund from which an aggrieved party a person who suffers from actual damages can recover cash in the event of brokers failure to pay or inability to pay damages.

Rule of Capture

the owner of the land with water source can pump unlimited amounts of water from under the land.

Control of Land Used by City- Primary Method

zoning statutes indirect municipal power use