Texas Real Estate Law - SAE Champions School Of Real Estate| 81 questions with 100% correct answers.

CERCLA Liability Rules Hazardous Substance Liability 1. Owner 2. Prop Manager 3. Cleaner of the Facility 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. Truth in Lending Act An act which requires lenders to inform borrowers of all direct, indirect and true costs of credit. 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. CERCLA Comprehensive Environmental Response, Compensation, and Liability Act Title Theory Legal concept that vests title to mortgaged property in the mortgagee (lender) or a third party. 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) Extraterritorial Jurisdiction Unincorporated land area beyond the geopolitical boundaries of a city over which the city exercises limited plat review of development. 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 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. Control of Land Used by City- Primary Method zoning statutes indirect municipal power use Types of Ownership Ownership in Severalty, Tenancy in Common, Joint Tenancy 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. Effective Dates Contracts The date all parties sign 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. Court Claims Limits No more than 10k 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. 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! Deed Term-Exceptions Exceptions convey limitations to title such as mineral rights, air rights and deed restrictions. 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 types of assumptions The Grantee of prop becomes liable for the deed 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. 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. 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. 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. 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. 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. 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. 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 Partnership Entities General Partnerships, Joint Ventures, limited liability partnerships, limited partnerships Homestead Termination in TEXAS Death, terminates claimants but not entire homestead. Alienation sale of house or buying a new home. Abandonment not easy. 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. 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 Types of Ownership fee simple, life estate, leasehold estate, concurrent ownership Lis Pendes Law is Pending