State Exam -Special Topics in Texas Real Estate Flashcards

State Exam -Special Topics in Texas Real Estate Flashcards Protection from Forced SaleThe notion of the homestead has always been revered in Texas. The Texas Constitution (section 28) and Property Code section 42.001(b)(1) provide that the homestead of a family or single adult is protected from forced sale for purposes of paying debts and judgments except in cases

of:Purchase moneyTaxes (both ad valorem and federal tax

liens against both spouses)Owelty of partition (divorce)Home improvement loansHome equity loansReverse mortgagesLiens predating the establishment of homesteadRefinance loans or the conversion or refinance of a lien on a mobile home that is attached to the homestead Size LimitsThere are some limits to the amount of real estate that can be homesteaded. In an urban environment, the maximum amount of land cannot exceed 10 acres. They can be multiple lots, but they must be contiguous or adjoining.If it is a rural property, the maximum homestead size is 200 acres for a family and 100 acres for a single person How to Avoid DTPA ViolationsFirst, the agent needs to ensure that anything they publish is accurate whether it's in the MLS, property flyers, internet websites, or print advertising.Second, it's best that the agent does not talk about the condition of the property, i.e., "new roof," as that statement can lead to misunderstandings or misrepresentations.Third, it's best to leave condition comments to the seller. Under the property disclosure laws of Texas, all sellers must disclose the condition of their property, especially regarding a defect. In a home, condo, or townhome sale there is actually a form published by the TREC for use by sellers. Additionally, the Texas Association of REALTORS® and various local Boards of REALTORS® have similar disclosure forms that disclose as much and usually more information about the property. Most sellers have to complete and provide the

disclosure form to a buyer.*Note: If the seller willfully does

not disclose a defect to the agent, the agent will not be found in violation if that defect is later discovered. The agent has no reason to believe the seller would be lying.Equitable Redemptionoccurs before the foreclosure sale (auction) of a property Veterans Land BoardTexas veterans may be eligible for special programs that make purchasing and owning real estate affordable. The Texas Veterans Land Board (VLB) runs three programs

that help veterans:Texas Veterans Home Improvement

Program: Provides below-market interest rate loans to

qualified Texas veterans for home repairs and improvement to their existing homes.Veterans Land

Program: Loan program that offers Texas veterans the

opportunity to buy land at below-market rates with low

down payments.Veterans Housing Assistance Program:

Aids Texas veterans in purchasing a home with a competitive, low-interest loan with little or no down-payment Security DepositsSecurity deposits and the return of security deposits have rules defined under the terms of most leases, and also in

Section 92.102 and 92.108 of the Texas Property Code:No

interest will be paid on the amountTenant must give landlord at least 30 days written notice of surrender of the propertyTenant may not withhold payment of any portion of the last month's rent because of security depositLandlord is not liable for the return or account for the security deposit until tenant gives written statement of forwarding addressAt the time landlord has 30 days to return or account for the deposit, postmarked

Texas Deceptive Trade Practices Act DTPA is the primary consumer protection law in Texasit continues

to provide protection to consumers against:False and

misleading statements or deceptive practicesUnconscionable (inexcusable, unforgivable) actionsBreaches of warrantyThe DTPA gives consumers the right to sue for economic damages.Transferring Community PropertyThis means that all property acquired during a marriage belongs equally to both individuals and will be equally divided if their marriage is dissolved.If a spouse passes away without a will, their half of the property passes on to their spouse, unless there are stepchildren. If there are stepchildren, the deceased spouse's half of the property is passed on to the deceased's heirs Mechanic's Lienis a type of statutory and specific lien that can be imposed upon a property if the property owner fails to pay a contractor for any work on the property Separate PropertyCommunity property laws do not govern property that is received by an individual as an inheritance or gift and they do not apply to property acquired prior to the marriageHowever, if one spouse rents out their separate property, that income is considered community property (unless there is an agreement specifying otherwise).The Foreclosure ProcessThe lender sends a demand letter to the homeowner, who has 20 days to pay the past due amount.After the 20 days have passed (and at least 21 days before a foreclosure sale), more foreclosure notices must be sent. These go to the county clerk (where the property is located), the county court where the sale would happen, the defaulting borrower, and any other creditors who have liens on the property Texas Veterans Home Improvement ProgramProvides below-market interest rate loans to qualified Texas veterans for home repairs and improvement to their existing homes.Homestead Tax ExemptionThere is a homestead tax exemption (not to be confused with the homestead right mentioned previously) that can be filed at the appraisal district in the county in which the property is located. This homestead tax exemption will reduce the amount of ad valorem taxes paid on the homestead.An owner can only claim one homestead. The homestead exemption cannot be filed until the buyer has been in the home past January 1st. This means that buyers who purchase early in the year may have to wait a long time before they can receive this exemption that will save them money on their annual taxes.