Chapter 4 Flashcards
Rectangular system or the government survey system
1785, the federal government began using the rectangular survey system for the acquisition, organization, division and sale of government-owned lands. Land was divided into grids like graph paper. With the rectangular survey system, all distances and bearings are measured from two primary lines intersecting at right angles.
Townships
The largest subdivisions of land with this type of survey. They are divided into 36 squares called sections. Sections are intended to be one-mile square and contain 640 acres of land.
“lot and block” survey system
a property is described using the registered lot, and then block on the plat or survey. In Texas, the Texas Board of Professional Land Surveying regulates surveyors.
RECORDED PLAT
One of the easiest and most widely used methods of land description is the recorded plat. A plat is a subdivision map filed with the county recorder’s office that shows the location and Boundaries (lot and block number) of individual parcels of land. A plat is a survey of property that describes the dimensions and location of the property, street right-of-way, and easements. A plat also establishes the lot, block, and subdivision name used in real estate transactions.
Section 1101.555 of the Texas Real Estate License Act is entitled
“NOTICE TO BUYER REGARDING ABSTRACT OR TITLE POLICY.”
“When an offer to purchase real estate in Texas is signed, a license holder shall advise each buyer, in writing, that the buyer should:
(1) have the abstract covering the real estate that is the subject of the contract examined by an attorney chosen by the buyer; or
(2) be provided with or obtain a title insurance policy.”
In most transactions the lender is going to require
a title search,
an abstract of title,
and a title insurance policy,
so licensees “automatically” check these options as a possibility.
Structural engineers
are professionals that can determine the structural integrity of a building. Their expertise is essential if a property possibly has foundation problems.
Disclosure documents are given to the seller to fill out by the licensee that reveal negative conditions on the property, including:
structural damages
the presence of lead-based paint
an environmental assessment
OP-H
Seller’s Disclosure Notice
OP-L
Addendum for Seller’s Disclosure of Information on Lead-Based Paint and Lead-Based Paint / Hazards as Required by Federal Law
TREC No. 28-2
Environmental Assessment, Threatened or Endangered Species and Wetlands Addendum).
Option fee.
Funds which must be delivered to the seller, or the listing agent, within three days after the effective date of the contract.
Owner’s policy of title insurance.
Insurance issued for the benefit of the buyer of real property ensuring that the title is “good and marketable” meaning the buyer is protected from any defects to the title that were not disclosed in the title commitment.
Mortgagee’s policy of title insurance
Insurance issued to the lender on real property ensuring that the title is “good and marketable” meaning the lender is protected from any defects to the title that were not disclosed in the title commitment.
