Real Property Flashcards
Water Rights Regime used in TX
Prior Appropriation Doctrine
May claim riparian rights if you can trace title back between 1823 and 1895
TX Groundwater Rule
A landowner in TX owns the groundwater below the surface of his property
ABSOLUTE CONTROL
The Homestead Exemption is available to
Single Adults and Heads of Household
Purpose of Homestead Exemption
Designed to protect a family’s home from a forced sale to satisfy creditors after the death of the head of household
Types of Homestead
- Rural Homestead
- Urban Homestead
- Business Homestead
Rural Homestead for Single Adult
100 acres
Rural Homestead for Family
200 acres
Urban Homestead
- 10 acres of 1 or more contiguous lots
- Located within city limits, and
- Served by municipal police, fire protection and at least 3 utilities
Rural Business Homestead
A non-contiguous parcel can qualify as a rural homestead provided the owner can show the parcel is necessary to the use and enjoyment of his land
Urban Business Homestead
Same lot as homestead or a contiguous lot
May not exceed 10 acres
Personal Property Homestead
Must be on the owner’s land and have some level of attachment to the land
Basic Protection of the Homestead Exemption
Protects a home from a forced sale to satisfy creditors
Exceptions to the Homestead Exemption
- Purchase money mortgage
- Taxes on the property
- Refinance of a lien
- Construction Improvements
- Home Equity Loans
- Reverse Mortgages
- Owelty
Transfer of Homestead
Spouses cannot transfer or encumber without agreement of the other spouse
Termination of the Homestead
- If claimant dies without a survivor to take the homestead
2. Abandonment = clear and present intent not to use the property as a homestead
Who can claim a mechanic’s lien?
A supplier of material or labor to be used in the construction or repair of a home or building
Contractor Subcontractor Architect Engineer Surveyor Materialman
Purpose of a mechanic’s lien
To ensure that those engaged in building projects will receive payment for their labor
Scope of a Mechanic’s Lien
Covers payments for -
- Labor performed
- Materials furnished or fabricated
- Preparation of a plan
Does not extend to sidewalks, streets, or public utilities
May not claim a lien that exceeds the amount equal to labor performed, materials used, or proportionate profit margin
Priority of Mechanic’s Lien
Attaches to the house, building, or improvements in preference to any prior lien, encumbrance or mortgage
Practical requirements
- Affidavit of Lien
2. Notice
When must an affidavit lien be filed?
Must be filed with the county clerk not later than the 15th day of the fourth calendar month (commercial) [third calendar month (residential)] after the day the indebtedness accrues
When does indebtedness accrue for the original contractor?
The last day of the month in which -
(i) a written declaration is received by the original contracting parties stating that the original contract has terminated, or
(ii) The original contract has been completed, settled, or abandoned
When does indebtedness accrue for the subcontractor?
The last day of the month of the last month in which the labor was performed or the materials were furnished
Vendor’s Lien
In a contract for a deed, a breach may give rise to a lien in favor of the seller
Should be expressly reserved in the deed
Is TX a lien theory or title theory state?
Lien theory
