Real Property

Question 1

Water Rights Regime used in TX

Answer 1

Prior Appropriation Doctrine

May claim riparian rights if you can trace title back between 1823 and 1895

Question 2

TX Groundwater Rule

Answer 2

A landowner in TX owns the groundwater below the surface of his property

ABSOLUTE CONTROL

Question 3

The Homestead Exemption is available to

Answer 3

Single Adults and Heads of Household

Question 4

Purpose of Homestead Exemption

Answer 4

Designed to protect a family’s home from a forced sale to satisfy creditors after the death of the head of household

Question 5

Types of Homestead

Answer 5

1. Rural Homestead
2. Urban Homestead
3. Business Homestead

Question 6

Rural Homestead for Single Adult

Answer 6

100 acres

Question 7

Rural Homestead for Family

Answer 7

200 acres

Question 8

Urban Homestead

Answer 8

1. 10 acres of 1 or more contiguous lots
2. Located within city limits, and
3. Served by municipal police, fire protection and at least 3 utilities

Question 9

Rural Business Homestead

Answer 9

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

Question 10

Urban Business Homestead

Answer 10

Same lot as homestead or a contiguous lot

May not exceed 10 acres

Question 11

Personal Property Homestead

Answer 11

Must be on the owner’s land and have some level of attachment to the land

Question 12

Basic Protection of the Homestead Exemption

Answer 12

Protects a home from a forced sale to satisfy creditors

Question 13

Exceptions to the Homestead Exemption

Answer 13

1. Purchase money mortgage
2. Taxes on the property
3. Refinance of a lien
4. Construction Improvements
5. Home Equity Loans
6. Reverse Mortgages
7. Owelty

Question 14

Transfer of Homestead

Answer 14

Spouses cannot transfer or encumber without agreement of the other spouse

Question 15

Termination of the Homestead

Answer 15

1. If claimant dies without a survivor to take the homestead

2. Abandonment = clear and present intent not to use the property as a homestead

Question 16

Who can claim a mechanic’s lien?

Answer 16

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

Question 17

Purpose of a mechanic’s lien

Answer 17

To ensure that those engaged in building projects will receive payment for their labor

Question 18

Scope of a Mechanic’s Lien

Answer 18

Covers payments for -

1. Labor performed
2. Materials furnished or fabricated
3. 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

Question 19

Priority of Mechanic’s Lien

Answer 19

Attaches to the house, building, or improvements in preference to any prior lien, encumbrance or mortgage

Question 20

Practical requirements

Answer 20

1. Affidavit of Lien

2. Notice

Question 21

When must an affidavit lien be filed?

Answer 21

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

Question 22

When does indebtedness accrue for the original contractor?

Answer 22

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

Question 23

When does indebtedness accrue for the subcontractor?

Answer 23

The last day of the month of the last month in which the labor was performed or the materials were furnished

Question 24

Vendor’s Lien

Answer 24

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

Question 25

Is TX a lien theory or title theory state?

Answer 25

Lien theory