Real Property

Question 1

Fee Simple Determinable

Answer 1

A fee simple determinable is created by use of the words “ for so long as,” “until,” or “while.” It automatically terminates on the happening of the stated event and reverts to the grantor or holder of the future interest.

Question 2

Inconsistent Language in a Conveyance

Answer 2

When there is inconsistent language, there is a presumption of a fee simple subject to condition subsequent as it does not result in automatic forfeiture, but the grantor must instead take steps to retake present possession.

Question 3

Cardinal Rule of Construction

Answer 3

Give effect to the grantor’s intent based on the language of the document.

Question 4

Texas - Notice Statute

Answer 4

Under the Texas recording statute, an unrecorded deed or conveyance is void as to a subsequent purchaser for valuable consideration without notice of the deed or conveyance; a BFP.

Question 5

Quitclaim Deed (no BFP status)

Answer 5

A quitclaim deed is merely a lease of any interest the grantor may have. While quitclaim deeds are valid in Texas, the quitclaim deed prevents the grantee under the instrument from taking title in good faith which prevents the grantee from establishing BFP status.

Question 6

Non-Judicial Foreclosure

Answer 6

Under the Texas Property Code, a non-judicial foreclosure sale must take place in the county in which the real property is located.

Question 7

Homestead Joinder

Answer 7

In order to encumber the homestead property even with an otherwise permissible debt, there must be joinder of the owner of the property and the owner’s spouse. Even if the homestead qualifies as separate property, the homestead character gives rise to rights in the spouse which are protected and thus joinder is required.