Real Property

Question 1

When can an owner withhold payments owed to the original contractor?

Answer 1

When the owner receives lawful notice of the claim - not liable for any money paid to the original contractor before he received notice

Question 2

What is the effect of an owner receiving notice on a lien?

Answer 2

The lien has been secured and reduced to a final judgment, the owner is liable, and his property is subject to a claim for any money paid to the original contractor

Question 3

Who may secure a mechanic’s lien?

Answer 3

In Texas, a contractor, subcontractor, architect, engineer, surveyor, or other supplier of materials (materialman) or labor to be used for the construction or repair of a house, building, improvement, or railroad may secure a mechanic’s lien on the property if the materials or labor were provided pursuant to a contract.

Question 4

What does a mechanic’s lien do?

Answer 4

Secures payment for labor performed, for materials furnished, or specially fabricated, or for the preparation of a plan or plat

Question 5

T/F the property owner must retain during the progress of work and for 30 days after work is completed either 10% of the contract price of the work to the owner or 10% of the value of the work measured by the proportion that the work done bears to the work remaining, the contract price, or, if no contract price, the reasonable value of completed work.

Answer 5

I don’t know, true

Question 6

What does someone filing a mechanic’s lien need to do?

Answer 6

The person claiming the lien must file an affidavit with the county clerk no later than the 15th day of the 4th calendar month, or the 3rd calendar month for residential projects, after the day the indebtedness accrues

Question 7

What does an affidavit for a mechanic’s lien need to contain

Answer 7

signed by the person claiming the lien and must include a sworn statement of the amount of the claim, names and last known addresses of the owner, original contractor, and claimant, a statement of work preformed and a legally sufficient description of the property

Question 8

What are the 6 covenants in a general warranty deed?

Answer 8

Present covenants - Covenant of seisin, covenant of right to convey, covenant against encumberances

Future covenants - right to quiet enjoyment, covenant of warranty, covenant of future assurances

Question 9

What covenants does a special warranty deed contain

Answer 9

same covenants as a general warranty deed, but only warrants against defects arising during the time the grantor has title

Question 10

What warranties does a quitclaim deed have?

Answer 10

None - basically you’re screwed

Question 11

What do you need for a homestead to exist in texas

Answer 11

there must be an enforceable right, plus the right of possession in the property. Must intend to occupy the property as a homestead and make overt acts signaling such intention

Question 12

rural homestead consists of…

Answer 12

200 acres for a family and 100 for a single person

Question 13

urban homestead consists of…(also what does it need to be considered urban)

Answer 13

no more than 10 acres of 1 or more contiguous lots

property is (1) located within the city limits, its extraterriotiral jurisdiction, or platted subdivision, (2) served by municipal police, fire protection, and at least 3 of either electric, natural gas, sewer, storm sewer, or water services.

Question 14

Can there be a mixed homestead?

Answer 14

No

Question 15

In Texas, an instrument conveying real property may not be recorded unless…

Answer 15

it is signed and acknowledged or sworn to by the grantor (i) in the presence of two or more credible subscribing witnesses; or (ii) before and certified by an officer authorized to take acknowledgments or oaths

Question 16

From whom is the homestead not protected during a forced sale?

Answer 16

purchase money mortgages, taxes on the property, refinance of a lien against the homestead, work and material used in constructing improvements on the property, home equity loans, reverse mortgage, and owelty of partition.

Question 17

How does an owner show that noncontinuous property is part of a rural homestead?

Answer 17

must show that the second tract—on which he does not live—is necessary to the use and enjoyment of the tract on which he does live, as a home

Question 18

Can married spouses sell, convey, or encumber a homestead without joiner of the other spouse?

Answer 18

No

Question 19

what is the warranty of habitability?

Answer 19

In Texas, a landlord must provide a safe, decent, and sanitary dwelling, and he must make repairs of any conditions that threaten the health or safety of an ordinary tenant

Question 20

Does a landlord have a duty to make repairs?

Answer 20

Yes, the landlord must make a diligent effort to repair a condition if the tenant gives proper notice of the condition, the tenant is not delinquent on rent at the time notice if given, and the condition materially affects the health and safety of an ordinary tenant.

Question 21

What can the tenant do if the landlord breaches the warranty of habitability?

Answer 21

terminate the lease, remedy the defect & deduct from rent, sue for damages, or defend against eviction if premises aren’t safe or habitable

Question 22

What is a fee simple determinable?

Answer 22

A fee simple determinable is a fee simple limited by durational language such as “as long as,” it terminates automatically upon the occurrence of the stated condition and goes back to the grantor.

Question 23

A deed is a ______interest whereas a deed of trust is a ________ interest

Answer 23

title; security

Question 24

When can promissory estoppel be used to enforce a promise?

Answer 24

if: (i) the promisor should reasonably expect to induce action or forbearance by the promisee, (ii) the promise does induce such action or forbearance, and (iii) injustice can be avoided only by enforcement of the promise.

Question 25

What is a deed of trust?

Answer 25

a instrument that secures a debt in real estate; allows the creditor to sell the property if the note is not paid.

Question 26

T/F A leasehold estate is a defeasible interest that will divest when the lease terminates

Answer 26

true, if a lease terminates, then the interest terminates

Question 27

Duty to protect against drainage

Answer 27

Texas courts impose duties upon lessees to ensure that leased properties are properly and fairly developed, maintained, and administered. Absent express provisions to the contrary, Texas courts impose an implied covenant to protect against drainage

Question 28

What do you need to maintain a cause of action for drainage?

Answer 28

need to show (i) substantial drainage, (ii) that a reasonably prudent operator would drill to protect against drainage, and (iii) damages measured by the yield of production absent waste.

Question 29

Ways a gas company can protect against drainage for an adjacent tract

Answer 29

• exercise a pooling clause

- drilling an offset well that would produce a definite quantity of oil

Question 30

What constitutes a valid notice for a foreclosure sale?

Answer 30

To properly give notice of a foreclosure, the party filing as a result of the debtor’s default must give 21 days notice of the foreclosure sale. It must include the expected time of sale,

Question 31

When must a valid foreclosure sale be held?

Answer 31

Must be on the first Tuesday of each month between the hours of 10am and 4pm at the county courthouse at the designated area for such a sale, if one was designated

Question 32

Where should a valid foreclosure sale be held?

Answer 32

In the county where the property is located

Question 33

Does a trustee deed carry any express or implied warranties?

Answer 33

No - a trustee deed does not carry any implied or express warranties

Question 34

To be recordable, does a deed need to be notarized and signed by two witnesses?

Answer 34

Yes

Question 35

Does a line of credit loan qualify as a privileged lien against a homestead?

Answer 35

No - only valid liens against a homestead are (1) purchase money mortgages, (2) tax liens, (3) home improvement loans (d) refinancing, or (e) owelty partitions

Question 36

Do lots need to be contiguous to constitute a rural homestead?

Answer 36

No, as long as there are enough acts of homestead usage that meet the standard of “comfort, convenience, or support of the family”, the lots do not need to be contiguous

Question 37

Does a tenant in common need to get the other one’s permission for granting an easement

Answer 37

Yes - any co-tenant needs to get the other’s person because its an encumbrance on the land - need to get permission before doing something that burdens the property

Question 38

Are tenants in common liable for their proportional share of repairs and maintenance on commonly owned property?

Answer 38

Yes!

Question 39

Can a tenant in common sell their undivided interest in the property?

Answer 39

Yes - they can sell their interest

Question 40

If a junior mortgage is extinguished in a foreclosure sale, does that mean they don’t have any rights in the land?

Answer 40

No - they can still go after you for a deficiency judgment

Question 41

Does a quitclaim deed have an implied covenant of marketable title?

Answer 41

Yes PRIOR TO CLOSING

Question 42

if the premises is shit (roaches, etc) and the tenant refuses to move in and terminates the lease, does the landlord have a duty to repair?

Answer 42

No! since the tenant terminated the lease, the landlord does not have a duty to repair anymore

Question 43

When is a landlord required to return a security deposit?

Answer 43

within 30 days after the tenant surrenders the premises.

Question 44

If the landlord deducts from the security deposit, what do they need to provide? Can they deduct for normal wear and tear?

Answer 44

must itemize and describe in writing all of the deductions

No - only damages or charges for which the tenant is liable under the terms of the lease, or because the tenant breached the lease