VI. SPECIAL TOPICS (4 ITEMS) Flashcards
Community Property
COMMUNITY PROPERTY is a statutory estate in Texas.
All property acquired after marriage,
whether purchased or earned, is jointly owned by the husband and wife.
Income on separate property
is considered community property.
An increase in value of separate property is not community property.
For example, if a spouse has a house worth $150,000 at the time of marriage and its value rises to $300,000, the increase is not community property.
However, once community efforts, credit,
or funds are used to increase the value or improve the property, community property rights accrue.
A spouse can waive community property rights by written agreement.
Property acquired prior to marriage, or during marriage by inheritance (devise or descent), or gift, may remain separate property.
Homestead
Homestead protection is automatic and cannot be waived.
The homestead of a family is protected from forced sale by all creditors except: mortgage, property taxes( ad valorem taxes), mechanics and materialmen’s liens, and homeowner/property owner
associations.
When a homestead is foreclosed on for unpaid property taxes, the owner has 2 years to redeem the property.
When a homestead is foreclosed on for unpaid homeowner/property owner association fees, the owner has 6 months to redeem the property.
An urban homestead has a maximum size of 10 connected acres.
A rural homestead has a maximum
size of 200 acres.
On a property greater than 200 acres, the owners have the right to designate
which land will be considered the homestead.
The 200 acres do not have to be connected.
One homestead per person or family.
A life estate can be a homestead in Texas.
The homestead exemption - a tax benefit, should not be confused with the homestead protection.
Homeowners must apply for the exemption and must own and occupy the home to qualify.
You can back file for up to two years if you have failed to claim this exemption.
Deceptive Trade Practices Act (DTPA)
The Deceptive Trade Practices Act (DTPA) allows for the recovery of TRIPLE DAMAGES.
An individual has 2 YEARS from the discovery of the deception to file a complaint.
An example of a license holder in violation of DTPA would be - negligent misrepresentation of MATERIAL FACT.
Wills and Estates
Intestate Succession refers to how property passes when a person dies without a will (intestate) or
with a will that makes only a partial distribution of his/her property. In the event that a person dies
intestate, the courts will appoint an administrator to settle the estate. Property will be distributed
according to the Laws of Descent and Distribution. Heirs to any real property will have Title by
Descent. Property goes to kindred – male and female. Spouse and children have priority under the
laws of descent. If a married couple has all adult children, and one spouse dies intestate, the surviving
spouse can sell his/her real property with only that spouse’s signature. Title transfers to heirs at
probate.
If a party dies with a will, testate, the executor appointed in the will distributes the property and
the heirs are said to have Title by Devise. As with intestate succession, title transfers at probate.
Probate is the judicial process to prove or confirm a will, or to settle the estate of someone who dies
intestate. Probate must begin within 4 years of death. A district court judge transfers title to real
property at a probate hearing. That transfer of title is final after 30 days. See chart in Chapter 2.
Landlord-Tenant Issues
- Tenants may sign an agreement waiving a right to interest on the security deposit. Landlords
must account for security deposits within 30 days after tenants leave. - Landlords must provide new locks on rental property no later than seven days after a new
occupant takes possession of a leasehold premise. Smoke detectors must be operational at the
time the tenant is granted possession. Keyless deadbolts are required but not double cylinder
locks.
Foreclosure and Short Sales
Foreclosure sales in Texas are held on the first Tuesday of the month.
See the National Section of the text for basic information about Foreclosure and Short Sales. (Chapter
2).
A majority of foreclosures in Texas are non-judicial due to the use of the Deed of Trust. The exception
is foreclosure for home equity loans which is judicial in Texas.
Recording Statutes
All states have recording acts for documents by which an estate, interest or right in land is created,
transferred, or encumbered. Recording places a document in the public records – providing legal
notice to the world. Property rights to land must be recorded in the county where the property is
located.
Texas law states that a deed, mortgage or other instrument affecting real estate is not effective as far
as subsequent purchasers and lenders are concerned if it is not recorded.
Mechanic’s and Materialman’s Liens
A mechanics lien is for labor or materials for the improvement of property. It is one of the foreclosable
liens on a Texas homestead.
Texas Veteran’s Land Board
The Texas Veterans Land Board has two programs for Texas veterans.
* The housing assistance program allows an eligible Texas veteran to have his/her mortgage
loan sold to the TVLB instead of to the secondary market. The benefit to the borrower is an
interest rate significantly lower than prevailing market rates
* The TVLB loan program allows eligible Texas veterans to borrow up to $150,000 from the
TVLB to purchase unimproved property. The buyer must obtain a survey and pay 5% down
for a 30-year loan. The minimum tract size is one acre.
Both of these programs are available to all honorably discharged Texas veterans. Disability is not a
requirement.
Neither program is available to any dishonorably discharged veteran.
Both programs are available for the surviving spouse of a veteran listed as Missing In Action or
whose death was service connected.
Home Owners Associations
HOAs in Texas are permitted to regulate, but not ban: flying the flags of the US, the State of Texas,
or any branch of the US armed forces. They can also regulate, but not ban roof solar panels, the display
of religious symbols, or political signs. HOAs can ban privacy fences.
