BAR ESSAYS Flashcards
(34 cards)
The grantor of a general warranty deed guarantees that he holds 6 covenants of title. Present covenants include:
Future covenants include:
the covenant of seisin, the covenant of the right to convey, the covenant against encumbrances.
the covenant of quiet enjoyment, the covenant of warranty, and the covenant of future assurances.
A special warranty deed only warrants against…
defects arising during the time the grantor has title.
A quitclaim deed promises…
The grantee in a quitclaim deed receives…
no covenants of title. The grantee in a quitclaim deed receives no better title than what the grantor possessed.
Valid deeds abide by _________ and include…
the Statute of Frauds; all necessary terms, such as the grantor’s signature, named grantee, words of transfer, and a description of the property.
In Texas, an instrument conveying real property may not be recorded unless…
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 acknowledgements or oaths.
For a joint tenancy to exist:
(1) each tenant must have an equal right to possession of the property; (2) each tenant must have an equal interest; (3) each tenant’s interest must have been acquired at the same time; and (4) each tenant must acquire their interest in the same instrument. In Texas, the right of survivorship is not automatically included in a joint tenancy.
For residential property, a notice of default must be served by…
certified mail and provide at least 20 days to cure the default before notice of sale will be given. After the 20 days’ notice, notice of the sale must be filed with the county clerk, posted on the courthouse door, and served on the debtor by certified mail at least 21 days before the sale date.
Texas homeowners may end the foreclosure process by…
paying off the debt before the foreclosure sale begins. This process is known as an equity of redemption. The seller must notify a purchaser who is in default their right to cure the debt and allow the purchaser at least 60 days to do so.
The purchaser of a property at a foreclosure sale takes the property…
free and clear of any junior mortgage and subject to any senior mortgage.
The money from a foreclosure sale would be first applied to…
the costs associated with the sale, second to the balance and interest of the debt itself, and finally to all junior interest holders. Any residue would be paid to the debtor.
When subcontractor notifies debtor of original contractor refusal to pay.
An owner who receives lawful notice of a claim may withhold from payments owed to the original contractor an amount necessary to pay a claim to a subcontractor. The owner is not liable for any money paid to the original contractor before he received notice. If the owner received notice, and a lien has been secured and reduced to a final judgment, then the owner is liable, and his property is subject to a claim for any money paid to the original contractor.
Mechanic’s lien.
In Texas, a contractor, subcontractor, or other supplier of materials or labor to be used for the construction or repair of a home may secure a mechanic’s lien on the property if the materials or labor were provided pursuant to the contract.
A mechanic’s lien extends to…
the home, building, fixtures, improvements, or railroad, but does not extend to sidewalks, streets, or utilities that are public property.
A mechanic’s lien secures payment for…
labor performed, for materials furnished or specially fabricated, or for the preparation of a plan.
A subcontractor may not claim a lien that exceeds…
an amount equal to the proportion of the total price of the labor performed, materials furnished or specially fabricated, reasonable overhead costs, and proportionate profit margin minus the sum of payments received.
A person claiming a mechanic’s lien must file…
an affidavit with the county clerk not later than the 15th day of the 4th calendar month, or the 3rd calendar month for residential projects, after the day the indebtedness accrues. The affidavit must be signed by the person claiming the lien and must include a sworn statement of the amount of the claim, the names and last known addresses of the owner, original contractor, and claimant, a statement of the work performed and materials furnished, and a legally sufficient description of the property to be charged with the lien.
Any person who files an affidavit with a mechanic’s lien must:
send a copy of the affidavit by registered or certified mail to the owner at his last known business or residence address not later than the fifth day after the affidavit is filed with the court. Any person who is not an original contractor must also send a copy of the affidavit to the original contractor at his last known business or residence within the same time period.
A subcontractor must give the original contractor notice of any unpaid balance…
no later than the 15th day of the 2nd month in which the subcontractor’s labor was performed or material delivered.
In Texas, for a homestead to exist, there must be…
a present enforceable right, plus the right to possession of the property. The homestead claimant must have the intent to occupy the property as a homestead and must make overt acts of occupation and dedication indicating such intention.
A rural homestead consists of:
not more than (i) 200 acres for a family, or (ii) 100 acred for a single adult.
An urban homestead consists of not more than:
ten acres of one or more contiguous lots. A homestead is urban if at the time the designation is made, the property is (i) located within city limits, its extraterritorial jurisdiction, or a platted subdivision; and (ii) served by municipal police, fire protection, and at least three of either electric, natural gas, sewer, storm sewer, or water services. There cannot be a mixed homestead.
To show that a noncontiguous homestead is part of a rural homestead, the owner 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.
The exceptions to the homestead protection from forced sale include:
purchase money mortgages, taxes on the property, refinance of a lien against the homestead, mechanic’s liens on the homestead, home equity loans, reverse mortgages, and owelty of partition.
The warranty of habitability.
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.
