Chapter 6 Flashcards
(27 cards)
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 is also a
statutory estate in Texas
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
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 on January 1st to
qualify. You can back file for up to two years if you have failed to claim this exemption.
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.
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
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 sales in Texas are held on
the first Tuesday of the month
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
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.
A mechanics lien is for
labor or materials for the improvement of property. It is one of the foreclosable
liens on a Texas homestead.
