?? Frequently Asked Questions ??
1. What are my rights under a Texas real estate purchase contract?
You have the right to enforce agreed terms, cancel under certain conditions, and seek remedies for breach. Understanding contingencies and deadlines is critical.
2. Can I cancel a real estate contract after signing it?
You may cancel during the option period or under other contractual provisions. Outside of that, cancellation could be a breach.
3. What is specific performance in a real estate contract?
It's a legal remedy where the court forces the breaching party to complete the sale, typically when monetary damages are insufficient.
4. What happens if a buyer or seller breaches the contract?
The non-breaching party can sue for damages, cancel the contract, or seek specific performance, depending on the situation.
5. Are oral real estate agreements enforceable in Texas?
Generally, no. Texas law requires real estate contracts to be in writing under the Statute of Frauds.
6. What is the “option period” in a Texas home sale contract?
The option period is a timeframe when the buyer can terminate the contract for any reason, typically in exchange for a fee.
7. Can a seller back out before closing?
Only under specific circumstances. Otherwise, the seller may face breach of contract claims.
8. What is a right of first refusal in a real estate deal?
It gives a person the first opportunity to purchase a property before it’s sold to someone else.
9. When does earnest money become non-refundable?
Typically after the option period ends, unless there’s another contingency or breach by the seller.
10. What is required to amend a real estate contract?
Amendments must be in writing and signed by both parties to be enforceable.
11. What is a partition lawsuit in Texas?
It’s a legal action to force the division or sale of property co-owned by multiple people.
12. Can a co-owner force the sale of jointly owned property?
Yes. Any co-owner has the legal right to file for partition and request a sale.
13. What’s the difference between partition in kind and partition by sale?
Partition in kind divides the land physically. Partition by sale sells the property and splits proceeds.
14. How are proceeds divided in a partition by sale?
Proceeds are divided according to ownership interests, adjusted for reimbursements or improvements.
15. What happens if one co-owner paid more than the others?
They may be entitled to reimbursement for expenses like taxes, repairs, or mortgage payments.
16. Can I stop a partition suit if I don’t want to sell?
Usually not. Courts favor the right of co-owners to divide property.
17. Can you partition inherited property in Texas?
Yes. Heirs may seek partition even if there’s no agreement to sell.
18. Who decides whether the property should be sold or divided?
The judge determines whether a physical division is practical. If not, a sale is ordered.
19. Do I need an appraisal for a partition action?
It helps establish value, especially when arguing for fair reimbursement or determining sale price.
20. Can I recover attorney’s fees in a partition case?
Possibly. Texas law allows for equitable reimbursement, but it’s up to the court.
21. What is adverse possession in Texas?
It’s a legal doctrine that allows someone to claim ownership by using land openly and continuously for a statutory period.
22. How long do you need to possess property to claim it?
It depends—Texas law provides for 3-, 5-, 10-, and 25-year adverse possession statutes, each with specific requirements.
23. Do I have to pay taxes to claim adverse possession?
In some cases, yes—especially under the 5-year statute, which requires payment of taxes and a deed.
24. Can family members claim adverse possession against each other?
It’s very difficult and requires a clear, hostile claim that’s openly adverse to other family members’ rights.
25. Can a fence line establish an adverse possession claim?
Yes, if it meets other legal requirements and clearly asserts a claim of ownership.
26. What’s the difference between the 3-, 5-, 10-, and 25-year statutes?
They differ by whether taxes were paid, whether a deed was recorded, and the nature of the use and notice to the owner.
27. How can I defend against an adverse possession claim?
Show that the use was permissive, not continuous, or did not meet the statutory period.
28. What evidence helps prove continuous possession?
Photos, tax records, utility bills, witness testimony, and repairs or improvements.
29. Can I use adverse possession to fix a survey error?
It’s possible but complicated. The burden of proof is high and must meet statutory criteria.
30. Is trespassing the same as adverse possession?
No. Adverse possession requires more—use must be open, notorious, continuous, and hostile to the true owner's rights.
31. What if a neighbor’s fence is over the property line?
You may request removal or file a boundary or trespass-to-try-title action.
32. What is a prescriptive easement?
A right to use property acquired through long-term, continuous use, though Texas recognizes it narrowly.
33. How can I remove an encroachment from my land?
Send a written demand and, if unresolved, file suit for removal or damages.
34. Can a driveway built by a neighbor become theirs over time?
Possibly, under adverse possession or easement by prescription—though rare in Texas.
35. What is the legal process to resolve a boundary dispute?
Typically starts with a survey, followed by negotiation or filing suit to quiet title or for trespass.
36. Are surveys binding in a boundary conflict?
They are strong evidence but not legally binding—courts resolve disputes with all available facts.
37. What is the role of a metes-and-bounds description?
It defines legal boundaries using geographic coordinates and can be critical in resolving disputes.
38. Can a property owner block a private easement?
No. If it’s a legal easement, blocking it can result in legal action for damages or injunction.
39. How is a shared access easement enforced?
Through court order, if necessary. Each party must respect the terms of use.
40. What are my rights if a neighbor blocks my access?
If you have an easement or historic access, you can file suit to restore your right of way.
41. What is a quiet title lawsuit?
It’s a lawsuit used to resolve ownership disputes and remove clouds from title.
42. How do I remove someone from a deed?
Through a new signed deed or by filing a lawsuit, depending on the circumstances.
43. What happens if a deed was forged?
It’s void. You may need to file suit to have it declared invalid and removed from the record.
44. Can I sell property with a title dispute?
It’s very difficult—title companies will not insure unclear title, and buyers will likely walk away.
45. What is a cloud on title?
Any claim, lien, or document that casts doubt on clear ownership and can affect a sale.
46. What’s the difference between a quitclaim and warranty deed?
Quitclaim deeds convey whatever interest the grantor has, while warranty deeds promise clear title.
47. What happens if multiple heirs claim the same property?
A court may need to determine each heir’s legal interest through partition or heirship proceedings.
48. How does a title company handle conflicting deeds?
They may refuse to insure title until the conflict is resolved, often requiring a lawsuit.
49. What is a lis pendens and how does it affect property?
It’s a notice that a lawsuit affecting the property is pending, making the title unmarketable.
50. How does foreclosure affect property title in Texas?
Foreclosure extinguishes junior liens and transfers title to the buyer at auction or lender.
51. What is the foreclosure process in Texas?
Texas follows non-judicial foreclosure, where the lender can sell the property at auction after proper notice.
52. How much notice must a lender give before foreclosure?
Texas law requires a 20-day demand notice followed by a 21-day foreclosure sale notice.
53. Can I stop a foreclosure once it starts?
Yes, through reinstatement, loan modification, or filing bankruptcy.
54. What is a temporary restraining order in a foreclosure case?
It’s a court order that can temporarily pause foreclosure proceedings under limited circumstances.
55. What happens to my equity if the home is foreclosed?
If the sale exceeds the loan balance and fees, the surplus goes to the former owner.
56. Can I buy back my house after foreclosure?
Not under Texas law. Texas does not have a statutory redemption period after foreclosure.
57. How does bankruptcy affect foreclosure?
It can pause foreclosure through the automatic stay, but it doesn’t erase the debt unless fully discharged.
58. Does Texas offer a redemption period after foreclosure?
No, not for non-judicial foreclosures. Some tax foreclosures allow limited redemption.
59. What is a deficiency judgment?
It’s a lender’s claim against the borrower for the difference between the loan balance and sale price.
60. How does a lis pendens affect foreclosure or property sales?
It notifies the public of a pending lawsuit, clouding the title and discouraging buyers or lenders.
61. What is owner financing?
Owner financing is a real estate transaction where the seller finances the buyer’s purchase directly, instead of using a traditional mortgage lender.
62. Is owner financing legal in Texas?
Yes, owner financing is legal in Texas, but the transaction must comply with state laws and federal regulations like the Dodd-Frank Act and SAFE Act.
63. What documents are required for owner financing in Texas?
A typical transaction includes a promissory note, deed of trust, warranty deed, and may require additional disclosures depending on the deal structure.
64. What is the difference between a contract for deed and a deed with a note?
A contract for deed delays title transfer until full payment. A note with a deed transfers title immediately and secures repayment with a lien.
65. Can I sell my property with owner financing if I still owe a mortgage?
It may violate the mortgage’s due-on-sale clause. Always consult a real estate attorney before proceeding with seller financing in this situation.
66. What protections does a seller have in an owner-financed deal?
The seller retains a lien and can foreclose if the buyer defaults, similar to a lender in a traditional mortgage transaction.
67. What happens if a buyer defaults on an owner-financed property?
The seller may foreclose or seek eviction depending on how the deal was structured and what legal documents were used.
68. Do I need a license to offer owner financing in Texas?
You may need an RMLO license unless you qualify for a limited exemption under the SAFE Act or Dodd-Frank, especially for multiple transactions per year.
69. How do I ensure my owner-financed deal complies with the Dodd-Frank Act?
You may need to use a licensed RMLO to verify buyer qualifications unless exempt. Compliance depends on the number and type of deals you do annually.
70. Should I use a title company for an owner-financed transaction?
Yes. A title company ensures clear title, prepares documents, and safely handles escrow and recording for both parties.