Real Estate Review

Front 1

Severalty

Back 1

Joint tenancy means that two parties have an undivided interest in a particular property and, upon the death of one party, full ownership automatically goes to the survivor. Despite the way it sounds, "in severalty" means as sole owner.

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Tenants in Common

Back 2

In order to create joint tenancy, some form of relationship must exist between the parties involved, whether business, spousal or other. Because their interests were acquired as a gift, the parties in this instance become tenants in common, with all the ownership benefits of joint tenancy, but not the survivorship rights.

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Schedule of Exceptions

Back 3

Schedule of Exceptions is a specific list of items not covered and can include things such as unrecorded mechanic's liens, assessments, water rights and mining claims.

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covenant of seisin

Back 4

The covenant in a deed which states that the grantor is the owner and has the right to convey the title

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recording of a deed

Back 5

Gives constructive notice of the ownership of real property. Recording a deed does not convey, insure or warrant ownership. However, it does protect the owner's interest in a property by serving notice that the recorded owner is the only recognized holder of title. This places a larger burden of proof and process on someone trying to assert a prior ownership interest and/or claiming a deedholder's title is clouded.

Front 6

general warranty deed

Back 6

proves a marketable title. A general warranty deed stipulates that the ownership being conveyed is free of any hidden liens, encumbrances or other claims. Further, it states that if some unknown encumbrance should arise in the future, the person conveying the deed will make appropriate compensation. (This guarantee, however, is no substitute for title insurance.)

Front 7

Encumbrances

Back 7

Liens are, of course, serious in that they indicate the owner has failed to pay a debt secured directly or indirectly by the property. Easements, on the other hand, are generally a practical necessity for most residential properties.

Front 8

Advertising a listing

Back 8

All advertising must list the sponsoring broker's name but need not identify the property.

Front 9

Partition Suits

Back 9

Partition suits are typically pursued when a co-owner of a property wants to sell his or her share and the other owners are opposed. Since it is a legal action involving the courts, it is an expense with often unsatisfactory results.

Front 10

Quiet Title

Back 10

A owner might bring a "quiet title" action to correct a minor mistake in the property description or to remove an easement that's been unused for years. Additionally, they are used when a third party tries to asset some right to the property through a dubious claim. The suit "quiets the mouth" of that person and establishes a clear title.

Front 11

exclusive agency

Back 11

Open listings mean that if the owner or any other broker or salesperson produces the buyer, the broker will lose his or her commission. Exclusive Right to Sell gives the broker his or her commission regardless of who actually sells the property, even if it is the owner. Exclusive Agency allows the seller to appoint an exclusive agent, but retain the right to sell the property himself.

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attorney in fact

Back 12

"Disinterested" means being able to act in an objective manner without any hidden motivation or prospect of gain. For example, a person who made a secret deal to sign a contract contrary to his client's best interests in exchange for an under-the-table payment would not be "disinterested."

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Equitable title

Back 13

"Equitable title" means that the prospective buyer has obtained the right to acquire ownership of a property currently owned and occupied by another.

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Right after obtaining a listing

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Upon obtaining a listing, the broker or licensee must provide the seller signing the listing with a legible, signed, true, and correct copy of the agreement.

Front 15

Assigning a contract

Back 15

Assigning a contract means to transfer it to another.

Front 16

The Vendor

Back 16

Land contracts are also known as installment contracts. In this type of arrangement, the buyer occupies the property, but the title is held in the name of the seller until some future point in time--often when the last payment is made.

Front 17

acceleration clause

Back 17

"Acceleration clauses" are stipulations that if certain events occur, such as not making payments, the entire amount of the mortgage can become due. Most typically, this is seen in "due on sale" clauses that require the mortgage balance be paid in full at the time the house is sold.

Front 18

a buyer's representation agreement

Back 18

For a buyer's representation agreement to be valid and enforceable in Texas, it must be in writing and have a termination date not subject to prior notice; as such, it is considered an employment contract.

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Exclusive Right to Sell

Back 19

The only requirement of an exclusive-right-to-sell listing agreement is that it must specify a definite termination date not subject to prior notice by either party.

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Seller’s Disclosure of Property Condition

Back 20

The "Seller's Disclosure of Property Condition" is required for all single-family dwelling units which have been previously occupied (regardless of when or in what capacity), but this code does not apply to commercial properties.