Possession of keys?

Question:
When do buyers get the keys if the sellers remain in the property past closing? We are getting ready to close a residential transaction in which the seller will remain in the property for 30 days after closing under the terms of a Seller's Temporary Residential Lease (TAR 1910, TREC 15-3) attached to the contract. Is the buyer entitled to a set of keys to the property at the time of closing?

Answer:
Yes. At closing, the buyer becomes the owner of the property and is entitled to all of the rights of ownership, which include the keys to the property. However, the buyer's right to occupy the property is subject to the seller's right to occupy the property in accordance with the temporary lease.

The temporary lease states that the landlord/buyer/owner may enter the property at reasonable times to inspect the property. Possession of keys to the property may be necessary for the buyer to exercise that right without interference by the seller, as long as the entry is at reasonable times. Thus, the language of the TREC contracts, custom and practice, rights of ownership, and a landlord's duties and rights under Chapter 92 of the Property Code all indicate that the landlord/new owner is entitled to maintain keys to the property.

This post is a courtesy of the Weekly Digest, provided by the Texas Association of REALTORS®. Read more legal FAQs on www.TexasRealtors.com.

Groundwater Conversation Districts

There are almost 100 groundwater conservation districts (GCDs) in Texas, covering 70% of the state, and more are created during each legislative session. GCDs are created in areas where groundwater conservation and protection are deemed necessary.

How do GCDs affect my clients’ properties?

GCD rules that cover your clients' communities may affect the transfer of property with existing wells, encumber a property owner with fees for well production if they produce more than a specific amount of water, or place a restriction on the construction of a new well on a property.

How do I know if my client is in a groundwater conservation district?

Take a look a this map that the Texas Water Development Board publishes of all the GCDs in Texas.

Where can I find the GCD’s rules?

Visit the Texas Water Development Board’s website and look on the right side of the page for links to “District Information” listed alphabetically. Once you find the district, you’ll see links to the legislation that created it, contact information, a website, and the current rules. Some districts may have “presently unavailable” listed under the rules section, which could mean that there aren’t any rules in place and you or your clients may have a chance to influence the development of them. There are no uniform rules for GCDs; each one creates its own rules.

To learn more about how to deal with the rules of GCDs, contact the Texas Association of REALTORS® Legal Hotline at 800-873-9155.

Question: Does the order in which buyers and sellers sign the Lead-Based Paint Addendum matter??

The order in which a buyer and a seller sign the addendum for lead-based paint does matter. The seller must sign first because the seller provides information to the buyer regarding any known lead-based paint and/or lead-based paint hazards, as well as any records and reports pertaining to lead-based paint and/or lead-based paint hazards. The prospective buyer must have this information when deciding whether to conduct a risk assessment or inspection for the presence of lead-based paint or lead-based paint hazards. Note that the disclosure must be made before any contract is executed.

Question: Is a buyers' rebate legal?

TREC rules state that a buyers' agent may rebate a portion of his/her commission to the buyer so long as that rebate is disclosed on the HUD-1 form. Failure to disclose a payment to the buyer on the settlement statement can constitute a “false statement to the lender,” which is a federal crime. Generally speaking, a licensee may rebate a portion of his/her commission to a party in a real estate transaction. Note that if a licensee offers a rebate to a party that the licensee does not represent, the licensee must obtain the consent of the party represented by the licensee prior to making the payment.

Great resource from Texas Association of Realtors® (TAR)

Quite often we overlook outstanding resources that are easily available to us simply because we ignore help that is already out there. With this quick post, I want to share a source that is provided to us free of charge by the Texas Association of Realtors® (TAR). It is called "The Real Deal", and it is the official blog of the association. Over the last 4-6 months, I have read quite a few articles posted there that have either taught me something or have provided insight into a current topic of interest. If you are looking to stay on top of current real estate issues here in Texas, this is an outstanding source to add to your blog reader or bookmarks:

Here an example of a quick, to-the-point post they recently added:

http://texasrealtors.wordpress.com/2012/01/06/are-you-obligated-to-show-properties-not-in-the-mls/

To subscribe, go to the following link and click on the FOLLOW button at the bottom right of the page:
http://texasrealtors.wordpress.com/

Happy blogging!