This post is a courtesy of the Weekly Digest, provided by the Texas Association of REALTORS®. Read more legal FAQs on www.TexasRealtors.com.
Question:
I represent a buyer who wants to purchase a home that is for-sale-by-owner. The owner tells me he will pay me a fee if he signs a contract with my buyer and that contract closes. I thought there was a one-time listing agreement but I cannot find one. What form should I use?
Answer:
The Texas Association of REALTORS® doesn’t have a one-time listing agreement, but you could use Registration Agreement Between Broker and Owner (TAR 2401). This form allows you to register your buyer to cover the purchase of the owner’s property during an agreed time period. It also contains language to provide that the owner will pay your negotiated fee should your buyer purchase the property during that period. The agreement doesn’t allow you to list the property for sale or require the owner to pay you a fee should the owner sell the property to someone else. Finally, the form makes it clear that you represent the buyer only.
This form could be used in similar situations where the broker is representing a buyer interested in farm and ranch or commercial property. It is not intended to take the place of a buyer’s representation agreement between a broker and his buyer client.
February 24, 2013
August 13, 2012
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.
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.
July 31, 2012
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.
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.
July 18, 2012
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.
February 1, 2012
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!
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!
May 14, 2011
Question:
When giving referral gifts how much is the maximum you can spend and be allowed to claim on your taxes.....by referral gifts I mean gifts you give to people who refer a client to you. How much are we allowed to give to buyer clients who have just bought a house and we can claim on taxes?
Answer:
Per TREC regulations, you are allowed to spend a maximum of $50.00 on gifts to people who refer a client to you. To buyer clients, there is no limit as to how much you are allowed to give back to them. Keep in mind that most, if not all lenders want those amounts to be disclosed during the loan processing time so that they can make a more accurate determination as to whether the buyers are truly financially prepared to handle their mortgage payments.
When giving referral gifts how much is the maximum you can spend and be allowed to claim on your taxes.....by referral gifts I mean gifts you give to people who refer a client to you. How much are we allowed to give to buyer clients who have just bought a house and we can claim on taxes?
Answer:
Per TREC regulations, you are allowed to spend a maximum of $50.00 on gifts to people who refer a client to you. To buyer clients, there is no limit as to how much you are allowed to give back to them. Keep in mind that most, if not all lenders want those amounts to be disclosed during the loan processing time so that they can make a more accurate determination as to whether the buyers are truly financially prepared to handle their mortgage payments.
Subscribe to:
Posts (Atom)
