Real Estate

Texas Deeds

In Texas, there are various types of deeds with each deed conveying different types of interests and warranties. 

Types of Deeds:

1. General Warranty Deed. 

2. Special Warranty Deed. 

3. General Warranty Deed With Vendor's Lien. 

4. Assumption Deed. 

5. Lady Bird Deed. 

6. Revocable Transfer on Death Deed. 

7. Quit Claim Deed. 

This is just a non-exhaustive list of the several types of deeds commonly used in Texas. The type of deed that you need is based on the circumstances applicable in the real estate transaction.  

Some deeds provide more protections, some deeds provide more rights, and others not so much. That is why you need an experienced attorney by your side.  Knowing what you are getting yourself into and the legal effects of such real estate transaction is very important.

If you have any questions please do not hesitate to contact us. 

Real Estate Agreements

What Is a Real Estate Contract?

A real estate contract is a legally binding agreement between two or more parties for exchange, purchase, or any other type of real estate transaction. This document outlines the terms agreed upon after negotiations have ensued. Real estate contracts are required by the Statute of Frauds (SOF) in U.S. common law to be in writing and signed by both parties to be enforceable.

As in any legal transaction, real estate contracts are essential in the execution of real estate transactions. They are designed to protect both parties. They form the basis of legal action that can be taken if any of the parties does not fulfill the terms of the contract. However, the laws regarding real estate contracts may vary from state to state. Therefore, it is prudent to hire an attorney before signing anything.

Requirements for a Real Estate Contract As it is the case with other contracts, the following requirements must be met for a real estate contract to be enforceable:

Offer:  One party typically makes an offer by preparing a written real estate contract, signing it, and handing it to the other party. The other party either accepts the offer, makes a counteroffer, rejects it, or fails to respond.

Acceptance: The other party can accept the offer by signing it. The contract must possess original signatures by both parties for it to be enforceable. Both parties should initiate any alterations to the contract. If a counteroffer is made, the original offer will be terminated and it won’t be legally binding since both parties didn’t agree to the terms. When the offer is rejected, it is terminated. If there is no response to the offer, it automatically terminates by the expiration date indicated on it.

Consideration: This is something of value that is exchanged between the two parties in the real estate transaction. Consideration is mostly in the form of money. It could also be a promise to perform or another property.

Legal Capacity: The parties involved should be eligible to enter into a contract. They should not be mentally impaired, minors, etc. Legality of Purpose: The contract should not call for illegal action.

Types of Real Estate Contracts

Here are 4 common real estate contracts that you need to familiarize yourself with, based on the different types of real estate transactions:

1. Purchase Agreement: Out of all the types of real estate contracts, this is the most common. A purchase agreement (also called a sales contract) is a binding contract between two parties (property buyer and property seller) to transfer a particular property. This contract specifies the details regarding the sale of a property.

2. General Purchase Agreement: This is a shorter version of the state/association purchase agreement and is typically used when you’re buying the property without a real estate agent.

3. Property-Specific Purchase Agreement: This purchase agreement is normally used in the purchase of properties that are not in the traditional single-family paradigm. For instance, it could be used for mobile homes or vacant lands. 

4. Real Estate Assignment Contract This real estate contract is usually used in a wholesale strategy to facilitate the sale of a property between a homeowner and an end buyer. A real estate assignment contract is initiated when the property owner agrees to sell the rights to purchase the property to an investor and both parties sign a contract binding themselves to the imminent deal. The contract gives a real estate investor the rights to purchase a property (they don’t actually buy the property) and they can then sell their rights to buy the subject property to another buyer. The investor will be paid a small assignment fee by the end buyer, who will proceed to purchase the property from the owner. It is important to note that a real estate assignment contract does not give investors the title to the property. The assignment of the contract will also not appear in the title chain.