What is an HOA?
A homeowner’s association (HOA) is an organization in a subdivision, planned community, or condominium building that makes and enforces rules for the properties and its residents. Those who purchase property within an HOA’s jurisdiction automatically become members and are required to pay dues, known as HOA fees. Some associations can be very restrictive about what members can do with their properties.
The need for a guardianship in a real estate transaction can arise in several ways. If someone in title is a minor child (likely through inheritance) a type of guardianship is needed. We may also need a guardianship if there is a mental competency issue with a seller.
A guardianship is a court proceeding to protect the interest of someone who is not legally or mentally capable of conducting his/her own affairs. This is the process where a guardian is appointed for another person to handle the ward’s personal or business affairs.
In this month’s Closer’s Corner we review the top items that can occur that run the risk of delaying your closing.
T-47 & Survey Matters
When the title company receives the survey and the Residential Real Property Affidavit (“T-47”) to review up front we are looking to see what changes, if any, have happened on the property so that we know if we can use the existing survey for closing or if a new survey is required. The part of the affidavit that we review in full is question #4 which states:
When a contractor performs work on a property they gain the right to file a lien affidavit if they are unpaid. The mere fact that they worked on the property starts their right to file that lien. They are not required to file anything in the official public records documenting their work.
In the April 2021 contract changes Paragraph 4 was added to the contract to address different leases that could be applicable to the transaction. The one covered in this article is the Fixture Lease.
What should an agent be concerned about?
Taxation of real property in Texas is controlled by provisions found in the Texas Constitution and the Texas Tax Code. Because taxes are based on the assessed value of the property, property taxes are commonly referred to as “ad valorem” taxes.
When there has been a death in the chain of title, the transaction can be very complex. If not handled properly a realtor could find themselves with some serious issues. A realtor’s best bet is to have a general working knowledge of the issues and then partner with a knowledgeable title company that can handle the transactions properly.
This past legislative session saw the enactment of a few bills that can affect the real estate transaction. Below is a brief summary of each one.
Senate Bill 1588: Resale Certificate Fees
This bill does many things for HOA Resale Certificate Reform: