In our February Closer’s Corner we talked about the big changes to the TREC contract, most specifically the change that now directs option money to be deposited with the title company.
The new TREC contracts have arrived!
AN UPDATED CONTRACT IS BEING INTRODUCED IN FEBRUARY 2021
During the November 2020 quarterly meeting of the Texas Real Estate Commission (TREC), several rule changes were proposed and form changes were adopted. See the meeting details at: www.trec.texas.gov/article/rules-and-contract-updates-november-commission-meeting
As the population of Austin continues to grow we are seeing more and more developers who want to maximize space on lots. A very popular way to do this is to tear down an existing single family residence and replace it with a two (or more) condominium project. You might also see someone that owns a duplex or other multi-family building convert these properties into condominiums.
Both of these options allow for the units to be sold separately to different buyers so that the seller can increase the number of units they have available to sell.
If you have clients that buy properties at a tax foreclosure there can be some hidden issues that they need to be aware of for their purchase.
Tax Foreclosure: A Timeline
Another Reduced Contact Closing Option
The COVID pandemic has affected how real estate transactions are handled and many of your clients want to have reduced contact closing options. We have been able to accomplish many of these closings by doing “curbside closings” or Remote Online Notary closings, but a Remote Online Notary (“RON”) can be complicated because (1) the lender must approve use of a Remote Online Notary, (2) your client needs to have certain technology acumen and hardware and (3) many RON vendors are overloaded due to demand.
TITLE COMMITMENTS: WHAT ARE THEY?
A commitment for title insurance (“Title Commitment”) provides a buyer and lender with terms and conditions for how the final title policy will be issued. Title insurance offers protection for buyers and lenders from certain defects or errors in the title to a property. There are four main parts (called “Schedules”) of the title commitment.
Every year when the taxes come out we see a lot of confusion between buyers and sellers about how those taxes affect their transaction. Since one of our taxing authorities is already available (Williamson County) and the others will be soon we wanted to send out some details on how taxes affect a real estate transaction.
The first thing to note is that once the tax bills are out those taxes are considered to be “due and payable” to the county tax collector. This means we should be collecting and paying them from closing.
There are many reasons why a real estate closing can be delayed. Like cogs and gears in an intricate clock, there are so many parties involved in a successful real estate transaction. In visualizing this analogy, it should be understandable that delays can happen when some of the moving parts aren’t working in optimal conditions.