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:
A Federal Tax Lien (herein after "FTL") is a lien filed by the Internal Revenue Service for unpaid taxes. Below are 10 fun facts for how an FTL can affect your closing.
Realtors are often asked by clients if they can deed a property they bought into a company or trust they own after closing. You should be aware that doing so may void their Owner’s Title Policy coverage.
There is a solution for your clients that want to transfer ownership and also extend their Owner’s Title Policy coverage to the new owner as long as certain parameters are met.
Last year TREC promulgated a new form that allows a buyer to alter the existing Third Party Financing Addendum. The Third Party Financing Addendum permits a buyer to cancel the contract up to 3 days prior to closing if the property does not appraise for the sales price. The new Addendum Concerning Right to Terminate Due to Lender’s Appraisal can be used to eliminate this cancellation contingency. This form should only be used if the Third Party Financing addendum is being used and it cannot be used on FHA or VA loans.