If I hire a real estate agent, do I need to hire an attorney?

You need an experienced commercial real estate attorney to protect your interests. The Texas Real Estate Commission that governs real estate contracts specifically prohibits real estate agents from giving legal advice, and states in the contract the buyers and sellers sign, “Consult an attorney before signing the contact.” Additionally, brokers don’t get paid unless the sale closes. Attorneys are objective. The attorney’s job is to protect you in the earnest money contract for due diligence and represent you at closing. Hiring an attorney on the front end could save a client from hiring a trial attorney on the back end when there is a serious problem, costing much higher fees.

Does title insurance guarantee perfect title?

No, title insurance is nothing more than an insurance policy that provides good and marketable title to the property being insured. This does not guarantee perfect title. There are many exceptions to title which are disclosed on Schedule B of the preliminary title commitment. This document is usually confusing or just legal mumbo jumbo to most people. Items listed in the title commitment are pre-existing matters on the property that the title company is not insuring which shifts the burden of those problems to the buyer. You are charged with legal notice of theses issues whether they are specifically pointed out to you. Examples of items listed in Schedule B include: easements, restrictions, mineral drilling, boundary disputes, mineral or farm leases, and any defects in title that would have been apparent from obtaining a new survey or otherwise physically inspecting the property.

Is the standard Texas Real Estate Commission (TREC) “One to Four Family Residential Contract” just an offer?

No, this document is a binding contract. Once signed, the buyers are obligated to buy and the sellers obligated to sell. It binds the parties to the terms set out in the contract including all obligations related to appraisals, inspections, repairs, survey encroachments and loan approval. Buyers have most of the risk under this TREC form. In the event of a dispute between the buyer and seller, the party’s remedies are stated in this contract. Therefore, it is important to understand its terms.

Is it necessary to have a contract for New Home Construction?

The law imposes very few legal requirements on residential home builders outside of a contract with its client. Unless builders and their clients agree to terms, it can be difficult to determine which party bears a particular burden when a dispute arises. Price increases, change orders, time delays, warranty issues, interest rate increases when the construction loan expires are just a few of the examples of issues which can arise during construction. Having a qualified attorney review and advise you regarding contract terms can avoid disputes. The lawyers of Dankesreiter & Emmet, LLP have drafted construction contracts on behalf of both home builders and home owners.

What are the “Closing Documents”?

The “closing documents” control the terms of the sale including terms of the loan. There is much legal and binding language in the (usually 50-100 pages) of documents that make up the closing documents. We often get questions and concerns about the terms after a sale is complete and the documents executed. We always recommend that parties understand the terms of the documents that they sign. We can help.