PPT ESSAYS TX

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  1. Requirements for a valid foreclosure sale?
    • 1. first Tuesday of the month;
    • 2. at least 21 days notice;
    • 3. b/t 10am and 4pm
    • 4. at the door of the courthouse where the ppt is located (if ppt in more than 1 county, at any county where ppt is located)
    • 5. public sale
    • 6. file notice with the county clerk
  2. requirements for valid notice of foreclosure sale:
    • 1. posting notice at county court house door of every county where ppt is located;
    • 2. file notice with county clerk in every county where ppt is located;
    • 3. sending notice to all parties holding a ppt interest in the ppt
    • NOTE: failure to comply with notice requirements invalidates the sale
  3. who owns legal title of ppt sold at foreclosure sale?
    • Tx has a LIEN THEORY OF MORTGAGES. 
    • This means that the mortgagee (bank) never holds legal title. 
    • Purchaser of ppt at foreclosure receives title WITHOUT any warranties from mortgagee or trustee. 
    • Warranties, if any, would come from the mortgagor. 
    • Purchaser of ppt at foreclosure sale takes a quitclaim conveyance from mortgagee. 
    • Buyer takes ppt as is.
  4. types of deeds?
    • 1. general warranty deed;
    • 2. special warranty deed;
    • 3. quitclaim deed.
  5. highest quality deed?
    what does it guarantee?
    • General warranty deed.
    • It guarantees / obligates grantor to indemnify grantee for loss caused by ANY CLAIMS against title, regardless of when or under whom the claim arose.
  6. what is a special guarantee deed?
    • Limits the scope of grantor's warranties by protecting grantee against ONLY CLAIMS of persons deriving their interest THROUGH THE GRANTOR. 
    • NOTE: grantor only liable for claims that arose while he held title. Not responsible for what happened when prior owners held tittle.
  7. what is a deed?
    Written document that evidences intent of an owner of interest in land to convey all or part of his interest to another.
  8. What are the common law warranties that a deed automatically includes?
    • Automatically included with the terms "GRANT" and "CONVEY"
    • 1. warranty of title 
    • - assures grantee that no 3P has a superior claim of title.
    • 2. warranty agasint encumbrances 
    • - assures grantee that at the time of conveyance, the interest conveyed is free from all encumbrances.
  9. what is a homestead?
    • The Tx Const allows a person to establish a homestead, which is real ppt that is exempt from forced sale by general creditors. 
    • - The exemption provides protection from ALL LIENS EXCEPT those that are constitutionally permitted.
  10. what are the constitutionally permitted liens on Texas homestead?
    • 1. liens for purchase money;
    • 2. owelty liens;
    • 3. liens for improvements;
    • 4. home equity liens, 
    • 5. liens for Taxes, 
    • 6. reverse mortgages;
    • 7. liens predating the establishment of the homestead;
    • 8. refinance of a lien secured by the homestead.
  11. what are the types of homesteads?
    • Types:
    • 1. URBAN
    • - located within the limits of a municipality; OR
    • - extraterritorial jurisdiction; OR
    • - platted subdivision 
    • AND
    • - protected by police,
    • - firefighters, and 
    • - at least 3 types of utilities (water, sewage, electric, natural gas) 
    • 2. RURAL 
    • - whatever does NOT FALL WITHIN URBAN. 
    • NOTE: a person can claim EITHER an urban or rural homestead but not both.
  12. what are the allowed acres per type of homestead?
    • URBAN
    • 10 acres 
    • must have adjacent lots 
    • RURAL
    • 100 acres single adult;
    • 200 acres if family
  13. what are the requirements for a VALID DEED?
    • 1. writing, 
    • 2. signed by grantor;
    • 3. designate a grantee;
    • 4. words of grant;
    • 5. adequate description of ppt;
    • 6. acceptance and delivery to grantee.
    • NOTE: Deed need NOT be sworn or acknowledged or filed to be valid.
  14. what is the purpose and requirements to file a deed?
    • Purpose:
    • - to give NOTICE to 3P's of existence of instrument affecting title to real ppt. 
    • Requirements for filing:
    • 1. valid deed;
    • 2. acknowledged, sworn, or proven;
    • 3. filed/recorded in real ppt records of the county where ppt is located.
  15. requirements of a valid LEASE?
    • - An agreement between landlord and tenant where owner gives lessee exclusive possession of certain ppt during an agreed term in exchange for rent.
    • - If lease if for more than 1 year, must be in writing. 
    • NOTE: no need for witnesses, notarized, or recorded.
  16. what are the duties of a landlord re. repairs?
    • LL has a duty to repair security devices upon request or notice by the tenants that devices are inoperable, in need of repair, or replacement. 
    • - LL may require payment by tenant for such repairs if the repairs or replacements arose by misuse or damage caused by tenant. 
    • -LL has a statutory duty to make a DILIGENT EFFOR TO REPAIR certain conditions that MATERIALLY AFFECT THE HEALTH AND SAFETY of the tenant - unless the condition was caused by the tenant.
    • NOTE: Notice need NOT be in writing unless the lease requires otherwise.
    • NOTE: this is the statutory warranty of habitability.
  17. how does a PARTIAL taking by CONDEMNATION affect lesses's rent responsibilities?
    • partial taking = STILL HAVE TO PAY RENT
    • BUT, lessee shares in the condemnation award to the extend that lessee has been damaged by the condemnation.
  18. how does a FULL taking by CONDEMNATION affect lesses's rent responsibilities?
    This EXTINGUISHES the lease and tenant is excused from paying rent.
  19. is recording a deed necessary to its validity?
    if not recorded, what risks does grantee/buyer run?
    • NOT required for valid deed.
    • RISKS:
    • - failure to record may result in loss or impairment of interest because a subsequent will not have notice of the prior conveyance. 
    • * A person who:
    • 1. pays consideration;
    • 2. without notice;
    • 3. in good faith
    • is a bona fide purchaser. 
    • NOTE: if buyer had any kind of notice (actual, constrictive), then he's not a BFP
  20. what does a bona fide purchaser need to show to be protected from prior unrecorded conveyances?
    • BFP MUST SHOW:
    • 1. that before notice of convenance; 
    • 2. there was (I) DELIVERY OF A DEED; AND (II) PAYMENT OF A PURCHASE PRICE.
  21. what is the shelter rule?
    • A person who buys ppt from a BFP, gets the ppt free of prior conveyances even if he had notice of prior conveyances. 
    • Buyer is sheltered by BFP's status.
  22. what is a FEE SIMPLE DETERMINABLE?
    • - A conveyance typically created by the words "FOR SO LONG AS" "UNTIL" or "WHILE."
    • - The conveyance automatically terminates upon the happening of a stated event and the interest reverts to the grantor.
  23. what is a FEE SIMPLE SUBJECT TO CONDITION SUBSEQUENT?
    • magic words: "but if" "unless" "provided, however"
    • - granting of a present possessory interest where the grantor retains a future interest called a "right of reentry".
    • - if the condition happens, the conveyance does not automatically terminate. 
    • - grantor MUST take action and reserve the right of re entry the conveyance. 
    • NOTE: grantor must expressly reserve the right to terminate.
  24. what is a quitclaim deed?
    • - A release of any interest grantor ma have. 
    • - Grantor makes NO guarantees or representations to grantee. 
    • NOTE: Quitclaim deeds put grantee on inquiry notice of any doubts as to grantor's interest.
    • - inquiry notice is a type of notice, and to be a BFP, you can't have notice.  
    • NOTE: A buyer of a quitclaim deed CANNOT BE A BFP. 
    • if quitclaim deed buyer = NOT BFP. 
  25. Can one co-tenant, acting alone, convey an easement on common tenancy ppt?
    • A co-tennant CANNOT convey or encumber any portion of, or interest in, the common ppt owned by co-tenants without express authority or subsequent ratification of the other tenants
    • Such an action would create in the innocent co-tenant  a RIGHT OF PARTITION w/o the involvement of the wrongful co-tenant.
  26. Must one co-tenant reimburse the other co-tenant for for repairs in the ppt?
    • YES. 
    • A covenant to makes NECESSARY REPAIRS in the ppt is entitled to reimbursement from the other co-tenants.
  27. Must one co-tenant reimburse other co-tenants for rents he received from 3P's?
    • YES.
    • - All covenants are entailed to share in the profits of the ppt. 
    • - Rent is considered profit from the ppt. 
    • - If only one co T received rent, he must share proportionally with other co T's
    • NOTE: a coT who receives rent for ppt held with other coT's receives the rent IN TRUST.
  28. how does a constitutional mechanic's and material man's lien arise?
    if there is privity of K b/t contractor and the owner.
  29. how do you perfect a statutory mechanic's and material man's lien?
    • 1. an original contractor must file an affidavit at the county clerk's office where the ppt is located;
    • 2. mechanic has until:
    • a) the 15th day of the 4th month after the debt accrued. (the idiot has 4 1/2 months for file affidavit) FOR NON-RESIDENTAIL CLAIMS
    • or
    • b)  the 15th day of the 3rd month after the debt accrued. for RESIDENTIAL CLAIMS 
    • 3. mechanic/worker man must send a copy of the affidavit by certified or registered mail to the owner of the thing the mechanic made WITHIN 5 BIZ DAYS OF FILING THE AFFIT.
  30. is a subsequent purchaser subject to a filed mechanic's lien?
    • YES - if buyer had notice
    • Personal knowledge of improvements made on the ppt provides sufficient knowledge of contractor's right to assert a claim. 
    • NOTE: the damned perfected mechanic's lean is effective as of the date the idiot contractor begun work. This is a relation back provision is another stupid protection for these moron contractors
  31. how are mechanic man's liens enforceable?
    • they are intimately enforceable by a foreclosure of the lien and sale of the ppt. 
    • Foreclosure MUST BE JUDICIAL.
  32. what happens if a deed says " two acres on the river side out of XYZ ppt"
    • NOT VALID - has to be more precise. 
    • which 2 acres????
    • SOF requires a clear description in writing of the ppt to be conveyed.
  33. what happens if there is a FORGED deed that is later notarized, recorded, and subsequent parties make future conveyances based on the forgery?
    • NOTHING - ALL CONVEYANCES THAT STREAM FROM FORGED DEED ARE INVALID
    • - A forded deed is VOID from the outset to all those not signing it. 
    • - No tittle of land can pass through it. 
    • - NO person can be a BFP where there is a forgery in the chain of tittle. 
    • - Legal effect cannot be given to such a transfer under consent, waiver, estoppel, implication, delivery or recording. 
    • - NO exceptions!
  34. what is Texas' recording act scheme?
    • PURE NOTICE SYSTEM. 
    • - Thus, a perfected lien has priority over any prior unrecorded conveyance, mortgage, absent knowledge to the lien holder.
  35. would a buyer be better off buying a ppt subject to encumbrances directly from seller or at a foreclosure sale?
    • FLORECLOSURE SALE. 
    • - a foreclosure extinguishes all interests junior to the mortgage the ppt is foreclosed on.
  36. is a buyer personally liable on an already existing mortgage on the ppt?
    • NOT PERSONALLY LIABLE - unless the buyer assumes the mortgage form the mortgagor. 
    • - mortgagor is personally liable
    • - the mortgage still has to be paid, or the ppt will be foreclosed.  
    • - buyer is not but mortgagee can foreclose on the ppt.
Author:
texasstudent
ID:
315200
Card Set:
PPT ESSAYS TX
Updated:
2016-02-03 04:15:59
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TX
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