Keeping Current With Texas Real Estate, McE 2003

by JACOBUS/WIEDEMER

• ISBN13: 9780324187342
• ISBN10: 0324187343
• Edition: 3rd
• Format: Paperback
• Copyright: 2003-03-19
• Publisher: South-Western Educational Pub

Summary

This well-known and popular MCE title is completely updated by the authors to include coverage of 2002 contracts and the newest figures from Fannie Mae and Freddie Mac. You can rely on Jacobus and Wiedemer, two of the most respected Texas real estate authors, to deliver the most up-to-date MCE material available to meet your needs.

Table of Contents

CHAPTER I LICENSING LAWS, RULES, AND REGULATIONS
Introduction	3	(1)
Changes to Trela	3	(1)
Changes in Education	3	(2)
Suits for Commissions	5	(1)
Referral Fees	5	(1)
Hidden Issues	5	(1)
Termination of Employment Contacts	5	(1)
TREC Rule 535.154(i) Internet Advertising	6	(1)
Fair Housing	6	(1)
Advertising Rules	6	(1)
Agency Disclosure	6	(2)
If the Licensee Does Not Represent a Party	7	(1)
If the Licensee Represents a Party	8	(1)
Intermediary Status	8	(5)
Intermediary = Sponsoring Broker	9	(1)
The Appointment Press	9	(2)
The Notification Form	11	(2)
Difficult Questions	13	(1)
Residential Rental Locators	14	(1)
Residential Rental Locator Guidelines	14	(1)
Pertinent Cases Interpreting Provisions of the License Act	15	(5)
Good News on Commissions (for a Change)!	17	(3)
No Termination Date = No Listing?	20	(1)
Texas Contracts	20	(1)
TREC Forms	20	(4)
Computerized Forms	22	(1)
Practicing Law	23	(1)
Pertinent Provisions	24	(13)
Contingencies	24	(1)
Additional Contingencies	25	(1)
Specific Paragraphs	25	(12)
Effective Date	37	(1)
Inspector Regulations	37	(3)
CHAPTER 2 LAW UPDATE	40	(68)
Homestead Overview	43	(1)
New Issues	43	(10)
Home Equity Liens	43	(3)
Home Improvement Loans	46	(2)
Reverse Mortgage Loans	48	(2)
Mobile Homes	50	(1)
Bigger Urban Homestead	50	(1)
Judgment Liens	51	(2)
New Homestead Cases	53	(2)
Ad Valorem Taxation	55	(2)
Lessee Protest	55	(1)
Homestead Tax Exemptions for Surviving Spouses	56	(1)
New Cases	56	(1)
Federal Income Tax	57	(1)
Gain On Sale of Principal Residence S	S7
Capital Gains	58	(1)
Home Is a Principal Place of Business, Again	58	(1)
Reverse Like-Kind Exchanges	59	(1)
Easements; Appurtenance	59	(1)
Public Property Rights; Beach Access; Location	60
Landlord and Tenant	6l	(57)
Landlord's Duty to Mitigate Damages	61
Water Code Changes	6l	(56)
Commercial Tenancy Rules	62	(1)
Pertinent Cases	63	(5)
Evictions	63	(1)
Suitability	63	(1)
Residential Use	63	(1)
Criminal Conduct	64	(1)
Duty to Mitigate	65	(1)
Zero Tolerance	66	(2)
Annexation Legislation	68	(1)
Annexation Legislation Overview	68	(1)
Contract Issues	69	(2)
New Disclosures	69	(1)
Municipal Utility Districts	69	(1)
Seller's Disclosure Regarding Potential Annexation	69	(1)
Seller's Notice of Obligations Related to Membership and Property Owners' Association	70	(1)
Property Owners' Association Disclosures	70	(1)
Installment Land Contracts	70	(1)
Recent Cases On Contracts	71	(3)
Oral Earnest Mosey Contracts	71	(1)
Contracts for Deed	72	(1)
Legal Descriptions	73	(1)
Verbal Contract Extensions	73	(1)
Recording Issues	74	(5)
Statute of Frauds: Electronic Transactions	75	(2)
Tortious Interference-It's Not What You May Think	77	(1)
Constructive Notice-It May Not Be What You Think	78	(1)
Fair Housing	79	(10)
Family Status and National Origin	81	(1)
Occupancy Restrictions	82	(1)
Marital Status	83	(1)
Family Discrimination: Pregnancy	83	(1)
Fair Housing: Discrimination	84	(2)
Fair Housing: Brokers; Duty to Disclose Diversity	86	(1)
Fair Housing: Liability for the Boss	87	(2)
New RESPA Issues	89	(1)
Payment Shock	89	(1)
HUD Speaks Out on YSP's	90	(1)
Residential Lead-Based Paint Hazard Reduction Act 1992	90	(1)
What Is Required?	90	(1)
Deed Restrictions	91	(6)
Nonprofit Corporation	91	(1)
HOA Foreclosures	91	(2)
New Cases	93	(3)
Defenses to Enforcement	96	(1)
Municipal Enforcement	97	(1)
Sex Offender Registration	97	(1)
Texas Sex Offender Registration	98	(1)
Premises Liability	98	(2)
New Community Property Rules	100	(3)
Equitable Interests of Community Property	100	(1)
Converting Separate Property to Community Property	101	(1)
Homebuilders' Warranty Issues	102	(1)
Additional New Legislation	103	(5)
Notary Public Legislation	103	(1)
Title Insurance Legislation	104	(1)
Utility Service Providers	105	(1)
Issuance of Land Patents	105	(1)
Condemnation	106	(2)
CHAPTER 3 TEXAS DECEPTIVE TRADE PRACTICES ACT & AGENCY	108	(46)
Deceptive Trade Practices Act	111	(1)
Definitions	112	(1)
Other Important Provisions	112	(3)
Section 17.42 Waivers	112	(1)
Section 17.44	113	(1)
Section 17.49 New Prohibited Claims	113	(1)
"The Laundry List"	113	(2)
Unconscionable Action or Course of Action	115	(1)
Brokerage Cases Interpreting the DTPA	115	(8)
Pertinent Cases	116	(7)
Defenses Under the DTPA	123	(12)
Statutory Defenses	123	(1)
Section 17.505	123	(1)
Section 17.5051 Compulsory Mediation	124	(1)
Section 17.555	124	(1)
Case Law Defenses	125	(5)
Licensed Real Estate Property Inspectors	130	(1)
Seller Disclosure Forms	131	(1)
Seller's Disclosures in the Courts	132	(2)
Damages Under the DTPA	134	(1)
Negligent Misrepresentation	135	(1)
Real Estate Recovery Fund	135	(1)
Agency	136	(1)
Agency Introduction	136	(1)
Creation of the Agency Relationship	137	(2)
Actual Authority	137	(1)
Ostensible Authority	137	(1)
Ratification	138	(1)
Purchaser Representation-The Shift of Fiduciary Duty	139	(6)
Procedures	140	(2)
Buyer Brokerage Issues	142	(1)
New Texas Case	143	(2)
The Difficult Situations	145	(1)
Agency Disclosure Rules	146	(2)
The Dual Agency Statute	148	(2)
MLS Rules	150	(1)
The Latest Roles for Licensees	150	(4)
Intermediaries	150	(3)
Can You Give Advice or Opinion?	153	(1)
CHAPTER 4 FINANCE UPDATE, FEDERAL AND STATE	154	(38)
Introduction	157	(1)
The Mortgage Market Today	158	(1)
Custom Pricing of Mortgage Loans	159	(1)
Primary Mortgage Market	159	(2)
Residential Loans	159	(1)
Commercial Loans	160	(1)
Regulated Lenders	161	(1)
Community Reinvestment Act (CRA)	161	(1)
Community Development Corporations	162	(1)
Mortgage Companies	162	(1)
Texas Licensing of Mortgage Brokers	163	(1)
Administration of the Law	163	(1)
Additional Requirements	163	(1)
Computerized Loan Origination (CLO)	164	(1)
Automated Underwriting	165	(1)
Automated Underwriting on the Internet	165	(1)
Mortgage Loan Web Sites	166	(1)
Nehemiah Program Has Strong Growth	166	(1)
Secondary Mortgage Market	167	(3)
Mortgage Partnership Finance Program (MPF)	167	(1)
Federal National Mortgage Association (Fannie Mae)	168	(2)
Federal Home Loan Mortgage Company (Freddie Mac)	170	(1)
HUD's Final Rule on Government Service Enterprise's (GSE'S) Affordable Housing	170	(2)
Government National Mortgage Association (Guns Mae)	171	(1)
Federal Agricultural Mortgage Corporation (Farmer Mac)	171	(1)
Fannie Mae/Freddie Mac Loan Limits	172	(1)
Continued Payment of Private Mortgage Insurance	173	(1)
Fed Targets Home Ownership and Equity Protection Act (HOEPA) Loan Purchasers	173	(1)
Credit Scoring	174	(1)
FHA Issues a Scoring Procedure	175	(1)
FICO Credit Score	175	(1)
Subprime Loans	176	(1)
Typical Credit Criteria	176	(1)
Predatory Lending	177	(1)
Shoddy Appraisals Help Predatory Leaders	177	(1)
State Predatory Lending Bills	178	(1)
Mortgage Fraud	178	(1)
Investment in Real Estate	179	(1)
Investing Via the Internet	179	(1)
Interest Rates for Commercial Loans	179	(1)
Recent Changes in HUD/FHA Requirements	180	(1)
FHA Premium Reduced	180	(1)
HUD Increases Multifamily Loan Limits	180	(1)
HUD/FHA Loan Limits for Texas	180	(3)
Loan Limits Based on Geographic Location	181	(1)
Loan Limits Based on Value of the Collateral Property	181	(1)
HUD's Section 811 Program	182	(1)
Teacher Next Door Program	182	(1)
Another FHA Disclosure	183	(1)
New VA Guaranty Limit	183	(1)
VA Benefits Increased	183	(1)
Affordable Housing Programs	183	(2)
Program Guidelines	184	(1)
CRA Credit Criteria	184	(1)
Home Buyer Education Requirements	184	(1)
Texas Veteran's Land Board	185	(1)
Texas Department of Housing and Community Affairs	186	(1)
First Time Homebuyer Program	186	(1)
Down Payment Assistance Program	186	(1)
Manufactured Housing	187	(2)
Manufactured Home Building Code	188	(1)
Mortgage Electronic Registration System	189	(1)
Growth in Spanish Market	189	(1)
Real Estate Center	189	(3)
Real Estate Center Advisory Committee	190	(1)
Publications	190	(2)
CHAPTER 5 ENVIRONMENTAL ISSUES I	192
Introduction	195	(1)
Polychlorinated Biphenyls (PCB)	196	(1)
The Lead Factor	196	(1)
The Environment and the Economy	196	(2)
Environmental Assessments for Home Loans	197	(1)
Environmental Assessments for Commercial Loans	197	(1)
Environmental Requirements of the Secondary Market	198	(1)
An Agent's Disclosure of Environmental Factors	198	(1)
U.S. Supreme Court Rules on Government's Right to Protect the Environment	199	(1)
Principal Environmental Problems	199	(1)
Lead Poisoning	199	(3)
1996 Lead-Based Paint Rule	201	(1)
Sources of Lead Poisoning	202	(1)
Testing for Lead	202	(1)
Indoor Air Pollution	202	(6)
Formaldehyde Gas	203	(1)
Radon Gas	204	(1)
Asbestos	205	(1)
Economic Consequences	206	(1)
Rules Governing Asbestos Removal	206	(1)
Texas Department of Health Asbestos Regulations	207	(1)
Mercury	207	(1)
Toxic Waste Sites	208	(2)
Extent of Liability	208	(1)
Hazardous Materials Covered by CERCLA	209	(1)
Innocent Landowner Defense	209	(1)
Recovery of Brownfield Areas	210	(1)
Tax Relief for Brownfield Cleanup	211	(1)
Polychlorinated Biphenyl (PCB)	211	(1)
Clean Water Act	211	(1)
Wetlands Protection	212	(4)
New Wetlands Regulations	213	(1)
Rule Favoring Small Landowners	213	(1)
Wetlands Definition	214	(1)
Wetlands Mitigation Banking	215	(1)
Enforcement	215	(1)
Other Regulatory Agencies Involved with Wetlands	215	(1)
Endangered Species Protection	216	(2)
Kinds of Endangered Species	216	(1)
Taking Is Prohibited	217	(1)
Penalties and Enforcement	217	(1)
Challenges by "Activists"	217	(1)
Underground Storage Tanks (UST)	218	(1)
Electromagnetic Forces	219	(2)
Facts About Electromagnetic Forces	220	(1)
Regulations	221	(1)
Real Estate Agents and EMF	221	(1)
Texas Private Real Property Rights	221
DOCUMENTS AND FORMS D-I
TREC 20-6, One to Four Family Residential Contract (Resale)	D-3
TREC 10-4, Addendum for Sale of Other Property by Buyer	D-11
TREC 11-4, Addendum for "Back-Up" Contract	D-12
TREC 39-4, Amendment to Contract Concerning Property	D-13
TREC 38-1, Notice of Termination of Contract	D-14
Broker-Lawyer Committee Discussion Draft	D-15
Intermediary Relationship Notice	D-16
ANSWERS TO PRE-ASSESSMENT EVALUATION	ANS-I
INDEX	I-I