Texas Law of Contracts - Cumulative

abstract of title

an abbreviated history of a property, including info on any transfers, grants, wills, conveyances, liens, and encumbrances

acceleration clause

clause in a security instrument (mortgage/deed of trust) which makes the entire loan amount due immediately upon default

accessible

that which can be approached, entered, or viewed without hazards, specialized equipment, or damaging property

accession

refers to the acquisition of new land or real property by artificial or natural means

actual damages

monetary compensation given to an injured party for losses that were a result of the actions or omissions of another party

actual notice

notice given to a specific party regarding the ownership of a property

adaptation

the use and modification of a particular item for a specific use in a property — specific use for a property could deem an item as real property

addenda

documents containing additional terms, information, or obligations that are attached to a contract / a document that's attached to a purchase agreement that includes additional information or requests items not included in the purchase agreement

agency

a relationship where one party is authorized to act on behalf of the other

air rights

ownership rights to the air above a property, extending from the surface of the land up into space

alienation

the process and act of transferring property from one party to another

allodial system

system of ownership in which land is owned completely, without an obligation of services or duties to another

amendment

a document that changes the terms in a sales contract that has been previously agreed to by all the parties; requires all parties to sign the amendment for it to be valid / a change in a legal document made by adding, altering, or omitting a certain part or term

Americans with Disabilities Act

identified and defined protected disabilities, as well as required all new buildings with employees or public access to provide reasonable access for people with protected disabilities

annexation

attaching (or affixing) personal property to real estate in a way that transforms the personal property into real property

approved contracts

contracts that are allowed by the Texas Real Estate Commission but not required

assignment

the transference of obligations in a contract from one party to another

beneficiary

the recipient of advantage or gain from an act or instrument such as a trust, will, or insurance policy

bilateral

having or involving two sides, often with some degree of reciprocal impact or obligation

bill of sale

a certificate of transfer of personal property

breach of contract

occurs when the terms or conditions of a contract have been violated

closing

the final step in the home-buying process, during which the title to the property is transferred from the seller to the buyer and consideration is paid to the seller

common law

the side of law which arises from judgements and decisions made in courts rather than explicit legislation

community property

a special form of joint tenancy that exists between a married couple, with each owning a one-half interest; any house or real estate purchased during a marriage is considered community property

Community Reinvestment Act

legislation that ensures depository institutions meet the credit needs of low- and moderate-income families

competent

the mental capacity of an individual to participate in legal proceedings or transactions

conditional acceptance

acceptance based upon a specific condition or event happening

condominium

property where each owner has a separate interest in their own unit and undivided interest in the common areas

consideration

something of value exchanged by the parties as evidence of agreement to the terms of a contract

constructive notice

recording of a deed in publicly accessible records

Consumer Financial Protection Bureau (CFPB)

independent agency created under the Dodd-Frank Wall Street Reform Act to supervise financial companies, banks, and credit unions as well as enforce federal consumer financial laws

contingency

a provision within a contract that makes performance conditional upon the occurrence of a stated event

contract

an agreement with two or more parties by which one party will receive consideration and the other will either perform an act or refrain from performing an act

contract for deed

an agreement between the seller and buyer for the sale of real estate wherein the seller holds the legal title to the property until it is paid in full

conventional life estate

a type of freehold life estate created by a deed or will that lasts for the duration of the tenant's life

conveyance

the voluntary alienation and transfer of an interest and rights in real property

cooperative (co-op)

a residential building in which the title is held by a corporation, the residents are stockholders in the corporation, and the residents have a lease

corporation

a company or group of people recognized as one entity under the law; owners purchase stocks in the corporation (shareholder) and the corporation is run by the board of directors (elected by the shareholders)

dedication

the voluntary gift of one's land to the public

deed

a legal written document that conveys the intangible ownership rights (title) of a real estate property to another party

deed in trust

a security instrument that places the deed to the property in a trust held by the lender until the mortgage is paid off, at which point, the trustee will transfer the deed to the borrower

deed of trust

security instrument which places the deed to the property in a trust held by the trustee, who holds it as security on behalf of the beneficiary (lender)

deed restriction

a provision in a deed that restricts the land use of a property

default

failure to fulfill an obligation by duty, contract, or law

defeasible fee estate

also known as fee simple defeasible or qualified fee, is a type of freehold estate in which the person who has possession of the property is only able to hold the property until an event takes place or does not occur; two common defeasible fee estates are fee simple determinable and fee simple subject to condition subsequent

defect

an item that was installed or is attached to the home and has an imperfection

deficiency

a condition that, in the reasonable judgment of the inspector, adversely and materially affects the performance of a system, or component or constitutes a hazard to life, limb, or property

discharge

the termination of an agreement or contract, such as a lease

doctrine of laches

a legal principle used to bar dated claims; used in conjunction with an unreasonable delay or negligence in asserting or defending one's rights

Dodd-Frank Act

created a new consumer watchdog to prevent mortgage companies and payday lenders from exploiting consumers

earnest money

the money the buyer offers as a deposit towards the purchase price of the property in order to show their serious intentions to the seller

easement

an interest in, or a right to use, another individual's land or property, generally for a specific, limited purpose

effective date

the date a contract becomes binding between the parties

emblements

crops growing on a property which require annual care and are considered the personal property of the owner

eminent domain

the power of the government or a public entity to take private property for public use without consent of the property owner

encumbrance

any restriction, encroachment, claim, or lien on a property (such as a mortgage) that affects the value or use of the property

Equal Credit Opportunity Act (ECOA)

a federal law enacted to provide legal protection for consumers against unfair and discriminatory lending; located in Title VII of the Consumer Credit Protection Act

equitable interest

the right of a lender to claim ownership of a property if a borrower defaults on payments

equitable redemption

occurs before the foreclosure sale (auction) of the property and allows defaulting debtors to pay the defaulted portion of the debt and prevent foreclosure

escheat

the legal doctrine by which the decedent's property will pass to the state without their consent if that individual dies without a will, a surviving spouse, lineal descendants, or other known heirs

estate

the degree, quantity, nature, and extent of one's interest in property

estate at will

when a tenant is occupying a property with the landlord's knowledge and consent, but without a formal lease agreement

estate for years

a leased possession of property for a certain, specific period of time; also known as a tenancy for years

eviction

the process by which a tenant is expelled from a property

exclusive agency listing

a listing agreement in which the owner retains the right to sell the property themselves without paying a commission, or the commission will be paid to the named broker if the broker or any other party sells the property

exclusive right to sell agreement

a listing agreement which gives the agent the sole right to sell the property and guarantees that the broker receives a commission if the property is sold, even if the seller brings the buyer themselves

executed contract

a contract in which all terms have been fulfilled by all parties

executory contract

a contract that is not completely executed or performed

exemplary damages

fines used to punish the breaching party

express acceptance

when the parties explicitly state that they agree to the terms of the offer

Fair Housing Act of 1968

a federal law that prohibits discrimination in housing based upon race, color, religion, or national origin and was amended to include sex, disability, and familial status

fee simple condition subsequent

a defeasible fee estate in which a grantor conveys a parcel of real estate subject to a condition of ownership; the grantor must go to court to assert their right to retake ownership (right of re-entry)

fee simple determinable

a defeasible fee estate that will come to an end automatically and immediately upon the occurrence of a designated event, the time of which is uncertain

fee simple estate

maximum ownership of real property; also called a fee or a fee simple absolute; it is of indefinite duration, freely transferable, and freely inheritable

FICO score

a credit scoring system used by most lenders to determine credit risk

financing contingency

requires that the buyer get approved for a loan before being able to complete the purchase of a home

fixture

an object that was once personal property but is now firmly attached to the land in such a way that it is considered to be real property

forbearance agreement

part of a contract that requires one or more of the contracting parties to refrain from actions they are otherwise legally entitled to perform

foreclosure

a sale of property required by the court in order to repay debt; occurs when a borrower cannot repay a loan for which their property serves as security / the legal process whereby a lender takes control of a property held by a borrower in default and sells it to recover the lender's losses

freehold estate

an estate in land in which ownership will last for an indeterminate duration

funding

disbursal of funds after closing that usually precedes possession of a property

general partner

person in a partnership who takes the lead on day-to-day relationships and assumes full liability for the business

general warranty deed, a.k.a. full covenant and warranty deed

the most frequently used deed format, provides the greatest protection of all the deeds

good funds

funds a buyer is expected to bring to or have available for closing in a format acceptable to the title company

graduated lease

a variable lease agreement in which the amount of rent increases periodically at regular intervals

gross lease

a lease in which the tenant will be responsible for the payment of a fixed monthly charge, while the landlord is responsible for paying all operating expenses

ground lease

a leasing of bare, undeveloped land

homestead

a personal residence that is protected from creditor seizure except for mortgage liens, tax liens, or mechanic's liens

Housing for Older Persons Act

established that a planned living community could require a minimum age for new residents

implied acceptance

when the parties bound by the contract act in a manner that just implies acceptance of the offer; unenforceable in Texas

improvement

any non-natural structure built on or affixed to land

index lease

a variable lease agreement that also allows for a graduated increase of rent at periodic intervals

inspection contingency

gives the buyer the right to get the home inspected and negotiate further if there are repair issues

intention

the owner's intent for an item — was it designed to be a part of the real property

Interest

a right or legal share in a property

intestate

a person who dies without a will

inverse condemnation

occurs when the government has over-regulated a property so that it can't be fairly used via restrictions, permitting, etc., that virtually eliminate any use of the property

joint tenancy

co-ownership in which the parties have an equal and undivided interest in the property; includes the right of survivorship rather than inheritance

joint venture

a partnership formed by a group of investors for one venture — it dissolves after the venture is complete

judgment lien

a lien that reflects a court decision concerning the rights and claims of parties in a suit