Chapter 6 – Texas Community Property & Real-Estate Vocabulary

Vocabulary flashcards covering key terms and concepts from Chapter 6, including community property rules, homestead protections, foreclosure procedures, landlord-tenant timelines, and Texas Veterans Land Board programs.

Community Property

Property acquired by either spouse during marriage that is owned jointly by both spouses under Texas law.

Separate Property

Property owned by a spouse before marriage, acquired by gift or inheritance, or recovered for personal injury; not subject to community ownership.

Income on Separate Property

Money earned (e.g., rent, dividends) from a spouse’s separate property; classified as community property in Texas.

Appreciation of Separate Property

Increase in value of separate property itself; remains separate property, not community.

Prenuptial Agreement (Marital Property Agreement)

Written contract in which spouses waive or alter community-property rights; must be signed before marriage to be effective.

Inherited Property

Assets received through inheritance; separate property unless commingled with community funds.

Commingling

Mixing separate and community funds so that their origins cannot be distinguished; may convert separate property into community property.

Homestead Protection

Automatic constitutional protection of a Texas residence from most creditors; cannot be waived.

Life Estate Homestead

A life-estate interest that can still qualify as a protected homestead in Texas.

Foreclosable Liens on Homestead

Liens that can force sale of a homestead: purchase-money mortgages (including home-equity loans), property taxes, HOA fees, and mechanic’s & materialman’s (M&M) liens.

Urban Homestead Size Limit

Up to 10 contiguous acres inside a municipality or its extraterritorial jurisdiction.

Rural Homestead Size Limit

Up to 200 acres for a family or 100 acres for a single adult outside an urban area.

Homestead Exemption (Tax)

Reduction in assessed value for property taxes; owner must qualify and apply and may file immediately after purchase.

DTPA (Deceptive Trade Practices Act) Statute of Limitations

Consumer has 2 years from the date of the deceptive act to file a complaint.

Negligent Misrepresentation

False representation of a material fact made without reasonable care, leading to consumer damages; actionable under the DTPA.

Title by Devise

Transfer of real property to heirs through a valid will when the owner dies (testate).

Laws of Descent (Intestate Succession)

Statutory distribution of property when a person dies without a will (intestate).

Testate

The condition of dying with a valid will.

Intestate

The condition of dying without a valid will.

Security-Deposit Settlement Period

Landlord must refund or account for the security deposit within 30 days after tenant move-out.

Mandatory Rekey Period

Landlord must rekey exterior door locks within 7 days of each new occupancy.

Smoke-Detector Obligation

Landlord must ensure smoke detectors are operational at the start of the lease (zero-day grace period).

Texas Foreclosure Sale Day

First Tuesday of each month; standard date for foreclosure auctions in Texas.

Non-Judicial Foreclosure

Foreclosure process using a deed of trust power-of-sale; typical for most Texas properties.

Judicial Foreclosure (Home-Equity Loan Exception)

Home-equity loans require court action before foreclosure, unlike most other liens.

Recording

Filing a deed or other instrument in county public records to give constructive notice to the world of ownership change.

TVLB (Texas Veterans Land Board)

State agency that purchases eligible loans made to Texas veterans, including FHA, VA, or USDA mortgages.

TVLB Loan Origination

The lender originates the veteran’s loan, then sells it to the TVLB instead of the secondary market.

TVLB Raw-Land Program

Allows qualified veterans to buy raw land with as little as 5% down when financed through the TVLB.

Mechanic’s & Materialman’s (M&M) Lien

Statutory lien filed by contractors, subcontractors, or suppliers for unpaid labor or materials on real property.

Contractor (M&M Lien Filer)

The party who typically files an M&M lien to secure payment for construction or repairs.