Oct. 29, 2007
Dear George: I tried selling a house using two different REALTORS®. The second one assured me that when someone wanted out of her listing agreement, she let them out because it was wrong to keep them tied to her. Well, my house didn't sell and I leased it instead. I told the second REALTOR® what I was doing and that I wanted to take it off the market. She said OK, but I owed her $250 for advertising because I didn't leave it listed for the whole term of my contract with her. I never got a copy of the contract I signed in her office. Is this a normal procedure?
Answer: First, let's assume that you listed your home with this REALTOR® using the Texas Association of REALTORS® Residential Real Estate Listing Agreement - Exclusive Right To Sell. If this assumption is correct, the answer to your question lies within the that form. You need to get a copy of the form you signed in the REALTOR®'s office. She should've made certain you received the form; failing to so might violate a rule of the Texas Real Estate Commission. If that REALTOR® had an enforceable right to require that you pay advertising costs of $250, it would be listed on that form in one of two places: Paragraph 5.D(3), Transaction Fees or Reimbursable Expenses, or Paragraph 15, Special Provisions
Dear George: I live in California but want to buy a house in Texas and transfer ownership to my parents. How difficult and costly is the transfer process? Does it matter that I live out of state?
Answer: You have the right to transfer title to your real estate any time. This right is part of the theory of fee-simple ownership. If a lender is involved, there may be restrictions imposed on transfers. Talk with your lender before you purchase the Texas property. The costs are nominal to transfer ownership, usually involving preparation and recording of the deed.
Dear George: My home had foundation work about five years ago, and the work came with a warranty. Now, I'm considering selling the house. A Texas REALTOR® informed me that disclosing the work is not enough; the state lending laws changed in 2007 to prohibit any lender from financing a home with foundation issues.
Is this true?
Answer: It's true that the Texas Legislature made changes to lending laws in 2007; however, the REALTOR® is mistaken. While no lender wants to make a loan on a dwelling with a faulty foundation, you made the foundation repair—with a warranty no less. You need only disclose the foundation repair in the appropriate seller disclosure notice. If you put your home on the market, consider hiring a REALTOR® who is more knowledgeable about lending issues and can point you to accurate information.
E-mail a question to ask George & Chuck or fax it to 713-978-6684. The answers to questions in this column do not contain legal advice. If you wish to obtain legal advice, you should consult your own attorney.
