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Real Estate Issues for City Attorneys A Resource for Municipal Attorneys Who Don’t Speak Real Estate (featuring “Pinkacre”) Allison Bastian-Rodriguez, Attorney DENTON NAVARRO ROCHA BERNAL & ZECH, P.C.

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Page 1: Real Estate Issues for City Attorneys...Real Estate Issues for City Attorneys A Resource for Municipal Attorneys Who Don’t Speak Real Estate (featuring “Pinkacre”) Allison Bastian-Rodriguez,

Real Estate Issues for City Attorneys A Resource for Municipal Attorneys Who Donrsquot Speak Real Estate

(featuring ldquoPinkacrerdquo)

Allison Bastian-Rodriguez Attorney

DENTON NAVARRO ROCHA BERNAL amp ZECH PC

Who What For What Governing Law

Real Estate Documents Closing Documents

(Pinkacre)

(Pinkacre)

(Pinkacre)

Texas Local Govrsquot Code 253008

SALE OF REAL PROPERTY BY PUBLIC AUCTION

(a) The governing body of a municipality may sell real property owned by the municipality by public

auction or by sealed bid under Section 272001

(b) To sell real property by public auction the governing body of a municipality shall publish notice of

the auction before the 20th day before the date the auction is held The notice for sale of the real

property must be published once a week for three consecutive weeks before the date the auction

is held in a newspaper of general circulation in the county in which the municipality is located and

if the real property is located in another county in a newspaper of general circulation in the

county in which the real property is located The notice must include a description of the real

property including its location and the date time and location at which the auction is to be held

Must be sold to highest bidder

Texas Local Govrsquot Code Ch 253

EXCEPTIONS

253002 Islandsflatssubmerged lands

253003 Federal property

253010 Housing nonprofits

253011 Nonprofits

253012 EDCs 20000 gt

Texas Local Govrsquot Code 272001

NOTICE OF SALE OR EXCHANGE OF LAND BY POLITICAL SUBDIVISION EXCEPTIONS

(a) Except for the types of land and interests covered by Subsection (b) (g) (h) (i) (j) or (l) and except as

provided by Section 253008 before land owned by a political subdivision of the state may be sold or

exchanged for other land notice to the general public of the offer of the land for sale or exchange must

be published in a newspaper of general circulation in either the county in which the land is located or if

there is no such newspaper in an adjoining county The notice must include a description of the land

including its location and the procedure by which sealed bids to purchase the land or offers to

exchange the land may be submitted The notice must be published on two separate dates and the sale

or exchange may not be made until after the 14th day after the date of the second publication

Sell to bidder providing ldquobest benefitrdquo

Texas Local Govrsquot Code 272001(b)

EXCEPTIONS

Narrow stripsweirdly-shaped

parcels of land

Streets or alleys

Independent foundation

Governmental entityeminent domain

Reinvestment zone

Texas Local Govrsquot Code 253014

BROKER AGREEMENTS AND FEES FOR SALE OF REAL

PROPERTY BY HOME-RULE MUNICIPALITIES

Governing body may contract with a broker to sell

must list the property for at least 30 days

Sell to ldquoready willing and able buyerrdquo who

submits ldquohighest cash offerrdquo

Texas Local Govrsquot Code 272001(j)

HIGHER EDUCATION

A political subdivision may donate

exchange convey sell or lease land

improvements or any other interest in real

property to an institution of higher

educationhellip to promote a public purpose

related to higher education The political

subdivision shall determine the terms and

conditions of the transaction so as to

effectuate and maintain the public purpose A

political subdivision may donate exchange

convey sell or lease the real property

interest for less than its fair market

value and without complying with

the notice and bidding requirements

of Subsection (a)

Texas Local Govrsquot Code 272001(l)

ANOTHER POLITICAL SUBDIVISION

hellip A political subdivision may donate or sell for less

than fair market value a designated parcel of land or

an interest in real property to another political

subdivision if

(1) the land or interest will be used by the political

subdivision to which it is donated or sold in carrying

out a purpose that benefits the public interest of the

donating or selling political subdivision

(2) the donation or sale of the land or interest is made

under terms that effect and maintain the public

purpose for which the donation or sale is made and

(3) the title and right to possession of the land or

interest revert to the donating or selling political

subdivision if the acquiring political subdivision ceases

to use the land or interest in carrying out the public

purpose

Texas Local Govrsquot Code 272001(g)

LOW- OR MODERATE-INCOME HOUSING

A political subdivision may acquire or assemble land or real property interest except by condemnation

and sell exchange or otherwise convey the land or interests to an entity for the development of low-

income or moderate-income housing The political subdivision shall determine the terms and conditions of

the transactions so as to effectuate and maintain the public purpose If conveyance of land under this

subsection serves a public purpose the land may be conveyed for less than its fair market value In this

subsection entity means an individual corporation partnership or other legal entity

Texas Local Govrsquot Code 253001

SALE OF PARK LAND MUNICIPAL BUILDING SITE OR ABANDONED ROADWAY

(a) hellipthe governing body of a municipality may sell and convey land or an interest in land that the municipality owns holds or claims as a public square park or site for the city hall or

other municipal building or that is an abandoned part of a street or alleyhellip

(b) Land owned held or claimed as a public square or park may not be sold

unless the issue of the sale is submitted to the qualified voters of the

municipality at an election and is approved by a majority of the votes

received at the electionhellip

ANDhellip Texas Parks and Wildlife Code Ch 26

26001 Findings no ldquofeasible and prudent alternativerdquo

26002 Notice and public hearing

DOCUMENTS

Deeds

Purchase and sale agreements

Surveys

Title Insurance

Closing Documents

DEEDS

Implied covenants Warranties

Tex Property Code Sec 5023

General warranty deed

1 Before title passes to grantee grantor has not conveyed

the estate or any interest in the estate to a person other

than the grantee and

2 At the time of conveyance the estate is free from

encumbrances

The GWD obligates the grantor to indemnify the grantee

against any loss resulting from a title defect or from any encumbrances that arose before the conveyance City of

Beaumont v Moore 202 SW2d 448 453 (Tex 1947)

Special warranty deed

The grantor warrants to defend the title conveyed to the

grantee only to the extent that claims are made by

through or under the grantor The SWD covers only title

defects going back to the grantor not to the grantorrsquos

predecessors in title

BTU By Through or Under

Tex Property Code Sec 5022(b)

Deed without warranty

The DWW passes grantorrsquos title to the grantee with an express

exclusion of warranties A DWW relieves the grantor of any

warranty responsibility for title defects yet provides the grantee a

true deed which transfers title--unlike a quitclaim

So if the grantor has title to the property but wonrsquot warrant title a

deed without warranty is preferable to a quitclaim

Quitclaim (not a) deed

Conveys only the right title and interest which may be none

Does not convey ldquoafter-acquiredrdquo title (title acquired after the date of the

execution and delivery of the quitclaim ldquodeedrdquo)

No recourse by the grantee or any subsequent owner of the property against the

grantor

A quitclaim gives notice to the grantee that title to the property may not be clear

so the grantee is not a bona fide purchaser for value

An adverse possessor cannot rely on a quitclaim as a basis for claiming title to

property under the Texas five-year limitations statute Tex Civ Prac amp Rem

Code sect 16025 Porter v Wilson 389 SW2d 650 (Tex 1965)

SALES CONTRACTS

Offer and Acceptance

Seller and Buyer

Property

Underwriter

Escrow Agent

Consideration

Earnest Money

County for Performance

Deadlines

Who (typically) pays

BUYER

Escrow fees

Document preparation

Recording charges for title transfer

Prorated share of taxes

Loan charges and fees

Title insurance premium

(lenderrsquos policy)

Survey

Inspection fees

Negotiable

SELLER

Escrow fees

Judgments liens against seller

Recording charges to clear

Title Insurance premium

(ownerrsquos policy)

Outstanding assessment

Prorated share of taxes

Delinquent taxes

Survey

1A Comprehensive

Focus is for

insuring title

Boundaries

Easements

Encumbrances

1B Boundary Survey

NOT for insuring title

Perimeters

Deed lines

Occupation lines

Rights of Way

Easements

Title Insurance

Texas Insurance Code Sec 2551003

The Texas Department of Insurance promulgates the Basic Manual

of Rules Rates and Forms for the Writing of Title Insurance in the

State of Texas (the Basic Manual)

Title commitments

Title policies

- Procedural Rules

- Rate Rules

- Forms of commitments policies coverage and

endorsements

- Claim procedures

- Bulletins issued by the Texas Department of

Insurance

Schedules

Schedule A-Commitment

Effective Date

Guaranty File (GF)

Type of Policy

Name of Insured

Nature of Interest

Record title owner

Legal description

Schedules

Schedule B-Exceptions to Coverage

Eight Standard Exceptions

- Restrictive Covenants

- Survey

- Homesteadcommunity property

- Streamwater rights

- Taxesassessments

- Docs creating insuredrsquos interests

- Construction

- Subordinate liens

Schedules

Schedule C-Curative Matters

Four Standard Requirements (Seller)

- Executionnotarizing docs

- Evidence of

- No parties in possession

- Taxes paid

- Improvements completedcontractors paid

- Legal access to property

- (alsomdashDeed of Trust is valid)

Schedule D-Disclosures

1 Who is the buyer (Governing law)

2 What kind of useproperty (Governing law) ndash

Highest bid FMV Appraisal

3 Negotiations

Deed

Purchase and sale agreementinterlocal

agreementother

Schedules and deadlines

Survey

Title commitment (buyer)

(becomes title insurance policy)

4 Closing documents

Execute Deed PSA

HUD settlement

statementdisclosuresaffidavits

In sumhellip

Page 2: Real Estate Issues for City Attorneys...Real Estate Issues for City Attorneys A Resource for Municipal Attorneys Who Don’t Speak Real Estate (featuring “Pinkacre”) Allison Bastian-Rodriguez,

Who What For What Governing Law

Real Estate Documents Closing Documents

(Pinkacre)

(Pinkacre)

(Pinkacre)

Texas Local Govrsquot Code 253008

SALE OF REAL PROPERTY BY PUBLIC AUCTION

(a) The governing body of a municipality may sell real property owned by the municipality by public

auction or by sealed bid under Section 272001

(b) To sell real property by public auction the governing body of a municipality shall publish notice of

the auction before the 20th day before the date the auction is held The notice for sale of the real

property must be published once a week for three consecutive weeks before the date the auction

is held in a newspaper of general circulation in the county in which the municipality is located and

if the real property is located in another county in a newspaper of general circulation in the

county in which the real property is located The notice must include a description of the real

property including its location and the date time and location at which the auction is to be held

Must be sold to highest bidder

Texas Local Govrsquot Code Ch 253

EXCEPTIONS

253002 Islandsflatssubmerged lands

253003 Federal property

253010 Housing nonprofits

253011 Nonprofits

253012 EDCs 20000 gt

Texas Local Govrsquot Code 272001

NOTICE OF SALE OR EXCHANGE OF LAND BY POLITICAL SUBDIVISION EXCEPTIONS

(a) Except for the types of land and interests covered by Subsection (b) (g) (h) (i) (j) or (l) and except as

provided by Section 253008 before land owned by a political subdivision of the state may be sold or

exchanged for other land notice to the general public of the offer of the land for sale or exchange must

be published in a newspaper of general circulation in either the county in which the land is located or if

there is no such newspaper in an adjoining county The notice must include a description of the land

including its location and the procedure by which sealed bids to purchase the land or offers to

exchange the land may be submitted The notice must be published on two separate dates and the sale

or exchange may not be made until after the 14th day after the date of the second publication

Sell to bidder providing ldquobest benefitrdquo

Texas Local Govrsquot Code 272001(b)

EXCEPTIONS

Narrow stripsweirdly-shaped

parcels of land

Streets or alleys

Independent foundation

Governmental entityeminent domain

Reinvestment zone

Texas Local Govrsquot Code 253014

BROKER AGREEMENTS AND FEES FOR SALE OF REAL

PROPERTY BY HOME-RULE MUNICIPALITIES

Governing body may contract with a broker to sell

must list the property for at least 30 days

Sell to ldquoready willing and able buyerrdquo who

submits ldquohighest cash offerrdquo

Texas Local Govrsquot Code 272001(j)

HIGHER EDUCATION

A political subdivision may donate

exchange convey sell or lease land

improvements or any other interest in real

property to an institution of higher

educationhellip to promote a public purpose

related to higher education The political

subdivision shall determine the terms and

conditions of the transaction so as to

effectuate and maintain the public purpose A

political subdivision may donate exchange

convey sell or lease the real property

interest for less than its fair market

value and without complying with

the notice and bidding requirements

of Subsection (a)

Texas Local Govrsquot Code 272001(l)

ANOTHER POLITICAL SUBDIVISION

hellip A political subdivision may donate or sell for less

than fair market value a designated parcel of land or

an interest in real property to another political

subdivision if

(1) the land or interest will be used by the political

subdivision to which it is donated or sold in carrying

out a purpose that benefits the public interest of the

donating or selling political subdivision

(2) the donation or sale of the land or interest is made

under terms that effect and maintain the public

purpose for which the donation or sale is made and

(3) the title and right to possession of the land or

interest revert to the donating or selling political

subdivision if the acquiring political subdivision ceases

to use the land or interest in carrying out the public

purpose

Texas Local Govrsquot Code 272001(g)

LOW- OR MODERATE-INCOME HOUSING

A political subdivision may acquire or assemble land or real property interest except by condemnation

and sell exchange or otherwise convey the land or interests to an entity for the development of low-

income or moderate-income housing The political subdivision shall determine the terms and conditions of

the transactions so as to effectuate and maintain the public purpose If conveyance of land under this

subsection serves a public purpose the land may be conveyed for less than its fair market value In this

subsection entity means an individual corporation partnership or other legal entity

Texas Local Govrsquot Code 253001

SALE OF PARK LAND MUNICIPAL BUILDING SITE OR ABANDONED ROADWAY

(a) hellipthe governing body of a municipality may sell and convey land or an interest in land that the municipality owns holds or claims as a public square park or site for the city hall or

other municipal building or that is an abandoned part of a street or alleyhellip

(b) Land owned held or claimed as a public square or park may not be sold

unless the issue of the sale is submitted to the qualified voters of the

municipality at an election and is approved by a majority of the votes

received at the electionhellip

ANDhellip Texas Parks and Wildlife Code Ch 26

26001 Findings no ldquofeasible and prudent alternativerdquo

26002 Notice and public hearing

DOCUMENTS

Deeds

Purchase and sale agreements

Surveys

Title Insurance

Closing Documents

DEEDS

Implied covenants Warranties

Tex Property Code Sec 5023

General warranty deed

1 Before title passes to grantee grantor has not conveyed

the estate or any interest in the estate to a person other

than the grantee and

2 At the time of conveyance the estate is free from

encumbrances

The GWD obligates the grantor to indemnify the grantee

against any loss resulting from a title defect or from any encumbrances that arose before the conveyance City of

Beaumont v Moore 202 SW2d 448 453 (Tex 1947)

Special warranty deed

The grantor warrants to defend the title conveyed to the

grantee only to the extent that claims are made by

through or under the grantor The SWD covers only title

defects going back to the grantor not to the grantorrsquos

predecessors in title

BTU By Through or Under

Tex Property Code Sec 5022(b)

Deed without warranty

The DWW passes grantorrsquos title to the grantee with an express

exclusion of warranties A DWW relieves the grantor of any

warranty responsibility for title defects yet provides the grantee a

true deed which transfers title--unlike a quitclaim

So if the grantor has title to the property but wonrsquot warrant title a

deed without warranty is preferable to a quitclaim

Quitclaim (not a) deed

Conveys only the right title and interest which may be none

Does not convey ldquoafter-acquiredrdquo title (title acquired after the date of the

execution and delivery of the quitclaim ldquodeedrdquo)

No recourse by the grantee or any subsequent owner of the property against the

grantor

A quitclaim gives notice to the grantee that title to the property may not be clear

so the grantee is not a bona fide purchaser for value

An adverse possessor cannot rely on a quitclaim as a basis for claiming title to

property under the Texas five-year limitations statute Tex Civ Prac amp Rem

Code sect 16025 Porter v Wilson 389 SW2d 650 (Tex 1965)

SALES CONTRACTS

Offer and Acceptance

Seller and Buyer

Property

Underwriter

Escrow Agent

Consideration

Earnest Money

County for Performance

Deadlines

Who (typically) pays

BUYER

Escrow fees

Document preparation

Recording charges for title transfer

Prorated share of taxes

Loan charges and fees

Title insurance premium

(lenderrsquos policy)

Survey

Inspection fees

Negotiable

SELLER

Escrow fees

Judgments liens against seller

Recording charges to clear

Title Insurance premium

(ownerrsquos policy)

Outstanding assessment

Prorated share of taxes

Delinquent taxes

Survey

1A Comprehensive

Focus is for

insuring title

Boundaries

Easements

Encumbrances

1B Boundary Survey

NOT for insuring title

Perimeters

Deed lines

Occupation lines

Rights of Way

Easements

Title Insurance

Texas Insurance Code Sec 2551003

The Texas Department of Insurance promulgates the Basic Manual

of Rules Rates and Forms for the Writing of Title Insurance in the

State of Texas (the Basic Manual)

Title commitments

Title policies

- Procedural Rules

- Rate Rules

- Forms of commitments policies coverage and

endorsements

- Claim procedures

- Bulletins issued by the Texas Department of

Insurance

Schedules

Schedule A-Commitment

Effective Date

Guaranty File (GF)

Type of Policy

Name of Insured

Nature of Interest

Record title owner

Legal description

Schedules

Schedule B-Exceptions to Coverage

Eight Standard Exceptions

- Restrictive Covenants

- Survey

- Homesteadcommunity property

- Streamwater rights

- Taxesassessments

- Docs creating insuredrsquos interests

- Construction

- Subordinate liens

Schedules

Schedule C-Curative Matters

Four Standard Requirements (Seller)

- Executionnotarizing docs

- Evidence of

- No parties in possession

- Taxes paid

- Improvements completedcontractors paid

- Legal access to property

- (alsomdashDeed of Trust is valid)

Schedule D-Disclosures

1 Who is the buyer (Governing law)

2 What kind of useproperty (Governing law) ndash

Highest bid FMV Appraisal

3 Negotiations

Deed

Purchase and sale agreementinterlocal

agreementother

Schedules and deadlines

Survey

Title commitment (buyer)

(becomes title insurance policy)

4 Closing documents

Execute Deed PSA

HUD settlement

statementdisclosuresaffidavits

In sumhellip

Page 3: Real Estate Issues for City Attorneys...Real Estate Issues for City Attorneys A Resource for Municipal Attorneys Who Don’t Speak Real Estate (featuring “Pinkacre”) Allison Bastian-Rodriguez,

(Pinkacre)

(Pinkacre)

(Pinkacre)

Texas Local Govrsquot Code 253008

SALE OF REAL PROPERTY BY PUBLIC AUCTION

(a) The governing body of a municipality may sell real property owned by the municipality by public

auction or by sealed bid under Section 272001

(b) To sell real property by public auction the governing body of a municipality shall publish notice of

the auction before the 20th day before the date the auction is held The notice for sale of the real

property must be published once a week for three consecutive weeks before the date the auction

is held in a newspaper of general circulation in the county in which the municipality is located and

if the real property is located in another county in a newspaper of general circulation in the

county in which the real property is located The notice must include a description of the real

property including its location and the date time and location at which the auction is to be held

Must be sold to highest bidder

Texas Local Govrsquot Code Ch 253

EXCEPTIONS

253002 Islandsflatssubmerged lands

253003 Federal property

253010 Housing nonprofits

253011 Nonprofits

253012 EDCs 20000 gt

Texas Local Govrsquot Code 272001

NOTICE OF SALE OR EXCHANGE OF LAND BY POLITICAL SUBDIVISION EXCEPTIONS

(a) Except for the types of land and interests covered by Subsection (b) (g) (h) (i) (j) or (l) and except as

provided by Section 253008 before land owned by a political subdivision of the state may be sold or

exchanged for other land notice to the general public of the offer of the land for sale or exchange must

be published in a newspaper of general circulation in either the county in which the land is located or if

there is no such newspaper in an adjoining county The notice must include a description of the land

including its location and the procedure by which sealed bids to purchase the land or offers to

exchange the land may be submitted The notice must be published on two separate dates and the sale

or exchange may not be made until after the 14th day after the date of the second publication

Sell to bidder providing ldquobest benefitrdquo

Texas Local Govrsquot Code 272001(b)

EXCEPTIONS

Narrow stripsweirdly-shaped

parcels of land

Streets or alleys

Independent foundation

Governmental entityeminent domain

Reinvestment zone

Texas Local Govrsquot Code 253014

BROKER AGREEMENTS AND FEES FOR SALE OF REAL

PROPERTY BY HOME-RULE MUNICIPALITIES

Governing body may contract with a broker to sell

must list the property for at least 30 days

Sell to ldquoready willing and able buyerrdquo who

submits ldquohighest cash offerrdquo

Texas Local Govrsquot Code 272001(j)

HIGHER EDUCATION

A political subdivision may donate

exchange convey sell or lease land

improvements or any other interest in real

property to an institution of higher

educationhellip to promote a public purpose

related to higher education The political

subdivision shall determine the terms and

conditions of the transaction so as to

effectuate and maintain the public purpose A

political subdivision may donate exchange

convey sell or lease the real property

interest for less than its fair market

value and without complying with

the notice and bidding requirements

of Subsection (a)

Texas Local Govrsquot Code 272001(l)

ANOTHER POLITICAL SUBDIVISION

hellip A political subdivision may donate or sell for less

than fair market value a designated parcel of land or

an interest in real property to another political

subdivision if

(1) the land or interest will be used by the political

subdivision to which it is donated or sold in carrying

out a purpose that benefits the public interest of the

donating or selling political subdivision

(2) the donation or sale of the land or interest is made

under terms that effect and maintain the public

purpose for which the donation or sale is made and

(3) the title and right to possession of the land or

interest revert to the donating or selling political

subdivision if the acquiring political subdivision ceases

to use the land or interest in carrying out the public

purpose

Texas Local Govrsquot Code 272001(g)

LOW- OR MODERATE-INCOME HOUSING

A political subdivision may acquire or assemble land or real property interest except by condemnation

and sell exchange or otherwise convey the land or interests to an entity for the development of low-

income or moderate-income housing The political subdivision shall determine the terms and conditions of

the transactions so as to effectuate and maintain the public purpose If conveyance of land under this

subsection serves a public purpose the land may be conveyed for less than its fair market value In this

subsection entity means an individual corporation partnership or other legal entity

Texas Local Govrsquot Code 253001

SALE OF PARK LAND MUNICIPAL BUILDING SITE OR ABANDONED ROADWAY

(a) hellipthe governing body of a municipality may sell and convey land or an interest in land that the municipality owns holds or claims as a public square park or site for the city hall or

other municipal building or that is an abandoned part of a street or alleyhellip

(b) Land owned held or claimed as a public square or park may not be sold

unless the issue of the sale is submitted to the qualified voters of the

municipality at an election and is approved by a majority of the votes

received at the electionhellip

ANDhellip Texas Parks and Wildlife Code Ch 26

26001 Findings no ldquofeasible and prudent alternativerdquo

26002 Notice and public hearing

DOCUMENTS

Deeds

Purchase and sale agreements

Surveys

Title Insurance

Closing Documents

DEEDS

Implied covenants Warranties

Tex Property Code Sec 5023

General warranty deed

1 Before title passes to grantee grantor has not conveyed

the estate or any interest in the estate to a person other

than the grantee and

2 At the time of conveyance the estate is free from

encumbrances

The GWD obligates the grantor to indemnify the grantee

against any loss resulting from a title defect or from any encumbrances that arose before the conveyance City of

Beaumont v Moore 202 SW2d 448 453 (Tex 1947)

Special warranty deed

The grantor warrants to defend the title conveyed to the

grantee only to the extent that claims are made by

through or under the grantor The SWD covers only title

defects going back to the grantor not to the grantorrsquos

predecessors in title

BTU By Through or Under

Tex Property Code Sec 5022(b)

Deed without warranty

The DWW passes grantorrsquos title to the grantee with an express

exclusion of warranties A DWW relieves the grantor of any

warranty responsibility for title defects yet provides the grantee a

true deed which transfers title--unlike a quitclaim

So if the grantor has title to the property but wonrsquot warrant title a

deed without warranty is preferable to a quitclaim

Quitclaim (not a) deed

Conveys only the right title and interest which may be none

Does not convey ldquoafter-acquiredrdquo title (title acquired after the date of the

execution and delivery of the quitclaim ldquodeedrdquo)

No recourse by the grantee or any subsequent owner of the property against the

grantor

A quitclaim gives notice to the grantee that title to the property may not be clear

so the grantee is not a bona fide purchaser for value

An adverse possessor cannot rely on a quitclaim as a basis for claiming title to

property under the Texas five-year limitations statute Tex Civ Prac amp Rem

Code sect 16025 Porter v Wilson 389 SW2d 650 (Tex 1965)

SALES CONTRACTS

Offer and Acceptance

Seller and Buyer

Property

Underwriter

Escrow Agent

Consideration

Earnest Money

County for Performance

Deadlines

Who (typically) pays

BUYER

Escrow fees

Document preparation

Recording charges for title transfer

Prorated share of taxes

Loan charges and fees

Title insurance premium

(lenderrsquos policy)

Survey

Inspection fees

Negotiable

SELLER

Escrow fees

Judgments liens against seller

Recording charges to clear

Title Insurance premium

(ownerrsquos policy)

Outstanding assessment

Prorated share of taxes

Delinquent taxes

Survey

1A Comprehensive

Focus is for

insuring title

Boundaries

Easements

Encumbrances

1B Boundary Survey

NOT for insuring title

Perimeters

Deed lines

Occupation lines

Rights of Way

Easements

Title Insurance

Texas Insurance Code Sec 2551003

The Texas Department of Insurance promulgates the Basic Manual

of Rules Rates and Forms for the Writing of Title Insurance in the

State of Texas (the Basic Manual)

Title commitments

Title policies

- Procedural Rules

- Rate Rules

- Forms of commitments policies coverage and

endorsements

- Claim procedures

- Bulletins issued by the Texas Department of

Insurance

Schedules

Schedule A-Commitment

Effective Date

Guaranty File (GF)

Type of Policy

Name of Insured

Nature of Interest

Record title owner

Legal description

Schedules

Schedule B-Exceptions to Coverage

Eight Standard Exceptions

- Restrictive Covenants

- Survey

- Homesteadcommunity property

- Streamwater rights

- Taxesassessments

- Docs creating insuredrsquos interests

- Construction

- Subordinate liens

Schedules

Schedule C-Curative Matters

Four Standard Requirements (Seller)

- Executionnotarizing docs

- Evidence of

- No parties in possession

- Taxes paid

- Improvements completedcontractors paid

- Legal access to property

- (alsomdashDeed of Trust is valid)

Schedule D-Disclosures

1 Who is the buyer (Governing law)

2 What kind of useproperty (Governing law) ndash

Highest bid FMV Appraisal

3 Negotiations

Deed

Purchase and sale agreementinterlocal

agreementother

Schedules and deadlines

Survey

Title commitment (buyer)

(becomes title insurance policy)

4 Closing documents

Execute Deed PSA

HUD settlement

statementdisclosuresaffidavits

In sumhellip

Page 4: Real Estate Issues for City Attorneys...Real Estate Issues for City Attorneys A Resource for Municipal Attorneys Who Don’t Speak Real Estate (featuring “Pinkacre”) Allison Bastian-Rodriguez,

(Pinkacre)

(Pinkacre)

Texas Local Govrsquot Code 253008

SALE OF REAL PROPERTY BY PUBLIC AUCTION

(a) The governing body of a municipality may sell real property owned by the municipality by public

auction or by sealed bid under Section 272001

(b) To sell real property by public auction the governing body of a municipality shall publish notice of

the auction before the 20th day before the date the auction is held The notice for sale of the real

property must be published once a week for three consecutive weeks before the date the auction

is held in a newspaper of general circulation in the county in which the municipality is located and

if the real property is located in another county in a newspaper of general circulation in the

county in which the real property is located The notice must include a description of the real

property including its location and the date time and location at which the auction is to be held

Must be sold to highest bidder

Texas Local Govrsquot Code Ch 253

EXCEPTIONS

253002 Islandsflatssubmerged lands

253003 Federal property

253010 Housing nonprofits

253011 Nonprofits

253012 EDCs 20000 gt

Texas Local Govrsquot Code 272001

NOTICE OF SALE OR EXCHANGE OF LAND BY POLITICAL SUBDIVISION EXCEPTIONS

(a) Except for the types of land and interests covered by Subsection (b) (g) (h) (i) (j) or (l) and except as

provided by Section 253008 before land owned by a political subdivision of the state may be sold or

exchanged for other land notice to the general public of the offer of the land for sale or exchange must

be published in a newspaper of general circulation in either the county in which the land is located or if

there is no such newspaper in an adjoining county The notice must include a description of the land

including its location and the procedure by which sealed bids to purchase the land or offers to

exchange the land may be submitted The notice must be published on two separate dates and the sale

or exchange may not be made until after the 14th day after the date of the second publication

Sell to bidder providing ldquobest benefitrdquo

Texas Local Govrsquot Code 272001(b)

EXCEPTIONS

Narrow stripsweirdly-shaped

parcels of land

Streets or alleys

Independent foundation

Governmental entityeminent domain

Reinvestment zone

Texas Local Govrsquot Code 253014

BROKER AGREEMENTS AND FEES FOR SALE OF REAL

PROPERTY BY HOME-RULE MUNICIPALITIES

Governing body may contract with a broker to sell

must list the property for at least 30 days

Sell to ldquoready willing and able buyerrdquo who

submits ldquohighest cash offerrdquo

Texas Local Govrsquot Code 272001(j)

HIGHER EDUCATION

A political subdivision may donate

exchange convey sell or lease land

improvements or any other interest in real

property to an institution of higher

educationhellip to promote a public purpose

related to higher education The political

subdivision shall determine the terms and

conditions of the transaction so as to

effectuate and maintain the public purpose A

political subdivision may donate exchange

convey sell or lease the real property

interest for less than its fair market

value and without complying with

the notice and bidding requirements

of Subsection (a)

Texas Local Govrsquot Code 272001(l)

ANOTHER POLITICAL SUBDIVISION

hellip A political subdivision may donate or sell for less

than fair market value a designated parcel of land or

an interest in real property to another political

subdivision if

(1) the land or interest will be used by the political

subdivision to which it is donated or sold in carrying

out a purpose that benefits the public interest of the

donating or selling political subdivision

(2) the donation or sale of the land or interest is made

under terms that effect and maintain the public

purpose for which the donation or sale is made and

(3) the title and right to possession of the land or

interest revert to the donating or selling political

subdivision if the acquiring political subdivision ceases

to use the land or interest in carrying out the public

purpose

Texas Local Govrsquot Code 272001(g)

LOW- OR MODERATE-INCOME HOUSING

A political subdivision may acquire or assemble land or real property interest except by condemnation

and sell exchange or otherwise convey the land or interests to an entity for the development of low-

income or moderate-income housing The political subdivision shall determine the terms and conditions of

the transactions so as to effectuate and maintain the public purpose If conveyance of land under this

subsection serves a public purpose the land may be conveyed for less than its fair market value In this

subsection entity means an individual corporation partnership or other legal entity

Texas Local Govrsquot Code 253001

SALE OF PARK LAND MUNICIPAL BUILDING SITE OR ABANDONED ROADWAY

(a) hellipthe governing body of a municipality may sell and convey land or an interest in land that the municipality owns holds or claims as a public square park or site for the city hall or

other municipal building or that is an abandoned part of a street or alleyhellip

(b) Land owned held or claimed as a public square or park may not be sold

unless the issue of the sale is submitted to the qualified voters of the

municipality at an election and is approved by a majority of the votes

received at the electionhellip

ANDhellip Texas Parks and Wildlife Code Ch 26

26001 Findings no ldquofeasible and prudent alternativerdquo

26002 Notice and public hearing

DOCUMENTS

Deeds

Purchase and sale agreements

Surveys

Title Insurance

Closing Documents

DEEDS

Implied covenants Warranties

Tex Property Code Sec 5023

General warranty deed

1 Before title passes to grantee grantor has not conveyed

the estate or any interest in the estate to a person other

than the grantee and

2 At the time of conveyance the estate is free from

encumbrances

The GWD obligates the grantor to indemnify the grantee

against any loss resulting from a title defect or from any encumbrances that arose before the conveyance City of

Beaumont v Moore 202 SW2d 448 453 (Tex 1947)

Special warranty deed

The grantor warrants to defend the title conveyed to the

grantee only to the extent that claims are made by

through or under the grantor The SWD covers only title

defects going back to the grantor not to the grantorrsquos

predecessors in title

BTU By Through or Under

Tex Property Code Sec 5022(b)

Deed without warranty

The DWW passes grantorrsquos title to the grantee with an express

exclusion of warranties A DWW relieves the grantor of any

warranty responsibility for title defects yet provides the grantee a

true deed which transfers title--unlike a quitclaim

So if the grantor has title to the property but wonrsquot warrant title a

deed without warranty is preferable to a quitclaim

Quitclaim (not a) deed

Conveys only the right title and interest which may be none

Does not convey ldquoafter-acquiredrdquo title (title acquired after the date of the

execution and delivery of the quitclaim ldquodeedrdquo)

No recourse by the grantee or any subsequent owner of the property against the

grantor

A quitclaim gives notice to the grantee that title to the property may not be clear

so the grantee is not a bona fide purchaser for value

An adverse possessor cannot rely on a quitclaim as a basis for claiming title to

property under the Texas five-year limitations statute Tex Civ Prac amp Rem

Code sect 16025 Porter v Wilson 389 SW2d 650 (Tex 1965)

SALES CONTRACTS

Offer and Acceptance

Seller and Buyer

Property

Underwriter

Escrow Agent

Consideration

Earnest Money

County for Performance

Deadlines

Who (typically) pays

BUYER

Escrow fees

Document preparation

Recording charges for title transfer

Prorated share of taxes

Loan charges and fees

Title insurance premium

(lenderrsquos policy)

Survey

Inspection fees

Negotiable

SELLER

Escrow fees

Judgments liens against seller

Recording charges to clear

Title Insurance premium

(ownerrsquos policy)

Outstanding assessment

Prorated share of taxes

Delinquent taxes

Survey

1A Comprehensive

Focus is for

insuring title

Boundaries

Easements

Encumbrances

1B Boundary Survey

NOT for insuring title

Perimeters

Deed lines

Occupation lines

Rights of Way

Easements

Title Insurance

Texas Insurance Code Sec 2551003

The Texas Department of Insurance promulgates the Basic Manual

of Rules Rates and Forms for the Writing of Title Insurance in the

State of Texas (the Basic Manual)

Title commitments

Title policies

- Procedural Rules

- Rate Rules

- Forms of commitments policies coverage and

endorsements

- Claim procedures

- Bulletins issued by the Texas Department of

Insurance

Schedules

Schedule A-Commitment

Effective Date

Guaranty File (GF)

Type of Policy

Name of Insured

Nature of Interest

Record title owner

Legal description

Schedules

Schedule B-Exceptions to Coverage

Eight Standard Exceptions

- Restrictive Covenants

- Survey

- Homesteadcommunity property

- Streamwater rights

- Taxesassessments

- Docs creating insuredrsquos interests

- Construction

- Subordinate liens

Schedules

Schedule C-Curative Matters

Four Standard Requirements (Seller)

- Executionnotarizing docs

- Evidence of

- No parties in possession

- Taxes paid

- Improvements completedcontractors paid

- Legal access to property

- (alsomdashDeed of Trust is valid)

Schedule D-Disclosures

1 Who is the buyer (Governing law)

2 What kind of useproperty (Governing law) ndash

Highest bid FMV Appraisal

3 Negotiations

Deed

Purchase and sale agreementinterlocal

agreementother

Schedules and deadlines

Survey

Title commitment (buyer)

(becomes title insurance policy)

4 Closing documents

Execute Deed PSA

HUD settlement

statementdisclosuresaffidavits

In sumhellip

Page 5: Real Estate Issues for City Attorneys...Real Estate Issues for City Attorneys A Resource for Municipal Attorneys Who Don’t Speak Real Estate (featuring “Pinkacre”) Allison Bastian-Rodriguez,

(Pinkacre)

Texas Local Govrsquot Code 253008

SALE OF REAL PROPERTY BY PUBLIC AUCTION

(a) The governing body of a municipality may sell real property owned by the municipality by public

auction or by sealed bid under Section 272001

(b) To sell real property by public auction the governing body of a municipality shall publish notice of

the auction before the 20th day before the date the auction is held The notice for sale of the real

property must be published once a week for three consecutive weeks before the date the auction

is held in a newspaper of general circulation in the county in which the municipality is located and

if the real property is located in another county in a newspaper of general circulation in the

county in which the real property is located The notice must include a description of the real

property including its location and the date time and location at which the auction is to be held

Must be sold to highest bidder

Texas Local Govrsquot Code Ch 253

EXCEPTIONS

253002 Islandsflatssubmerged lands

253003 Federal property

253010 Housing nonprofits

253011 Nonprofits

253012 EDCs 20000 gt

Texas Local Govrsquot Code 272001

NOTICE OF SALE OR EXCHANGE OF LAND BY POLITICAL SUBDIVISION EXCEPTIONS

(a) Except for the types of land and interests covered by Subsection (b) (g) (h) (i) (j) or (l) and except as

provided by Section 253008 before land owned by a political subdivision of the state may be sold or

exchanged for other land notice to the general public of the offer of the land for sale or exchange must

be published in a newspaper of general circulation in either the county in which the land is located or if

there is no such newspaper in an adjoining county The notice must include a description of the land

including its location and the procedure by which sealed bids to purchase the land or offers to

exchange the land may be submitted The notice must be published on two separate dates and the sale

or exchange may not be made until after the 14th day after the date of the second publication

Sell to bidder providing ldquobest benefitrdquo

Texas Local Govrsquot Code 272001(b)

EXCEPTIONS

Narrow stripsweirdly-shaped

parcels of land

Streets or alleys

Independent foundation

Governmental entityeminent domain

Reinvestment zone

Texas Local Govrsquot Code 253014

BROKER AGREEMENTS AND FEES FOR SALE OF REAL

PROPERTY BY HOME-RULE MUNICIPALITIES

Governing body may contract with a broker to sell

must list the property for at least 30 days

Sell to ldquoready willing and able buyerrdquo who

submits ldquohighest cash offerrdquo

Texas Local Govrsquot Code 272001(j)

HIGHER EDUCATION

A political subdivision may donate

exchange convey sell or lease land

improvements or any other interest in real

property to an institution of higher

educationhellip to promote a public purpose

related to higher education The political

subdivision shall determine the terms and

conditions of the transaction so as to

effectuate and maintain the public purpose A

political subdivision may donate exchange

convey sell or lease the real property

interest for less than its fair market

value and without complying with

the notice and bidding requirements

of Subsection (a)

Texas Local Govrsquot Code 272001(l)

ANOTHER POLITICAL SUBDIVISION

hellip A political subdivision may donate or sell for less

than fair market value a designated parcel of land or

an interest in real property to another political

subdivision if

(1) the land or interest will be used by the political

subdivision to which it is donated or sold in carrying

out a purpose that benefits the public interest of the

donating or selling political subdivision

(2) the donation or sale of the land or interest is made

under terms that effect and maintain the public

purpose for which the donation or sale is made and

(3) the title and right to possession of the land or

interest revert to the donating or selling political

subdivision if the acquiring political subdivision ceases

to use the land or interest in carrying out the public

purpose

Texas Local Govrsquot Code 272001(g)

LOW- OR MODERATE-INCOME HOUSING

A political subdivision may acquire or assemble land or real property interest except by condemnation

and sell exchange or otherwise convey the land or interests to an entity for the development of low-

income or moderate-income housing The political subdivision shall determine the terms and conditions of

the transactions so as to effectuate and maintain the public purpose If conveyance of land under this

subsection serves a public purpose the land may be conveyed for less than its fair market value In this

subsection entity means an individual corporation partnership or other legal entity

Texas Local Govrsquot Code 253001

SALE OF PARK LAND MUNICIPAL BUILDING SITE OR ABANDONED ROADWAY

(a) hellipthe governing body of a municipality may sell and convey land or an interest in land that the municipality owns holds or claims as a public square park or site for the city hall or

other municipal building or that is an abandoned part of a street or alleyhellip

(b) Land owned held or claimed as a public square or park may not be sold

unless the issue of the sale is submitted to the qualified voters of the

municipality at an election and is approved by a majority of the votes

received at the electionhellip

ANDhellip Texas Parks and Wildlife Code Ch 26

26001 Findings no ldquofeasible and prudent alternativerdquo

26002 Notice and public hearing

DOCUMENTS

Deeds

Purchase and sale agreements

Surveys

Title Insurance

Closing Documents

DEEDS

Implied covenants Warranties

Tex Property Code Sec 5023

General warranty deed

1 Before title passes to grantee grantor has not conveyed

the estate or any interest in the estate to a person other

than the grantee and

2 At the time of conveyance the estate is free from

encumbrances

The GWD obligates the grantor to indemnify the grantee

against any loss resulting from a title defect or from any encumbrances that arose before the conveyance City of

Beaumont v Moore 202 SW2d 448 453 (Tex 1947)

Special warranty deed

The grantor warrants to defend the title conveyed to the

grantee only to the extent that claims are made by

through or under the grantor The SWD covers only title

defects going back to the grantor not to the grantorrsquos

predecessors in title

BTU By Through or Under

Tex Property Code Sec 5022(b)

Deed without warranty

The DWW passes grantorrsquos title to the grantee with an express

exclusion of warranties A DWW relieves the grantor of any

warranty responsibility for title defects yet provides the grantee a

true deed which transfers title--unlike a quitclaim

So if the grantor has title to the property but wonrsquot warrant title a

deed without warranty is preferable to a quitclaim

Quitclaim (not a) deed

Conveys only the right title and interest which may be none

Does not convey ldquoafter-acquiredrdquo title (title acquired after the date of the

execution and delivery of the quitclaim ldquodeedrdquo)

No recourse by the grantee or any subsequent owner of the property against the

grantor

A quitclaim gives notice to the grantee that title to the property may not be clear

so the grantee is not a bona fide purchaser for value

An adverse possessor cannot rely on a quitclaim as a basis for claiming title to

property under the Texas five-year limitations statute Tex Civ Prac amp Rem

Code sect 16025 Porter v Wilson 389 SW2d 650 (Tex 1965)

SALES CONTRACTS

Offer and Acceptance

Seller and Buyer

Property

Underwriter

Escrow Agent

Consideration

Earnest Money

County for Performance

Deadlines

Who (typically) pays

BUYER

Escrow fees

Document preparation

Recording charges for title transfer

Prorated share of taxes

Loan charges and fees

Title insurance premium

(lenderrsquos policy)

Survey

Inspection fees

Negotiable

SELLER

Escrow fees

Judgments liens against seller

Recording charges to clear

Title Insurance premium

(ownerrsquos policy)

Outstanding assessment

Prorated share of taxes

Delinquent taxes

Survey

1A Comprehensive

Focus is for

insuring title

Boundaries

Easements

Encumbrances

1B Boundary Survey

NOT for insuring title

Perimeters

Deed lines

Occupation lines

Rights of Way

Easements

Title Insurance

Texas Insurance Code Sec 2551003

The Texas Department of Insurance promulgates the Basic Manual

of Rules Rates and Forms for the Writing of Title Insurance in the

State of Texas (the Basic Manual)

Title commitments

Title policies

- Procedural Rules

- Rate Rules

- Forms of commitments policies coverage and

endorsements

- Claim procedures

- Bulletins issued by the Texas Department of

Insurance

Schedules

Schedule A-Commitment

Effective Date

Guaranty File (GF)

Type of Policy

Name of Insured

Nature of Interest

Record title owner

Legal description

Schedules

Schedule B-Exceptions to Coverage

Eight Standard Exceptions

- Restrictive Covenants

- Survey

- Homesteadcommunity property

- Streamwater rights

- Taxesassessments

- Docs creating insuredrsquos interests

- Construction

- Subordinate liens

Schedules

Schedule C-Curative Matters

Four Standard Requirements (Seller)

- Executionnotarizing docs

- Evidence of

- No parties in possession

- Taxes paid

- Improvements completedcontractors paid

- Legal access to property

- (alsomdashDeed of Trust is valid)

Schedule D-Disclosures

1 Who is the buyer (Governing law)

2 What kind of useproperty (Governing law) ndash

Highest bid FMV Appraisal

3 Negotiations

Deed

Purchase and sale agreementinterlocal

agreementother

Schedules and deadlines

Survey

Title commitment (buyer)

(becomes title insurance policy)

4 Closing documents

Execute Deed PSA

HUD settlement

statementdisclosuresaffidavits

In sumhellip

Page 6: Real Estate Issues for City Attorneys...Real Estate Issues for City Attorneys A Resource for Municipal Attorneys Who Don’t Speak Real Estate (featuring “Pinkacre”) Allison Bastian-Rodriguez,

Texas Local Govrsquot Code 253008

SALE OF REAL PROPERTY BY PUBLIC AUCTION

(a) The governing body of a municipality may sell real property owned by the municipality by public

auction or by sealed bid under Section 272001

(b) To sell real property by public auction the governing body of a municipality shall publish notice of

the auction before the 20th day before the date the auction is held The notice for sale of the real

property must be published once a week for three consecutive weeks before the date the auction

is held in a newspaper of general circulation in the county in which the municipality is located and

if the real property is located in another county in a newspaper of general circulation in the

county in which the real property is located The notice must include a description of the real

property including its location and the date time and location at which the auction is to be held

Must be sold to highest bidder

Texas Local Govrsquot Code Ch 253

EXCEPTIONS

253002 Islandsflatssubmerged lands

253003 Federal property

253010 Housing nonprofits

253011 Nonprofits

253012 EDCs 20000 gt

Texas Local Govrsquot Code 272001

NOTICE OF SALE OR EXCHANGE OF LAND BY POLITICAL SUBDIVISION EXCEPTIONS

(a) Except for the types of land and interests covered by Subsection (b) (g) (h) (i) (j) or (l) and except as

provided by Section 253008 before land owned by a political subdivision of the state may be sold or

exchanged for other land notice to the general public of the offer of the land for sale or exchange must

be published in a newspaper of general circulation in either the county in which the land is located or if

there is no such newspaper in an adjoining county The notice must include a description of the land

including its location and the procedure by which sealed bids to purchase the land or offers to

exchange the land may be submitted The notice must be published on two separate dates and the sale

or exchange may not be made until after the 14th day after the date of the second publication

Sell to bidder providing ldquobest benefitrdquo

Texas Local Govrsquot Code 272001(b)

EXCEPTIONS

Narrow stripsweirdly-shaped

parcels of land

Streets or alleys

Independent foundation

Governmental entityeminent domain

Reinvestment zone

Texas Local Govrsquot Code 253014

BROKER AGREEMENTS AND FEES FOR SALE OF REAL

PROPERTY BY HOME-RULE MUNICIPALITIES

Governing body may contract with a broker to sell

must list the property for at least 30 days

Sell to ldquoready willing and able buyerrdquo who

submits ldquohighest cash offerrdquo

Texas Local Govrsquot Code 272001(j)

HIGHER EDUCATION

A political subdivision may donate

exchange convey sell or lease land

improvements or any other interest in real

property to an institution of higher

educationhellip to promote a public purpose

related to higher education The political

subdivision shall determine the terms and

conditions of the transaction so as to

effectuate and maintain the public purpose A

political subdivision may donate exchange

convey sell or lease the real property

interest for less than its fair market

value and without complying with

the notice and bidding requirements

of Subsection (a)

Texas Local Govrsquot Code 272001(l)

ANOTHER POLITICAL SUBDIVISION

hellip A political subdivision may donate or sell for less

than fair market value a designated parcel of land or

an interest in real property to another political

subdivision if

(1) the land or interest will be used by the political

subdivision to which it is donated or sold in carrying

out a purpose that benefits the public interest of the

donating or selling political subdivision

(2) the donation or sale of the land or interest is made

under terms that effect and maintain the public

purpose for which the donation or sale is made and

(3) the title and right to possession of the land or

interest revert to the donating or selling political

subdivision if the acquiring political subdivision ceases

to use the land or interest in carrying out the public

purpose

Texas Local Govrsquot Code 272001(g)

LOW- OR MODERATE-INCOME HOUSING

A political subdivision may acquire or assemble land or real property interest except by condemnation

and sell exchange or otherwise convey the land or interests to an entity for the development of low-

income or moderate-income housing The political subdivision shall determine the terms and conditions of

the transactions so as to effectuate and maintain the public purpose If conveyance of land under this

subsection serves a public purpose the land may be conveyed for less than its fair market value In this

subsection entity means an individual corporation partnership or other legal entity

Texas Local Govrsquot Code 253001

SALE OF PARK LAND MUNICIPAL BUILDING SITE OR ABANDONED ROADWAY

(a) hellipthe governing body of a municipality may sell and convey land or an interest in land that the municipality owns holds or claims as a public square park or site for the city hall or

other municipal building or that is an abandoned part of a street or alleyhellip

(b) Land owned held or claimed as a public square or park may not be sold

unless the issue of the sale is submitted to the qualified voters of the

municipality at an election and is approved by a majority of the votes

received at the electionhellip

ANDhellip Texas Parks and Wildlife Code Ch 26

26001 Findings no ldquofeasible and prudent alternativerdquo

26002 Notice and public hearing

DOCUMENTS

Deeds

Purchase and sale agreements

Surveys

Title Insurance

Closing Documents

DEEDS

Implied covenants Warranties

Tex Property Code Sec 5023

General warranty deed

1 Before title passes to grantee grantor has not conveyed

the estate or any interest in the estate to a person other

than the grantee and

2 At the time of conveyance the estate is free from

encumbrances

The GWD obligates the grantor to indemnify the grantee

against any loss resulting from a title defect or from any encumbrances that arose before the conveyance City of

Beaumont v Moore 202 SW2d 448 453 (Tex 1947)

Special warranty deed

The grantor warrants to defend the title conveyed to the

grantee only to the extent that claims are made by

through or under the grantor The SWD covers only title

defects going back to the grantor not to the grantorrsquos

predecessors in title

BTU By Through or Under

Tex Property Code Sec 5022(b)

Deed without warranty

The DWW passes grantorrsquos title to the grantee with an express

exclusion of warranties A DWW relieves the grantor of any

warranty responsibility for title defects yet provides the grantee a

true deed which transfers title--unlike a quitclaim

So if the grantor has title to the property but wonrsquot warrant title a

deed without warranty is preferable to a quitclaim

Quitclaim (not a) deed

Conveys only the right title and interest which may be none

Does not convey ldquoafter-acquiredrdquo title (title acquired after the date of the

execution and delivery of the quitclaim ldquodeedrdquo)

No recourse by the grantee or any subsequent owner of the property against the

grantor

A quitclaim gives notice to the grantee that title to the property may not be clear

so the grantee is not a bona fide purchaser for value

An adverse possessor cannot rely on a quitclaim as a basis for claiming title to

property under the Texas five-year limitations statute Tex Civ Prac amp Rem

Code sect 16025 Porter v Wilson 389 SW2d 650 (Tex 1965)

SALES CONTRACTS

Offer and Acceptance

Seller and Buyer

Property

Underwriter

Escrow Agent

Consideration

Earnest Money

County for Performance

Deadlines

Who (typically) pays

BUYER

Escrow fees

Document preparation

Recording charges for title transfer

Prorated share of taxes

Loan charges and fees

Title insurance premium

(lenderrsquos policy)

Survey

Inspection fees

Negotiable

SELLER

Escrow fees

Judgments liens against seller

Recording charges to clear

Title Insurance premium

(ownerrsquos policy)

Outstanding assessment

Prorated share of taxes

Delinquent taxes

Survey

1A Comprehensive

Focus is for

insuring title

Boundaries

Easements

Encumbrances

1B Boundary Survey

NOT for insuring title

Perimeters

Deed lines

Occupation lines

Rights of Way

Easements

Title Insurance

Texas Insurance Code Sec 2551003

The Texas Department of Insurance promulgates the Basic Manual

of Rules Rates and Forms for the Writing of Title Insurance in the

State of Texas (the Basic Manual)

Title commitments

Title policies

- Procedural Rules

- Rate Rules

- Forms of commitments policies coverage and

endorsements

- Claim procedures

- Bulletins issued by the Texas Department of

Insurance

Schedules

Schedule A-Commitment

Effective Date

Guaranty File (GF)

Type of Policy

Name of Insured

Nature of Interest

Record title owner

Legal description

Schedules

Schedule B-Exceptions to Coverage

Eight Standard Exceptions

- Restrictive Covenants

- Survey

- Homesteadcommunity property

- Streamwater rights

- Taxesassessments

- Docs creating insuredrsquos interests

- Construction

- Subordinate liens

Schedules

Schedule C-Curative Matters

Four Standard Requirements (Seller)

- Executionnotarizing docs

- Evidence of

- No parties in possession

- Taxes paid

- Improvements completedcontractors paid

- Legal access to property

- (alsomdashDeed of Trust is valid)

Schedule D-Disclosures

1 Who is the buyer (Governing law)

2 What kind of useproperty (Governing law) ndash

Highest bid FMV Appraisal

3 Negotiations

Deed

Purchase and sale agreementinterlocal

agreementother

Schedules and deadlines

Survey

Title commitment (buyer)

(becomes title insurance policy)

4 Closing documents

Execute Deed PSA

HUD settlement

statementdisclosuresaffidavits

In sumhellip

Page 7: Real Estate Issues for City Attorneys...Real Estate Issues for City Attorneys A Resource for Municipal Attorneys Who Don’t Speak Real Estate (featuring “Pinkacre”) Allison Bastian-Rodriguez,

Texas Local Govrsquot Code Ch 253

EXCEPTIONS

253002 Islandsflatssubmerged lands

253003 Federal property

253010 Housing nonprofits

253011 Nonprofits

253012 EDCs 20000 gt

Texas Local Govrsquot Code 272001

NOTICE OF SALE OR EXCHANGE OF LAND BY POLITICAL SUBDIVISION EXCEPTIONS

(a) Except for the types of land and interests covered by Subsection (b) (g) (h) (i) (j) or (l) and except as

provided by Section 253008 before land owned by a political subdivision of the state may be sold or

exchanged for other land notice to the general public of the offer of the land for sale or exchange must

be published in a newspaper of general circulation in either the county in which the land is located or if

there is no such newspaper in an adjoining county The notice must include a description of the land

including its location and the procedure by which sealed bids to purchase the land or offers to

exchange the land may be submitted The notice must be published on two separate dates and the sale

or exchange may not be made until after the 14th day after the date of the second publication

Sell to bidder providing ldquobest benefitrdquo

Texas Local Govrsquot Code 272001(b)

EXCEPTIONS

Narrow stripsweirdly-shaped

parcels of land

Streets or alleys

Independent foundation

Governmental entityeminent domain

Reinvestment zone

Texas Local Govrsquot Code 253014

BROKER AGREEMENTS AND FEES FOR SALE OF REAL

PROPERTY BY HOME-RULE MUNICIPALITIES

Governing body may contract with a broker to sell

must list the property for at least 30 days

Sell to ldquoready willing and able buyerrdquo who

submits ldquohighest cash offerrdquo

Texas Local Govrsquot Code 272001(j)

HIGHER EDUCATION

A political subdivision may donate

exchange convey sell or lease land

improvements or any other interest in real

property to an institution of higher

educationhellip to promote a public purpose

related to higher education The political

subdivision shall determine the terms and

conditions of the transaction so as to

effectuate and maintain the public purpose A

political subdivision may donate exchange

convey sell or lease the real property

interest for less than its fair market

value and without complying with

the notice and bidding requirements

of Subsection (a)

Texas Local Govrsquot Code 272001(l)

ANOTHER POLITICAL SUBDIVISION

hellip A political subdivision may donate or sell for less

than fair market value a designated parcel of land or

an interest in real property to another political

subdivision if

(1) the land or interest will be used by the political

subdivision to which it is donated or sold in carrying

out a purpose that benefits the public interest of the

donating or selling political subdivision

(2) the donation or sale of the land or interest is made

under terms that effect and maintain the public

purpose for which the donation or sale is made and

(3) the title and right to possession of the land or

interest revert to the donating or selling political

subdivision if the acquiring political subdivision ceases

to use the land or interest in carrying out the public

purpose

Texas Local Govrsquot Code 272001(g)

LOW- OR MODERATE-INCOME HOUSING

A political subdivision may acquire or assemble land or real property interest except by condemnation

and sell exchange or otherwise convey the land or interests to an entity for the development of low-

income or moderate-income housing The political subdivision shall determine the terms and conditions of

the transactions so as to effectuate and maintain the public purpose If conveyance of land under this

subsection serves a public purpose the land may be conveyed for less than its fair market value In this

subsection entity means an individual corporation partnership or other legal entity

Texas Local Govrsquot Code 253001

SALE OF PARK LAND MUNICIPAL BUILDING SITE OR ABANDONED ROADWAY

(a) hellipthe governing body of a municipality may sell and convey land or an interest in land that the municipality owns holds or claims as a public square park or site for the city hall or

other municipal building or that is an abandoned part of a street or alleyhellip

(b) Land owned held or claimed as a public square or park may not be sold

unless the issue of the sale is submitted to the qualified voters of the

municipality at an election and is approved by a majority of the votes

received at the electionhellip

ANDhellip Texas Parks and Wildlife Code Ch 26

26001 Findings no ldquofeasible and prudent alternativerdquo

26002 Notice and public hearing

DOCUMENTS

Deeds

Purchase and sale agreements

Surveys

Title Insurance

Closing Documents

DEEDS

Implied covenants Warranties

Tex Property Code Sec 5023

General warranty deed

1 Before title passes to grantee grantor has not conveyed

the estate or any interest in the estate to a person other

than the grantee and

2 At the time of conveyance the estate is free from

encumbrances

The GWD obligates the grantor to indemnify the grantee

against any loss resulting from a title defect or from any encumbrances that arose before the conveyance City of

Beaumont v Moore 202 SW2d 448 453 (Tex 1947)

Special warranty deed

The grantor warrants to defend the title conveyed to the

grantee only to the extent that claims are made by

through or under the grantor The SWD covers only title

defects going back to the grantor not to the grantorrsquos

predecessors in title

BTU By Through or Under

Tex Property Code Sec 5022(b)

Deed without warranty

The DWW passes grantorrsquos title to the grantee with an express

exclusion of warranties A DWW relieves the grantor of any

warranty responsibility for title defects yet provides the grantee a

true deed which transfers title--unlike a quitclaim

So if the grantor has title to the property but wonrsquot warrant title a

deed without warranty is preferable to a quitclaim

Quitclaim (not a) deed

Conveys only the right title and interest which may be none

Does not convey ldquoafter-acquiredrdquo title (title acquired after the date of the

execution and delivery of the quitclaim ldquodeedrdquo)

No recourse by the grantee or any subsequent owner of the property against the

grantor

A quitclaim gives notice to the grantee that title to the property may not be clear

so the grantee is not a bona fide purchaser for value

An adverse possessor cannot rely on a quitclaim as a basis for claiming title to

property under the Texas five-year limitations statute Tex Civ Prac amp Rem

Code sect 16025 Porter v Wilson 389 SW2d 650 (Tex 1965)

SALES CONTRACTS

Offer and Acceptance

Seller and Buyer

Property

Underwriter

Escrow Agent

Consideration

Earnest Money

County for Performance

Deadlines

Who (typically) pays

BUYER

Escrow fees

Document preparation

Recording charges for title transfer

Prorated share of taxes

Loan charges and fees

Title insurance premium

(lenderrsquos policy)

Survey

Inspection fees

Negotiable

SELLER

Escrow fees

Judgments liens against seller

Recording charges to clear

Title Insurance premium

(ownerrsquos policy)

Outstanding assessment

Prorated share of taxes

Delinquent taxes

Survey

1A Comprehensive

Focus is for

insuring title

Boundaries

Easements

Encumbrances

1B Boundary Survey

NOT for insuring title

Perimeters

Deed lines

Occupation lines

Rights of Way

Easements

Title Insurance

Texas Insurance Code Sec 2551003

The Texas Department of Insurance promulgates the Basic Manual

of Rules Rates and Forms for the Writing of Title Insurance in the

State of Texas (the Basic Manual)

Title commitments

Title policies

- Procedural Rules

- Rate Rules

- Forms of commitments policies coverage and

endorsements

- Claim procedures

- Bulletins issued by the Texas Department of

Insurance

Schedules

Schedule A-Commitment

Effective Date

Guaranty File (GF)

Type of Policy

Name of Insured

Nature of Interest

Record title owner

Legal description

Schedules

Schedule B-Exceptions to Coverage

Eight Standard Exceptions

- Restrictive Covenants

- Survey

- Homesteadcommunity property

- Streamwater rights

- Taxesassessments

- Docs creating insuredrsquos interests

- Construction

- Subordinate liens

Schedules

Schedule C-Curative Matters

Four Standard Requirements (Seller)

- Executionnotarizing docs

- Evidence of

- No parties in possession

- Taxes paid

- Improvements completedcontractors paid

- Legal access to property

- (alsomdashDeed of Trust is valid)

Schedule D-Disclosures

1 Who is the buyer (Governing law)

2 What kind of useproperty (Governing law) ndash

Highest bid FMV Appraisal

3 Negotiations

Deed

Purchase and sale agreementinterlocal

agreementother

Schedules and deadlines

Survey

Title commitment (buyer)

(becomes title insurance policy)

4 Closing documents

Execute Deed PSA

HUD settlement

statementdisclosuresaffidavits

In sumhellip

Page 8: Real Estate Issues for City Attorneys...Real Estate Issues for City Attorneys A Resource for Municipal Attorneys Who Don’t Speak Real Estate (featuring “Pinkacre”) Allison Bastian-Rodriguez,

Texas Local Govrsquot Code 272001

NOTICE OF SALE OR EXCHANGE OF LAND BY POLITICAL SUBDIVISION EXCEPTIONS

(a) Except for the types of land and interests covered by Subsection (b) (g) (h) (i) (j) or (l) and except as

provided by Section 253008 before land owned by a political subdivision of the state may be sold or

exchanged for other land notice to the general public of the offer of the land for sale or exchange must

be published in a newspaper of general circulation in either the county in which the land is located or if

there is no such newspaper in an adjoining county The notice must include a description of the land

including its location and the procedure by which sealed bids to purchase the land or offers to

exchange the land may be submitted The notice must be published on two separate dates and the sale

or exchange may not be made until after the 14th day after the date of the second publication

Sell to bidder providing ldquobest benefitrdquo

Texas Local Govrsquot Code 272001(b)

EXCEPTIONS

Narrow stripsweirdly-shaped

parcels of land

Streets or alleys

Independent foundation

Governmental entityeminent domain

Reinvestment zone

Texas Local Govrsquot Code 253014

BROKER AGREEMENTS AND FEES FOR SALE OF REAL

PROPERTY BY HOME-RULE MUNICIPALITIES

Governing body may contract with a broker to sell

must list the property for at least 30 days

Sell to ldquoready willing and able buyerrdquo who

submits ldquohighest cash offerrdquo

Texas Local Govrsquot Code 272001(j)

HIGHER EDUCATION

A political subdivision may donate

exchange convey sell or lease land

improvements or any other interest in real

property to an institution of higher

educationhellip to promote a public purpose

related to higher education The political

subdivision shall determine the terms and

conditions of the transaction so as to

effectuate and maintain the public purpose A

political subdivision may donate exchange

convey sell or lease the real property

interest for less than its fair market

value and without complying with

the notice and bidding requirements

of Subsection (a)

Texas Local Govrsquot Code 272001(l)

ANOTHER POLITICAL SUBDIVISION

hellip A political subdivision may donate or sell for less

than fair market value a designated parcel of land or

an interest in real property to another political

subdivision if

(1) the land or interest will be used by the political

subdivision to which it is donated or sold in carrying

out a purpose that benefits the public interest of the

donating or selling political subdivision

(2) the donation or sale of the land or interest is made

under terms that effect and maintain the public

purpose for which the donation or sale is made and

(3) the title and right to possession of the land or

interest revert to the donating or selling political

subdivision if the acquiring political subdivision ceases

to use the land or interest in carrying out the public

purpose

Texas Local Govrsquot Code 272001(g)

LOW- OR MODERATE-INCOME HOUSING

A political subdivision may acquire or assemble land or real property interest except by condemnation

and sell exchange or otherwise convey the land or interests to an entity for the development of low-

income or moderate-income housing The political subdivision shall determine the terms and conditions of

the transactions so as to effectuate and maintain the public purpose If conveyance of land under this

subsection serves a public purpose the land may be conveyed for less than its fair market value In this

subsection entity means an individual corporation partnership or other legal entity

Texas Local Govrsquot Code 253001

SALE OF PARK LAND MUNICIPAL BUILDING SITE OR ABANDONED ROADWAY

(a) hellipthe governing body of a municipality may sell and convey land or an interest in land that the municipality owns holds or claims as a public square park or site for the city hall or

other municipal building or that is an abandoned part of a street or alleyhellip

(b) Land owned held or claimed as a public square or park may not be sold

unless the issue of the sale is submitted to the qualified voters of the

municipality at an election and is approved by a majority of the votes

received at the electionhellip

ANDhellip Texas Parks and Wildlife Code Ch 26

26001 Findings no ldquofeasible and prudent alternativerdquo

26002 Notice and public hearing

DOCUMENTS

Deeds

Purchase and sale agreements

Surveys

Title Insurance

Closing Documents

DEEDS

Implied covenants Warranties

Tex Property Code Sec 5023

General warranty deed

1 Before title passes to grantee grantor has not conveyed

the estate or any interest in the estate to a person other

than the grantee and

2 At the time of conveyance the estate is free from

encumbrances

The GWD obligates the grantor to indemnify the grantee

against any loss resulting from a title defect or from any encumbrances that arose before the conveyance City of

Beaumont v Moore 202 SW2d 448 453 (Tex 1947)

Special warranty deed

The grantor warrants to defend the title conveyed to the

grantee only to the extent that claims are made by

through or under the grantor The SWD covers only title

defects going back to the grantor not to the grantorrsquos

predecessors in title

BTU By Through or Under

Tex Property Code Sec 5022(b)

Deed without warranty

The DWW passes grantorrsquos title to the grantee with an express

exclusion of warranties A DWW relieves the grantor of any

warranty responsibility for title defects yet provides the grantee a

true deed which transfers title--unlike a quitclaim

So if the grantor has title to the property but wonrsquot warrant title a

deed without warranty is preferable to a quitclaim

Quitclaim (not a) deed

Conveys only the right title and interest which may be none

Does not convey ldquoafter-acquiredrdquo title (title acquired after the date of the

execution and delivery of the quitclaim ldquodeedrdquo)

No recourse by the grantee or any subsequent owner of the property against the

grantor

A quitclaim gives notice to the grantee that title to the property may not be clear

so the grantee is not a bona fide purchaser for value

An adverse possessor cannot rely on a quitclaim as a basis for claiming title to

property under the Texas five-year limitations statute Tex Civ Prac amp Rem

Code sect 16025 Porter v Wilson 389 SW2d 650 (Tex 1965)

SALES CONTRACTS

Offer and Acceptance

Seller and Buyer

Property

Underwriter

Escrow Agent

Consideration

Earnest Money

County for Performance

Deadlines

Who (typically) pays

BUYER

Escrow fees

Document preparation

Recording charges for title transfer

Prorated share of taxes

Loan charges and fees

Title insurance premium

(lenderrsquos policy)

Survey

Inspection fees

Negotiable

SELLER

Escrow fees

Judgments liens against seller

Recording charges to clear

Title Insurance premium

(ownerrsquos policy)

Outstanding assessment

Prorated share of taxes

Delinquent taxes

Survey

1A Comprehensive

Focus is for

insuring title

Boundaries

Easements

Encumbrances

1B Boundary Survey

NOT for insuring title

Perimeters

Deed lines

Occupation lines

Rights of Way

Easements

Title Insurance

Texas Insurance Code Sec 2551003

The Texas Department of Insurance promulgates the Basic Manual

of Rules Rates and Forms for the Writing of Title Insurance in the

State of Texas (the Basic Manual)

Title commitments

Title policies

- Procedural Rules

- Rate Rules

- Forms of commitments policies coverage and

endorsements

- Claim procedures

- Bulletins issued by the Texas Department of

Insurance

Schedules

Schedule A-Commitment

Effective Date

Guaranty File (GF)

Type of Policy

Name of Insured

Nature of Interest

Record title owner

Legal description

Schedules

Schedule B-Exceptions to Coverage

Eight Standard Exceptions

- Restrictive Covenants

- Survey

- Homesteadcommunity property

- Streamwater rights

- Taxesassessments

- Docs creating insuredrsquos interests

- Construction

- Subordinate liens

Schedules

Schedule C-Curative Matters

Four Standard Requirements (Seller)

- Executionnotarizing docs

- Evidence of

- No parties in possession

- Taxes paid

- Improvements completedcontractors paid

- Legal access to property

- (alsomdashDeed of Trust is valid)

Schedule D-Disclosures

1 Who is the buyer (Governing law)

2 What kind of useproperty (Governing law) ndash

Highest bid FMV Appraisal

3 Negotiations

Deed

Purchase and sale agreementinterlocal

agreementother

Schedules and deadlines

Survey

Title commitment (buyer)

(becomes title insurance policy)

4 Closing documents

Execute Deed PSA

HUD settlement

statementdisclosuresaffidavits

In sumhellip

Page 9: Real Estate Issues for City Attorneys...Real Estate Issues for City Attorneys A Resource for Municipal Attorneys Who Don’t Speak Real Estate (featuring “Pinkacre”) Allison Bastian-Rodriguez,

Texas Local Govrsquot Code 272001(b)

EXCEPTIONS

Narrow stripsweirdly-shaped

parcels of land

Streets or alleys

Independent foundation

Governmental entityeminent domain

Reinvestment zone

Texas Local Govrsquot Code 253014

BROKER AGREEMENTS AND FEES FOR SALE OF REAL

PROPERTY BY HOME-RULE MUNICIPALITIES

Governing body may contract with a broker to sell

must list the property for at least 30 days

Sell to ldquoready willing and able buyerrdquo who

submits ldquohighest cash offerrdquo

Texas Local Govrsquot Code 272001(j)

HIGHER EDUCATION

A political subdivision may donate

exchange convey sell or lease land

improvements or any other interest in real

property to an institution of higher

educationhellip to promote a public purpose

related to higher education The political

subdivision shall determine the terms and

conditions of the transaction so as to

effectuate and maintain the public purpose A

political subdivision may donate exchange

convey sell or lease the real property

interest for less than its fair market

value and without complying with

the notice and bidding requirements

of Subsection (a)

Texas Local Govrsquot Code 272001(l)

ANOTHER POLITICAL SUBDIVISION

hellip A political subdivision may donate or sell for less

than fair market value a designated parcel of land or

an interest in real property to another political

subdivision if

(1) the land or interest will be used by the political

subdivision to which it is donated or sold in carrying

out a purpose that benefits the public interest of the

donating or selling political subdivision

(2) the donation or sale of the land or interest is made

under terms that effect and maintain the public

purpose for which the donation or sale is made and

(3) the title and right to possession of the land or

interest revert to the donating or selling political

subdivision if the acquiring political subdivision ceases

to use the land or interest in carrying out the public

purpose

Texas Local Govrsquot Code 272001(g)

LOW- OR MODERATE-INCOME HOUSING

A political subdivision may acquire or assemble land or real property interest except by condemnation

and sell exchange or otherwise convey the land or interests to an entity for the development of low-

income or moderate-income housing The political subdivision shall determine the terms and conditions of

the transactions so as to effectuate and maintain the public purpose If conveyance of land under this

subsection serves a public purpose the land may be conveyed for less than its fair market value In this

subsection entity means an individual corporation partnership or other legal entity

Texas Local Govrsquot Code 253001

SALE OF PARK LAND MUNICIPAL BUILDING SITE OR ABANDONED ROADWAY

(a) hellipthe governing body of a municipality may sell and convey land or an interest in land that the municipality owns holds or claims as a public square park or site for the city hall or

other municipal building or that is an abandoned part of a street or alleyhellip

(b) Land owned held or claimed as a public square or park may not be sold

unless the issue of the sale is submitted to the qualified voters of the

municipality at an election and is approved by a majority of the votes

received at the electionhellip

ANDhellip Texas Parks and Wildlife Code Ch 26

26001 Findings no ldquofeasible and prudent alternativerdquo

26002 Notice and public hearing

DOCUMENTS

Deeds

Purchase and sale agreements

Surveys

Title Insurance

Closing Documents

DEEDS

Implied covenants Warranties

Tex Property Code Sec 5023

General warranty deed

1 Before title passes to grantee grantor has not conveyed

the estate or any interest in the estate to a person other

than the grantee and

2 At the time of conveyance the estate is free from

encumbrances

The GWD obligates the grantor to indemnify the grantee

against any loss resulting from a title defect or from any encumbrances that arose before the conveyance City of

Beaumont v Moore 202 SW2d 448 453 (Tex 1947)

Special warranty deed

The grantor warrants to defend the title conveyed to the

grantee only to the extent that claims are made by

through or under the grantor The SWD covers only title

defects going back to the grantor not to the grantorrsquos

predecessors in title

BTU By Through or Under

Tex Property Code Sec 5022(b)

Deed without warranty

The DWW passes grantorrsquos title to the grantee with an express

exclusion of warranties A DWW relieves the grantor of any

warranty responsibility for title defects yet provides the grantee a

true deed which transfers title--unlike a quitclaim

So if the grantor has title to the property but wonrsquot warrant title a

deed without warranty is preferable to a quitclaim

Quitclaim (not a) deed

Conveys only the right title and interest which may be none

Does not convey ldquoafter-acquiredrdquo title (title acquired after the date of the

execution and delivery of the quitclaim ldquodeedrdquo)

No recourse by the grantee or any subsequent owner of the property against the

grantor

A quitclaim gives notice to the grantee that title to the property may not be clear

so the grantee is not a bona fide purchaser for value

An adverse possessor cannot rely on a quitclaim as a basis for claiming title to

property under the Texas five-year limitations statute Tex Civ Prac amp Rem

Code sect 16025 Porter v Wilson 389 SW2d 650 (Tex 1965)

SALES CONTRACTS

Offer and Acceptance

Seller and Buyer

Property

Underwriter

Escrow Agent

Consideration

Earnest Money

County for Performance

Deadlines

Who (typically) pays

BUYER

Escrow fees

Document preparation

Recording charges for title transfer

Prorated share of taxes

Loan charges and fees

Title insurance premium

(lenderrsquos policy)

Survey

Inspection fees

Negotiable

SELLER

Escrow fees

Judgments liens against seller

Recording charges to clear

Title Insurance premium

(ownerrsquos policy)

Outstanding assessment

Prorated share of taxes

Delinquent taxes

Survey

1A Comprehensive

Focus is for

insuring title

Boundaries

Easements

Encumbrances

1B Boundary Survey

NOT for insuring title

Perimeters

Deed lines

Occupation lines

Rights of Way

Easements

Title Insurance

Texas Insurance Code Sec 2551003

The Texas Department of Insurance promulgates the Basic Manual

of Rules Rates and Forms for the Writing of Title Insurance in the

State of Texas (the Basic Manual)

Title commitments

Title policies

- Procedural Rules

- Rate Rules

- Forms of commitments policies coverage and

endorsements

- Claim procedures

- Bulletins issued by the Texas Department of

Insurance

Schedules

Schedule A-Commitment

Effective Date

Guaranty File (GF)

Type of Policy

Name of Insured

Nature of Interest

Record title owner

Legal description

Schedules

Schedule B-Exceptions to Coverage

Eight Standard Exceptions

- Restrictive Covenants

- Survey

- Homesteadcommunity property

- Streamwater rights

- Taxesassessments

- Docs creating insuredrsquos interests

- Construction

- Subordinate liens

Schedules

Schedule C-Curative Matters

Four Standard Requirements (Seller)

- Executionnotarizing docs

- Evidence of

- No parties in possession

- Taxes paid

- Improvements completedcontractors paid

- Legal access to property

- (alsomdashDeed of Trust is valid)

Schedule D-Disclosures

1 Who is the buyer (Governing law)

2 What kind of useproperty (Governing law) ndash

Highest bid FMV Appraisal

3 Negotiations

Deed

Purchase and sale agreementinterlocal

agreementother

Schedules and deadlines

Survey

Title commitment (buyer)

(becomes title insurance policy)

4 Closing documents

Execute Deed PSA

HUD settlement

statementdisclosuresaffidavits

In sumhellip

Page 10: Real Estate Issues for City Attorneys...Real Estate Issues for City Attorneys A Resource for Municipal Attorneys Who Don’t Speak Real Estate (featuring “Pinkacre”) Allison Bastian-Rodriguez,

Texas Local Govrsquot Code 253014

BROKER AGREEMENTS AND FEES FOR SALE OF REAL

PROPERTY BY HOME-RULE MUNICIPALITIES

Governing body may contract with a broker to sell

must list the property for at least 30 days

Sell to ldquoready willing and able buyerrdquo who

submits ldquohighest cash offerrdquo

Texas Local Govrsquot Code 272001(j)

HIGHER EDUCATION

A political subdivision may donate

exchange convey sell or lease land

improvements or any other interest in real

property to an institution of higher

educationhellip to promote a public purpose

related to higher education The political

subdivision shall determine the terms and

conditions of the transaction so as to

effectuate and maintain the public purpose A

political subdivision may donate exchange

convey sell or lease the real property

interest for less than its fair market

value and without complying with

the notice and bidding requirements

of Subsection (a)

Texas Local Govrsquot Code 272001(l)

ANOTHER POLITICAL SUBDIVISION

hellip A political subdivision may donate or sell for less

than fair market value a designated parcel of land or

an interest in real property to another political

subdivision if

(1) the land or interest will be used by the political

subdivision to which it is donated or sold in carrying

out a purpose that benefits the public interest of the

donating or selling political subdivision

(2) the donation or sale of the land or interest is made

under terms that effect and maintain the public

purpose for which the donation or sale is made and

(3) the title and right to possession of the land or

interest revert to the donating or selling political

subdivision if the acquiring political subdivision ceases

to use the land or interest in carrying out the public

purpose

Texas Local Govrsquot Code 272001(g)

LOW- OR MODERATE-INCOME HOUSING

A political subdivision may acquire or assemble land or real property interest except by condemnation

and sell exchange or otherwise convey the land or interests to an entity for the development of low-

income or moderate-income housing The political subdivision shall determine the terms and conditions of

the transactions so as to effectuate and maintain the public purpose If conveyance of land under this

subsection serves a public purpose the land may be conveyed for less than its fair market value In this

subsection entity means an individual corporation partnership or other legal entity

Texas Local Govrsquot Code 253001

SALE OF PARK LAND MUNICIPAL BUILDING SITE OR ABANDONED ROADWAY

(a) hellipthe governing body of a municipality may sell and convey land or an interest in land that the municipality owns holds or claims as a public square park or site for the city hall or

other municipal building or that is an abandoned part of a street or alleyhellip

(b) Land owned held or claimed as a public square or park may not be sold

unless the issue of the sale is submitted to the qualified voters of the

municipality at an election and is approved by a majority of the votes

received at the electionhellip

ANDhellip Texas Parks and Wildlife Code Ch 26

26001 Findings no ldquofeasible and prudent alternativerdquo

26002 Notice and public hearing

DOCUMENTS

Deeds

Purchase and sale agreements

Surveys

Title Insurance

Closing Documents

DEEDS

Implied covenants Warranties

Tex Property Code Sec 5023

General warranty deed

1 Before title passes to grantee grantor has not conveyed

the estate or any interest in the estate to a person other

than the grantee and

2 At the time of conveyance the estate is free from

encumbrances

The GWD obligates the grantor to indemnify the grantee

against any loss resulting from a title defect or from any encumbrances that arose before the conveyance City of

Beaumont v Moore 202 SW2d 448 453 (Tex 1947)

Special warranty deed

The grantor warrants to defend the title conveyed to the

grantee only to the extent that claims are made by

through or under the grantor The SWD covers only title

defects going back to the grantor not to the grantorrsquos

predecessors in title

BTU By Through or Under

Tex Property Code Sec 5022(b)

Deed without warranty

The DWW passes grantorrsquos title to the grantee with an express

exclusion of warranties A DWW relieves the grantor of any

warranty responsibility for title defects yet provides the grantee a

true deed which transfers title--unlike a quitclaim

So if the grantor has title to the property but wonrsquot warrant title a

deed without warranty is preferable to a quitclaim

Quitclaim (not a) deed

Conveys only the right title and interest which may be none

Does not convey ldquoafter-acquiredrdquo title (title acquired after the date of the

execution and delivery of the quitclaim ldquodeedrdquo)

No recourse by the grantee or any subsequent owner of the property against the

grantor

A quitclaim gives notice to the grantee that title to the property may not be clear

so the grantee is not a bona fide purchaser for value

An adverse possessor cannot rely on a quitclaim as a basis for claiming title to

property under the Texas five-year limitations statute Tex Civ Prac amp Rem

Code sect 16025 Porter v Wilson 389 SW2d 650 (Tex 1965)

SALES CONTRACTS

Offer and Acceptance

Seller and Buyer

Property

Underwriter

Escrow Agent

Consideration

Earnest Money

County for Performance

Deadlines

Who (typically) pays

BUYER

Escrow fees

Document preparation

Recording charges for title transfer

Prorated share of taxes

Loan charges and fees

Title insurance premium

(lenderrsquos policy)

Survey

Inspection fees

Negotiable

SELLER

Escrow fees

Judgments liens against seller

Recording charges to clear

Title Insurance premium

(ownerrsquos policy)

Outstanding assessment

Prorated share of taxes

Delinquent taxes

Survey

1A Comprehensive

Focus is for

insuring title

Boundaries

Easements

Encumbrances

1B Boundary Survey

NOT for insuring title

Perimeters

Deed lines

Occupation lines

Rights of Way

Easements

Title Insurance

Texas Insurance Code Sec 2551003

The Texas Department of Insurance promulgates the Basic Manual

of Rules Rates and Forms for the Writing of Title Insurance in the

State of Texas (the Basic Manual)

Title commitments

Title policies

- Procedural Rules

- Rate Rules

- Forms of commitments policies coverage and

endorsements

- Claim procedures

- Bulletins issued by the Texas Department of

Insurance

Schedules

Schedule A-Commitment

Effective Date

Guaranty File (GF)

Type of Policy

Name of Insured

Nature of Interest

Record title owner

Legal description

Schedules

Schedule B-Exceptions to Coverage

Eight Standard Exceptions

- Restrictive Covenants

- Survey

- Homesteadcommunity property

- Streamwater rights

- Taxesassessments

- Docs creating insuredrsquos interests

- Construction

- Subordinate liens

Schedules

Schedule C-Curative Matters

Four Standard Requirements (Seller)

- Executionnotarizing docs

- Evidence of

- No parties in possession

- Taxes paid

- Improvements completedcontractors paid

- Legal access to property

- (alsomdashDeed of Trust is valid)

Schedule D-Disclosures

1 Who is the buyer (Governing law)

2 What kind of useproperty (Governing law) ndash

Highest bid FMV Appraisal

3 Negotiations

Deed

Purchase and sale agreementinterlocal

agreementother

Schedules and deadlines

Survey

Title commitment (buyer)

(becomes title insurance policy)

4 Closing documents

Execute Deed PSA

HUD settlement

statementdisclosuresaffidavits

In sumhellip

Page 11: Real Estate Issues for City Attorneys...Real Estate Issues for City Attorneys A Resource for Municipal Attorneys Who Don’t Speak Real Estate (featuring “Pinkacre”) Allison Bastian-Rodriguez,

Texas Local Govrsquot Code 272001(j)

HIGHER EDUCATION

A political subdivision may donate

exchange convey sell or lease land

improvements or any other interest in real

property to an institution of higher

educationhellip to promote a public purpose

related to higher education The political

subdivision shall determine the terms and

conditions of the transaction so as to

effectuate and maintain the public purpose A

political subdivision may donate exchange

convey sell or lease the real property

interest for less than its fair market

value and without complying with

the notice and bidding requirements

of Subsection (a)

Texas Local Govrsquot Code 272001(l)

ANOTHER POLITICAL SUBDIVISION

hellip A political subdivision may donate or sell for less

than fair market value a designated parcel of land or

an interest in real property to another political

subdivision if

(1) the land or interest will be used by the political

subdivision to which it is donated or sold in carrying

out a purpose that benefits the public interest of the

donating or selling political subdivision

(2) the donation or sale of the land or interest is made

under terms that effect and maintain the public

purpose for which the donation or sale is made and

(3) the title and right to possession of the land or

interest revert to the donating or selling political

subdivision if the acquiring political subdivision ceases

to use the land or interest in carrying out the public

purpose

Texas Local Govrsquot Code 272001(g)

LOW- OR MODERATE-INCOME HOUSING

A political subdivision may acquire or assemble land or real property interest except by condemnation

and sell exchange or otherwise convey the land or interests to an entity for the development of low-

income or moderate-income housing The political subdivision shall determine the terms and conditions of

the transactions so as to effectuate and maintain the public purpose If conveyance of land under this

subsection serves a public purpose the land may be conveyed for less than its fair market value In this

subsection entity means an individual corporation partnership or other legal entity

Texas Local Govrsquot Code 253001

SALE OF PARK LAND MUNICIPAL BUILDING SITE OR ABANDONED ROADWAY

(a) hellipthe governing body of a municipality may sell and convey land or an interest in land that the municipality owns holds or claims as a public square park or site for the city hall or

other municipal building or that is an abandoned part of a street or alleyhellip

(b) Land owned held or claimed as a public square or park may not be sold

unless the issue of the sale is submitted to the qualified voters of the

municipality at an election and is approved by a majority of the votes

received at the electionhellip

ANDhellip Texas Parks and Wildlife Code Ch 26

26001 Findings no ldquofeasible and prudent alternativerdquo

26002 Notice and public hearing

DOCUMENTS

Deeds

Purchase and sale agreements

Surveys

Title Insurance

Closing Documents

DEEDS

Implied covenants Warranties

Tex Property Code Sec 5023

General warranty deed

1 Before title passes to grantee grantor has not conveyed

the estate or any interest in the estate to a person other

than the grantee and

2 At the time of conveyance the estate is free from

encumbrances

The GWD obligates the grantor to indemnify the grantee

against any loss resulting from a title defect or from any encumbrances that arose before the conveyance City of

Beaumont v Moore 202 SW2d 448 453 (Tex 1947)

Special warranty deed

The grantor warrants to defend the title conveyed to the

grantee only to the extent that claims are made by

through or under the grantor The SWD covers only title

defects going back to the grantor not to the grantorrsquos

predecessors in title

BTU By Through or Under

Tex Property Code Sec 5022(b)

Deed without warranty

The DWW passes grantorrsquos title to the grantee with an express

exclusion of warranties A DWW relieves the grantor of any

warranty responsibility for title defects yet provides the grantee a

true deed which transfers title--unlike a quitclaim

So if the grantor has title to the property but wonrsquot warrant title a

deed without warranty is preferable to a quitclaim

Quitclaim (not a) deed

Conveys only the right title and interest which may be none

Does not convey ldquoafter-acquiredrdquo title (title acquired after the date of the

execution and delivery of the quitclaim ldquodeedrdquo)

No recourse by the grantee or any subsequent owner of the property against the

grantor

A quitclaim gives notice to the grantee that title to the property may not be clear

so the grantee is not a bona fide purchaser for value

An adverse possessor cannot rely on a quitclaim as a basis for claiming title to

property under the Texas five-year limitations statute Tex Civ Prac amp Rem

Code sect 16025 Porter v Wilson 389 SW2d 650 (Tex 1965)

SALES CONTRACTS

Offer and Acceptance

Seller and Buyer

Property

Underwriter

Escrow Agent

Consideration

Earnest Money

County for Performance

Deadlines

Who (typically) pays

BUYER

Escrow fees

Document preparation

Recording charges for title transfer

Prorated share of taxes

Loan charges and fees

Title insurance premium

(lenderrsquos policy)

Survey

Inspection fees

Negotiable

SELLER

Escrow fees

Judgments liens against seller

Recording charges to clear

Title Insurance premium

(ownerrsquos policy)

Outstanding assessment

Prorated share of taxes

Delinquent taxes

Survey

1A Comprehensive

Focus is for

insuring title

Boundaries

Easements

Encumbrances

1B Boundary Survey

NOT for insuring title

Perimeters

Deed lines

Occupation lines

Rights of Way

Easements

Title Insurance

Texas Insurance Code Sec 2551003

The Texas Department of Insurance promulgates the Basic Manual

of Rules Rates and Forms for the Writing of Title Insurance in the

State of Texas (the Basic Manual)

Title commitments

Title policies

- Procedural Rules

- Rate Rules

- Forms of commitments policies coverage and

endorsements

- Claim procedures

- Bulletins issued by the Texas Department of

Insurance

Schedules

Schedule A-Commitment

Effective Date

Guaranty File (GF)

Type of Policy

Name of Insured

Nature of Interest

Record title owner

Legal description

Schedules

Schedule B-Exceptions to Coverage

Eight Standard Exceptions

- Restrictive Covenants

- Survey

- Homesteadcommunity property

- Streamwater rights

- Taxesassessments

- Docs creating insuredrsquos interests

- Construction

- Subordinate liens

Schedules

Schedule C-Curative Matters

Four Standard Requirements (Seller)

- Executionnotarizing docs

- Evidence of

- No parties in possession

- Taxes paid

- Improvements completedcontractors paid

- Legal access to property

- (alsomdashDeed of Trust is valid)

Schedule D-Disclosures

1 Who is the buyer (Governing law)

2 What kind of useproperty (Governing law) ndash

Highest bid FMV Appraisal

3 Negotiations

Deed

Purchase and sale agreementinterlocal

agreementother

Schedules and deadlines

Survey

Title commitment (buyer)

(becomes title insurance policy)

4 Closing documents

Execute Deed PSA

HUD settlement

statementdisclosuresaffidavits

In sumhellip

Page 12: Real Estate Issues for City Attorneys...Real Estate Issues for City Attorneys A Resource for Municipal Attorneys Who Don’t Speak Real Estate (featuring “Pinkacre”) Allison Bastian-Rodriguez,

Texas Local Govrsquot Code 272001(l)

ANOTHER POLITICAL SUBDIVISION

hellip A political subdivision may donate or sell for less

than fair market value a designated parcel of land or

an interest in real property to another political

subdivision if

(1) the land or interest will be used by the political

subdivision to which it is donated or sold in carrying

out a purpose that benefits the public interest of the

donating or selling political subdivision

(2) the donation or sale of the land or interest is made

under terms that effect and maintain the public

purpose for which the donation or sale is made and

(3) the title and right to possession of the land or

interest revert to the donating or selling political

subdivision if the acquiring political subdivision ceases

to use the land or interest in carrying out the public

purpose

Texas Local Govrsquot Code 272001(g)

LOW- OR MODERATE-INCOME HOUSING

A political subdivision may acquire or assemble land or real property interest except by condemnation

and sell exchange or otherwise convey the land or interests to an entity for the development of low-

income or moderate-income housing The political subdivision shall determine the terms and conditions of

the transactions so as to effectuate and maintain the public purpose If conveyance of land under this

subsection serves a public purpose the land may be conveyed for less than its fair market value In this

subsection entity means an individual corporation partnership or other legal entity

Texas Local Govrsquot Code 253001

SALE OF PARK LAND MUNICIPAL BUILDING SITE OR ABANDONED ROADWAY

(a) hellipthe governing body of a municipality may sell and convey land or an interest in land that the municipality owns holds or claims as a public square park or site for the city hall or

other municipal building or that is an abandoned part of a street or alleyhellip

(b) Land owned held or claimed as a public square or park may not be sold

unless the issue of the sale is submitted to the qualified voters of the

municipality at an election and is approved by a majority of the votes

received at the electionhellip

ANDhellip Texas Parks and Wildlife Code Ch 26

26001 Findings no ldquofeasible and prudent alternativerdquo

26002 Notice and public hearing

DOCUMENTS

Deeds

Purchase and sale agreements

Surveys

Title Insurance

Closing Documents

DEEDS

Implied covenants Warranties

Tex Property Code Sec 5023

General warranty deed

1 Before title passes to grantee grantor has not conveyed

the estate or any interest in the estate to a person other

than the grantee and

2 At the time of conveyance the estate is free from

encumbrances

The GWD obligates the grantor to indemnify the grantee

against any loss resulting from a title defect or from any encumbrances that arose before the conveyance City of

Beaumont v Moore 202 SW2d 448 453 (Tex 1947)

Special warranty deed

The grantor warrants to defend the title conveyed to the

grantee only to the extent that claims are made by

through or under the grantor The SWD covers only title

defects going back to the grantor not to the grantorrsquos

predecessors in title

BTU By Through or Under

Tex Property Code Sec 5022(b)

Deed without warranty

The DWW passes grantorrsquos title to the grantee with an express

exclusion of warranties A DWW relieves the grantor of any

warranty responsibility for title defects yet provides the grantee a

true deed which transfers title--unlike a quitclaim

So if the grantor has title to the property but wonrsquot warrant title a

deed without warranty is preferable to a quitclaim

Quitclaim (not a) deed

Conveys only the right title and interest which may be none

Does not convey ldquoafter-acquiredrdquo title (title acquired after the date of the

execution and delivery of the quitclaim ldquodeedrdquo)

No recourse by the grantee or any subsequent owner of the property against the

grantor

A quitclaim gives notice to the grantee that title to the property may not be clear

so the grantee is not a bona fide purchaser for value

An adverse possessor cannot rely on a quitclaim as a basis for claiming title to

property under the Texas five-year limitations statute Tex Civ Prac amp Rem

Code sect 16025 Porter v Wilson 389 SW2d 650 (Tex 1965)

SALES CONTRACTS

Offer and Acceptance

Seller and Buyer

Property

Underwriter

Escrow Agent

Consideration

Earnest Money

County for Performance

Deadlines

Who (typically) pays

BUYER

Escrow fees

Document preparation

Recording charges for title transfer

Prorated share of taxes

Loan charges and fees

Title insurance premium

(lenderrsquos policy)

Survey

Inspection fees

Negotiable

SELLER

Escrow fees

Judgments liens against seller

Recording charges to clear

Title Insurance premium

(ownerrsquos policy)

Outstanding assessment

Prorated share of taxes

Delinquent taxes

Survey

1A Comprehensive

Focus is for

insuring title

Boundaries

Easements

Encumbrances

1B Boundary Survey

NOT for insuring title

Perimeters

Deed lines

Occupation lines

Rights of Way

Easements

Title Insurance

Texas Insurance Code Sec 2551003

The Texas Department of Insurance promulgates the Basic Manual

of Rules Rates and Forms for the Writing of Title Insurance in the

State of Texas (the Basic Manual)

Title commitments

Title policies

- Procedural Rules

- Rate Rules

- Forms of commitments policies coverage and

endorsements

- Claim procedures

- Bulletins issued by the Texas Department of

Insurance

Schedules

Schedule A-Commitment

Effective Date

Guaranty File (GF)

Type of Policy

Name of Insured

Nature of Interest

Record title owner

Legal description

Schedules

Schedule B-Exceptions to Coverage

Eight Standard Exceptions

- Restrictive Covenants

- Survey

- Homesteadcommunity property

- Streamwater rights

- Taxesassessments

- Docs creating insuredrsquos interests

- Construction

- Subordinate liens

Schedules

Schedule C-Curative Matters

Four Standard Requirements (Seller)

- Executionnotarizing docs

- Evidence of

- No parties in possession

- Taxes paid

- Improvements completedcontractors paid

- Legal access to property

- (alsomdashDeed of Trust is valid)

Schedule D-Disclosures

1 Who is the buyer (Governing law)

2 What kind of useproperty (Governing law) ndash

Highest bid FMV Appraisal

3 Negotiations

Deed

Purchase and sale agreementinterlocal

agreementother

Schedules and deadlines

Survey

Title commitment (buyer)

(becomes title insurance policy)

4 Closing documents

Execute Deed PSA

HUD settlement

statementdisclosuresaffidavits

In sumhellip

Page 13: Real Estate Issues for City Attorneys...Real Estate Issues for City Attorneys A Resource for Municipal Attorneys Who Don’t Speak Real Estate (featuring “Pinkacre”) Allison Bastian-Rodriguez,

Texas Local Govrsquot Code 272001(g)

LOW- OR MODERATE-INCOME HOUSING

A political subdivision may acquire or assemble land or real property interest except by condemnation

and sell exchange or otherwise convey the land or interests to an entity for the development of low-

income or moderate-income housing The political subdivision shall determine the terms and conditions of

the transactions so as to effectuate and maintain the public purpose If conveyance of land under this

subsection serves a public purpose the land may be conveyed for less than its fair market value In this

subsection entity means an individual corporation partnership or other legal entity

Texas Local Govrsquot Code 253001

SALE OF PARK LAND MUNICIPAL BUILDING SITE OR ABANDONED ROADWAY

(a) hellipthe governing body of a municipality may sell and convey land or an interest in land that the municipality owns holds or claims as a public square park or site for the city hall or

other municipal building or that is an abandoned part of a street or alleyhellip

(b) Land owned held or claimed as a public square or park may not be sold

unless the issue of the sale is submitted to the qualified voters of the

municipality at an election and is approved by a majority of the votes

received at the electionhellip

ANDhellip Texas Parks and Wildlife Code Ch 26

26001 Findings no ldquofeasible and prudent alternativerdquo

26002 Notice and public hearing

DOCUMENTS

Deeds

Purchase and sale agreements

Surveys

Title Insurance

Closing Documents

DEEDS

Implied covenants Warranties

Tex Property Code Sec 5023

General warranty deed

1 Before title passes to grantee grantor has not conveyed

the estate or any interest in the estate to a person other

than the grantee and

2 At the time of conveyance the estate is free from

encumbrances

The GWD obligates the grantor to indemnify the grantee

against any loss resulting from a title defect or from any encumbrances that arose before the conveyance City of

Beaumont v Moore 202 SW2d 448 453 (Tex 1947)

Special warranty deed

The grantor warrants to defend the title conveyed to the

grantee only to the extent that claims are made by

through or under the grantor The SWD covers only title

defects going back to the grantor not to the grantorrsquos

predecessors in title

BTU By Through or Under

Tex Property Code Sec 5022(b)

Deed without warranty

The DWW passes grantorrsquos title to the grantee with an express

exclusion of warranties A DWW relieves the grantor of any

warranty responsibility for title defects yet provides the grantee a

true deed which transfers title--unlike a quitclaim

So if the grantor has title to the property but wonrsquot warrant title a

deed without warranty is preferable to a quitclaim

Quitclaim (not a) deed

Conveys only the right title and interest which may be none

Does not convey ldquoafter-acquiredrdquo title (title acquired after the date of the

execution and delivery of the quitclaim ldquodeedrdquo)

No recourse by the grantee or any subsequent owner of the property against the

grantor

A quitclaim gives notice to the grantee that title to the property may not be clear

so the grantee is not a bona fide purchaser for value

An adverse possessor cannot rely on a quitclaim as a basis for claiming title to

property under the Texas five-year limitations statute Tex Civ Prac amp Rem

Code sect 16025 Porter v Wilson 389 SW2d 650 (Tex 1965)

SALES CONTRACTS

Offer and Acceptance

Seller and Buyer

Property

Underwriter

Escrow Agent

Consideration

Earnest Money

County for Performance

Deadlines

Who (typically) pays

BUYER

Escrow fees

Document preparation

Recording charges for title transfer

Prorated share of taxes

Loan charges and fees

Title insurance premium

(lenderrsquos policy)

Survey

Inspection fees

Negotiable

SELLER

Escrow fees

Judgments liens against seller

Recording charges to clear

Title Insurance premium

(ownerrsquos policy)

Outstanding assessment

Prorated share of taxes

Delinquent taxes

Survey

1A Comprehensive

Focus is for

insuring title

Boundaries

Easements

Encumbrances

1B Boundary Survey

NOT for insuring title

Perimeters

Deed lines

Occupation lines

Rights of Way

Easements

Title Insurance

Texas Insurance Code Sec 2551003

The Texas Department of Insurance promulgates the Basic Manual

of Rules Rates and Forms for the Writing of Title Insurance in the

State of Texas (the Basic Manual)

Title commitments

Title policies

- Procedural Rules

- Rate Rules

- Forms of commitments policies coverage and

endorsements

- Claim procedures

- Bulletins issued by the Texas Department of

Insurance

Schedules

Schedule A-Commitment

Effective Date

Guaranty File (GF)

Type of Policy

Name of Insured

Nature of Interest

Record title owner

Legal description

Schedules

Schedule B-Exceptions to Coverage

Eight Standard Exceptions

- Restrictive Covenants

- Survey

- Homesteadcommunity property

- Streamwater rights

- Taxesassessments

- Docs creating insuredrsquos interests

- Construction

- Subordinate liens

Schedules

Schedule C-Curative Matters

Four Standard Requirements (Seller)

- Executionnotarizing docs

- Evidence of

- No parties in possession

- Taxes paid

- Improvements completedcontractors paid

- Legal access to property

- (alsomdashDeed of Trust is valid)

Schedule D-Disclosures

1 Who is the buyer (Governing law)

2 What kind of useproperty (Governing law) ndash

Highest bid FMV Appraisal

3 Negotiations

Deed

Purchase and sale agreementinterlocal

agreementother

Schedules and deadlines

Survey

Title commitment (buyer)

(becomes title insurance policy)

4 Closing documents

Execute Deed PSA

HUD settlement

statementdisclosuresaffidavits

In sumhellip

Page 14: Real Estate Issues for City Attorneys...Real Estate Issues for City Attorneys A Resource for Municipal Attorneys Who Don’t Speak Real Estate (featuring “Pinkacre”) Allison Bastian-Rodriguez,

Texas Local Govrsquot Code 253001

SALE OF PARK LAND MUNICIPAL BUILDING SITE OR ABANDONED ROADWAY

(a) hellipthe governing body of a municipality may sell and convey land or an interest in land that the municipality owns holds or claims as a public square park or site for the city hall or

other municipal building or that is an abandoned part of a street or alleyhellip

(b) Land owned held or claimed as a public square or park may not be sold

unless the issue of the sale is submitted to the qualified voters of the

municipality at an election and is approved by a majority of the votes

received at the electionhellip

ANDhellip Texas Parks and Wildlife Code Ch 26

26001 Findings no ldquofeasible and prudent alternativerdquo

26002 Notice and public hearing

DOCUMENTS

Deeds

Purchase and sale agreements

Surveys

Title Insurance

Closing Documents

DEEDS

Implied covenants Warranties

Tex Property Code Sec 5023

General warranty deed

1 Before title passes to grantee grantor has not conveyed

the estate or any interest in the estate to a person other

than the grantee and

2 At the time of conveyance the estate is free from

encumbrances

The GWD obligates the grantor to indemnify the grantee

against any loss resulting from a title defect or from any encumbrances that arose before the conveyance City of

Beaumont v Moore 202 SW2d 448 453 (Tex 1947)

Special warranty deed

The grantor warrants to defend the title conveyed to the

grantee only to the extent that claims are made by

through or under the grantor The SWD covers only title

defects going back to the grantor not to the grantorrsquos

predecessors in title

BTU By Through or Under

Tex Property Code Sec 5022(b)

Deed without warranty

The DWW passes grantorrsquos title to the grantee with an express

exclusion of warranties A DWW relieves the grantor of any

warranty responsibility for title defects yet provides the grantee a

true deed which transfers title--unlike a quitclaim

So if the grantor has title to the property but wonrsquot warrant title a

deed without warranty is preferable to a quitclaim

Quitclaim (not a) deed

Conveys only the right title and interest which may be none

Does not convey ldquoafter-acquiredrdquo title (title acquired after the date of the

execution and delivery of the quitclaim ldquodeedrdquo)

No recourse by the grantee or any subsequent owner of the property against the

grantor

A quitclaim gives notice to the grantee that title to the property may not be clear

so the grantee is not a bona fide purchaser for value

An adverse possessor cannot rely on a quitclaim as a basis for claiming title to

property under the Texas five-year limitations statute Tex Civ Prac amp Rem

Code sect 16025 Porter v Wilson 389 SW2d 650 (Tex 1965)

SALES CONTRACTS

Offer and Acceptance

Seller and Buyer

Property

Underwriter

Escrow Agent

Consideration

Earnest Money

County for Performance

Deadlines

Who (typically) pays

BUYER

Escrow fees

Document preparation

Recording charges for title transfer

Prorated share of taxes

Loan charges and fees

Title insurance premium

(lenderrsquos policy)

Survey

Inspection fees

Negotiable

SELLER

Escrow fees

Judgments liens against seller

Recording charges to clear

Title Insurance premium

(ownerrsquos policy)

Outstanding assessment

Prorated share of taxes

Delinquent taxes

Survey

1A Comprehensive

Focus is for

insuring title

Boundaries

Easements

Encumbrances

1B Boundary Survey

NOT for insuring title

Perimeters

Deed lines

Occupation lines

Rights of Way

Easements

Title Insurance

Texas Insurance Code Sec 2551003

The Texas Department of Insurance promulgates the Basic Manual

of Rules Rates and Forms for the Writing of Title Insurance in the

State of Texas (the Basic Manual)

Title commitments

Title policies

- Procedural Rules

- Rate Rules

- Forms of commitments policies coverage and

endorsements

- Claim procedures

- Bulletins issued by the Texas Department of

Insurance

Schedules

Schedule A-Commitment

Effective Date

Guaranty File (GF)

Type of Policy

Name of Insured

Nature of Interest

Record title owner

Legal description

Schedules

Schedule B-Exceptions to Coverage

Eight Standard Exceptions

- Restrictive Covenants

- Survey

- Homesteadcommunity property

- Streamwater rights

- Taxesassessments

- Docs creating insuredrsquos interests

- Construction

- Subordinate liens

Schedules

Schedule C-Curative Matters

Four Standard Requirements (Seller)

- Executionnotarizing docs

- Evidence of

- No parties in possession

- Taxes paid

- Improvements completedcontractors paid

- Legal access to property

- (alsomdashDeed of Trust is valid)

Schedule D-Disclosures

1 Who is the buyer (Governing law)

2 What kind of useproperty (Governing law) ndash

Highest bid FMV Appraisal

3 Negotiations

Deed

Purchase and sale agreementinterlocal

agreementother

Schedules and deadlines

Survey

Title commitment (buyer)

(becomes title insurance policy)

4 Closing documents

Execute Deed PSA

HUD settlement

statementdisclosuresaffidavits

In sumhellip

Page 15: Real Estate Issues for City Attorneys...Real Estate Issues for City Attorneys A Resource for Municipal Attorneys Who Don’t Speak Real Estate (featuring “Pinkacre”) Allison Bastian-Rodriguez,

DOCUMENTS

Deeds

Purchase and sale agreements

Surveys

Title Insurance

Closing Documents

DEEDS

Implied covenants Warranties

Tex Property Code Sec 5023

General warranty deed

1 Before title passes to grantee grantor has not conveyed

the estate or any interest in the estate to a person other

than the grantee and

2 At the time of conveyance the estate is free from

encumbrances

The GWD obligates the grantor to indemnify the grantee

against any loss resulting from a title defect or from any encumbrances that arose before the conveyance City of

Beaumont v Moore 202 SW2d 448 453 (Tex 1947)

Special warranty deed

The grantor warrants to defend the title conveyed to the

grantee only to the extent that claims are made by

through or under the grantor The SWD covers only title

defects going back to the grantor not to the grantorrsquos

predecessors in title

BTU By Through or Under

Tex Property Code Sec 5022(b)

Deed without warranty

The DWW passes grantorrsquos title to the grantee with an express

exclusion of warranties A DWW relieves the grantor of any

warranty responsibility for title defects yet provides the grantee a

true deed which transfers title--unlike a quitclaim

So if the grantor has title to the property but wonrsquot warrant title a

deed without warranty is preferable to a quitclaim

Quitclaim (not a) deed

Conveys only the right title and interest which may be none

Does not convey ldquoafter-acquiredrdquo title (title acquired after the date of the

execution and delivery of the quitclaim ldquodeedrdquo)

No recourse by the grantee or any subsequent owner of the property against the

grantor

A quitclaim gives notice to the grantee that title to the property may not be clear

so the grantee is not a bona fide purchaser for value

An adverse possessor cannot rely on a quitclaim as a basis for claiming title to

property under the Texas five-year limitations statute Tex Civ Prac amp Rem

Code sect 16025 Porter v Wilson 389 SW2d 650 (Tex 1965)

SALES CONTRACTS

Offer and Acceptance

Seller and Buyer

Property

Underwriter

Escrow Agent

Consideration

Earnest Money

County for Performance

Deadlines

Who (typically) pays

BUYER

Escrow fees

Document preparation

Recording charges for title transfer

Prorated share of taxes

Loan charges and fees

Title insurance premium

(lenderrsquos policy)

Survey

Inspection fees

Negotiable

SELLER

Escrow fees

Judgments liens against seller

Recording charges to clear

Title Insurance premium

(ownerrsquos policy)

Outstanding assessment

Prorated share of taxes

Delinquent taxes

Survey

1A Comprehensive

Focus is for

insuring title

Boundaries

Easements

Encumbrances

1B Boundary Survey

NOT for insuring title

Perimeters

Deed lines

Occupation lines

Rights of Way

Easements

Title Insurance

Texas Insurance Code Sec 2551003

The Texas Department of Insurance promulgates the Basic Manual

of Rules Rates and Forms for the Writing of Title Insurance in the

State of Texas (the Basic Manual)

Title commitments

Title policies

- Procedural Rules

- Rate Rules

- Forms of commitments policies coverage and

endorsements

- Claim procedures

- Bulletins issued by the Texas Department of

Insurance

Schedules

Schedule A-Commitment

Effective Date

Guaranty File (GF)

Type of Policy

Name of Insured

Nature of Interest

Record title owner

Legal description

Schedules

Schedule B-Exceptions to Coverage

Eight Standard Exceptions

- Restrictive Covenants

- Survey

- Homesteadcommunity property

- Streamwater rights

- Taxesassessments

- Docs creating insuredrsquos interests

- Construction

- Subordinate liens

Schedules

Schedule C-Curative Matters

Four Standard Requirements (Seller)

- Executionnotarizing docs

- Evidence of

- No parties in possession

- Taxes paid

- Improvements completedcontractors paid

- Legal access to property

- (alsomdashDeed of Trust is valid)

Schedule D-Disclosures

1 Who is the buyer (Governing law)

2 What kind of useproperty (Governing law) ndash

Highest bid FMV Appraisal

3 Negotiations

Deed

Purchase and sale agreementinterlocal

agreementother

Schedules and deadlines

Survey

Title commitment (buyer)

(becomes title insurance policy)

4 Closing documents

Execute Deed PSA

HUD settlement

statementdisclosuresaffidavits

In sumhellip

Page 16: Real Estate Issues for City Attorneys...Real Estate Issues for City Attorneys A Resource for Municipal Attorneys Who Don’t Speak Real Estate (featuring “Pinkacre”) Allison Bastian-Rodriguez,

DEEDS

Implied covenants Warranties

Tex Property Code Sec 5023

General warranty deed

1 Before title passes to grantee grantor has not conveyed

the estate or any interest in the estate to a person other

than the grantee and

2 At the time of conveyance the estate is free from

encumbrances

The GWD obligates the grantor to indemnify the grantee

against any loss resulting from a title defect or from any encumbrances that arose before the conveyance City of

Beaumont v Moore 202 SW2d 448 453 (Tex 1947)

Special warranty deed

The grantor warrants to defend the title conveyed to the

grantee only to the extent that claims are made by

through or under the grantor The SWD covers only title

defects going back to the grantor not to the grantorrsquos

predecessors in title

BTU By Through or Under

Tex Property Code Sec 5022(b)

Deed without warranty

The DWW passes grantorrsquos title to the grantee with an express

exclusion of warranties A DWW relieves the grantor of any

warranty responsibility for title defects yet provides the grantee a

true deed which transfers title--unlike a quitclaim

So if the grantor has title to the property but wonrsquot warrant title a

deed without warranty is preferable to a quitclaim

Quitclaim (not a) deed

Conveys only the right title and interest which may be none

Does not convey ldquoafter-acquiredrdquo title (title acquired after the date of the

execution and delivery of the quitclaim ldquodeedrdquo)

No recourse by the grantee or any subsequent owner of the property against the

grantor

A quitclaim gives notice to the grantee that title to the property may not be clear

so the grantee is not a bona fide purchaser for value

An adverse possessor cannot rely on a quitclaim as a basis for claiming title to

property under the Texas five-year limitations statute Tex Civ Prac amp Rem

Code sect 16025 Porter v Wilson 389 SW2d 650 (Tex 1965)

SALES CONTRACTS

Offer and Acceptance

Seller and Buyer

Property

Underwriter

Escrow Agent

Consideration

Earnest Money

County for Performance

Deadlines

Who (typically) pays

BUYER

Escrow fees

Document preparation

Recording charges for title transfer

Prorated share of taxes

Loan charges and fees

Title insurance premium

(lenderrsquos policy)

Survey

Inspection fees

Negotiable

SELLER

Escrow fees

Judgments liens against seller

Recording charges to clear

Title Insurance premium

(ownerrsquos policy)

Outstanding assessment

Prorated share of taxes

Delinquent taxes

Survey

1A Comprehensive

Focus is for

insuring title

Boundaries

Easements

Encumbrances

1B Boundary Survey

NOT for insuring title

Perimeters

Deed lines

Occupation lines

Rights of Way

Easements

Title Insurance

Texas Insurance Code Sec 2551003

The Texas Department of Insurance promulgates the Basic Manual

of Rules Rates and Forms for the Writing of Title Insurance in the

State of Texas (the Basic Manual)

Title commitments

Title policies

- Procedural Rules

- Rate Rules

- Forms of commitments policies coverage and

endorsements

- Claim procedures

- Bulletins issued by the Texas Department of

Insurance

Schedules

Schedule A-Commitment

Effective Date

Guaranty File (GF)

Type of Policy

Name of Insured

Nature of Interest

Record title owner

Legal description

Schedules

Schedule B-Exceptions to Coverage

Eight Standard Exceptions

- Restrictive Covenants

- Survey

- Homesteadcommunity property

- Streamwater rights

- Taxesassessments

- Docs creating insuredrsquos interests

- Construction

- Subordinate liens

Schedules

Schedule C-Curative Matters

Four Standard Requirements (Seller)

- Executionnotarizing docs

- Evidence of

- No parties in possession

- Taxes paid

- Improvements completedcontractors paid

- Legal access to property

- (alsomdashDeed of Trust is valid)

Schedule D-Disclosures

1 Who is the buyer (Governing law)

2 What kind of useproperty (Governing law) ndash

Highest bid FMV Appraisal

3 Negotiations

Deed

Purchase and sale agreementinterlocal

agreementother

Schedules and deadlines

Survey

Title commitment (buyer)

(becomes title insurance policy)

4 Closing documents

Execute Deed PSA

HUD settlement

statementdisclosuresaffidavits

In sumhellip

Page 17: Real Estate Issues for City Attorneys...Real Estate Issues for City Attorneys A Resource for Municipal Attorneys Who Don’t Speak Real Estate (featuring “Pinkacre”) Allison Bastian-Rodriguez,

Special warranty deed

The grantor warrants to defend the title conveyed to the

grantee only to the extent that claims are made by

through or under the grantor The SWD covers only title

defects going back to the grantor not to the grantorrsquos

predecessors in title

BTU By Through or Under

Tex Property Code Sec 5022(b)

Deed without warranty

The DWW passes grantorrsquos title to the grantee with an express

exclusion of warranties A DWW relieves the grantor of any

warranty responsibility for title defects yet provides the grantee a

true deed which transfers title--unlike a quitclaim

So if the grantor has title to the property but wonrsquot warrant title a

deed without warranty is preferable to a quitclaim

Quitclaim (not a) deed

Conveys only the right title and interest which may be none

Does not convey ldquoafter-acquiredrdquo title (title acquired after the date of the

execution and delivery of the quitclaim ldquodeedrdquo)

No recourse by the grantee or any subsequent owner of the property against the

grantor

A quitclaim gives notice to the grantee that title to the property may not be clear

so the grantee is not a bona fide purchaser for value

An adverse possessor cannot rely on a quitclaim as a basis for claiming title to

property under the Texas five-year limitations statute Tex Civ Prac amp Rem

Code sect 16025 Porter v Wilson 389 SW2d 650 (Tex 1965)

SALES CONTRACTS

Offer and Acceptance

Seller and Buyer

Property

Underwriter

Escrow Agent

Consideration

Earnest Money

County for Performance

Deadlines

Who (typically) pays

BUYER

Escrow fees

Document preparation

Recording charges for title transfer

Prorated share of taxes

Loan charges and fees

Title insurance premium

(lenderrsquos policy)

Survey

Inspection fees

Negotiable

SELLER

Escrow fees

Judgments liens against seller

Recording charges to clear

Title Insurance premium

(ownerrsquos policy)

Outstanding assessment

Prorated share of taxes

Delinquent taxes

Survey

1A Comprehensive

Focus is for

insuring title

Boundaries

Easements

Encumbrances

1B Boundary Survey

NOT for insuring title

Perimeters

Deed lines

Occupation lines

Rights of Way

Easements

Title Insurance

Texas Insurance Code Sec 2551003

The Texas Department of Insurance promulgates the Basic Manual

of Rules Rates and Forms for the Writing of Title Insurance in the

State of Texas (the Basic Manual)

Title commitments

Title policies

- Procedural Rules

- Rate Rules

- Forms of commitments policies coverage and

endorsements

- Claim procedures

- Bulletins issued by the Texas Department of

Insurance

Schedules

Schedule A-Commitment

Effective Date

Guaranty File (GF)

Type of Policy

Name of Insured

Nature of Interest

Record title owner

Legal description

Schedules

Schedule B-Exceptions to Coverage

Eight Standard Exceptions

- Restrictive Covenants

- Survey

- Homesteadcommunity property

- Streamwater rights

- Taxesassessments

- Docs creating insuredrsquos interests

- Construction

- Subordinate liens

Schedules

Schedule C-Curative Matters

Four Standard Requirements (Seller)

- Executionnotarizing docs

- Evidence of

- No parties in possession

- Taxes paid

- Improvements completedcontractors paid

- Legal access to property

- (alsomdashDeed of Trust is valid)

Schedule D-Disclosures

1 Who is the buyer (Governing law)

2 What kind of useproperty (Governing law) ndash

Highest bid FMV Appraisal

3 Negotiations

Deed

Purchase and sale agreementinterlocal

agreementother

Schedules and deadlines

Survey

Title commitment (buyer)

(becomes title insurance policy)

4 Closing documents

Execute Deed PSA

HUD settlement

statementdisclosuresaffidavits

In sumhellip

Page 18: Real Estate Issues for City Attorneys...Real Estate Issues for City Attorneys A Resource for Municipal Attorneys Who Don’t Speak Real Estate (featuring “Pinkacre”) Allison Bastian-Rodriguez,

Tex Property Code Sec 5022(b)

Deed without warranty

The DWW passes grantorrsquos title to the grantee with an express

exclusion of warranties A DWW relieves the grantor of any

warranty responsibility for title defects yet provides the grantee a

true deed which transfers title--unlike a quitclaim

So if the grantor has title to the property but wonrsquot warrant title a

deed without warranty is preferable to a quitclaim

Quitclaim (not a) deed

Conveys only the right title and interest which may be none

Does not convey ldquoafter-acquiredrdquo title (title acquired after the date of the

execution and delivery of the quitclaim ldquodeedrdquo)

No recourse by the grantee or any subsequent owner of the property against the

grantor

A quitclaim gives notice to the grantee that title to the property may not be clear

so the grantee is not a bona fide purchaser for value

An adverse possessor cannot rely on a quitclaim as a basis for claiming title to

property under the Texas five-year limitations statute Tex Civ Prac amp Rem

Code sect 16025 Porter v Wilson 389 SW2d 650 (Tex 1965)

SALES CONTRACTS

Offer and Acceptance

Seller and Buyer

Property

Underwriter

Escrow Agent

Consideration

Earnest Money

County for Performance

Deadlines

Who (typically) pays

BUYER

Escrow fees

Document preparation

Recording charges for title transfer

Prorated share of taxes

Loan charges and fees

Title insurance premium

(lenderrsquos policy)

Survey

Inspection fees

Negotiable

SELLER

Escrow fees

Judgments liens against seller

Recording charges to clear

Title Insurance premium

(ownerrsquos policy)

Outstanding assessment

Prorated share of taxes

Delinquent taxes

Survey

1A Comprehensive

Focus is for

insuring title

Boundaries

Easements

Encumbrances

1B Boundary Survey

NOT for insuring title

Perimeters

Deed lines

Occupation lines

Rights of Way

Easements

Title Insurance

Texas Insurance Code Sec 2551003

The Texas Department of Insurance promulgates the Basic Manual

of Rules Rates and Forms for the Writing of Title Insurance in the

State of Texas (the Basic Manual)

Title commitments

Title policies

- Procedural Rules

- Rate Rules

- Forms of commitments policies coverage and

endorsements

- Claim procedures

- Bulletins issued by the Texas Department of

Insurance

Schedules

Schedule A-Commitment

Effective Date

Guaranty File (GF)

Type of Policy

Name of Insured

Nature of Interest

Record title owner

Legal description

Schedules

Schedule B-Exceptions to Coverage

Eight Standard Exceptions

- Restrictive Covenants

- Survey

- Homesteadcommunity property

- Streamwater rights

- Taxesassessments

- Docs creating insuredrsquos interests

- Construction

- Subordinate liens

Schedules

Schedule C-Curative Matters

Four Standard Requirements (Seller)

- Executionnotarizing docs

- Evidence of

- No parties in possession

- Taxes paid

- Improvements completedcontractors paid

- Legal access to property

- (alsomdashDeed of Trust is valid)

Schedule D-Disclosures

1 Who is the buyer (Governing law)

2 What kind of useproperty (Governing law) ndash

Highest bid FMV Appraisal

3 Negotiations

Deed

Purchase and sale agreementinterlocal

agreementother

Schedules and deadlines

Survey

Title commitment (buyer)

(becomes title insurance policy)

4 Closing documents

Execute Deed PSA

HUD settlement

statementdisclosuresaffidavits

In sumhellip

Page 19: Real Estate Issues for City Attorneys...Real Estate Issues for City Attorneys A Resource for Municipal Attorneys Who Don’t Speak Real Estate (featuring “Pinkacre”) Allison Bastian-Rodriguez,

Quitclaim (not a) deed

Conveys only the right title and interest which may be none

Does not convey ldquoafter-acquiredrdquo title (title acquired after the date of the

execution and delivery of the quitclaim ldquodeedrdquo)

No recourse by the grantee or any subsequent owner of the property against the

grantor

A quitclaim gives notice to the grantee that title to the property may not be clear

so the grantee is not a bona fide purchaser for value

An adverse possessor cannot rely on a quitclaim as a basis for claiming title to

property under the Texas five-year limitations statute Tex Civ Prac amp Rem

Code sect 16025 Porter v Wilson 389 SW2d 650 (Tex 1965)

SALES CONTRACTS

Offer and Acceptance

Seller and Buyer

Property

Underwriter

Escrow Agent

Consideration

Earnest Money

County for Performance

Deadlines

Who (typically) pays

BUYER

Escrow fees

Document preparation

Recording charges for title transfer

Prorated share of taxes

Loan charges and fees

Title insurance premium

(lenderrsquos policy)

Survey

Inspection fees

Negotiable

SELLER

Escrow fees

Judgments liens against seller

Recording charges to clear

Title Insurance premium

(ownerrsquos policy)

Outstanding assessment

Prorated share of taxes

Delinquent taxes

Survey

1A Comprehensive

Focus is for

insuring title

Boundaries

Easements

Encumbrances

1B Boundary Survey

NOT for insuring title

Perimeters

Deed lines

Occupation lines

Rights of Way

Easements

Title Insurance

Texas Insurance Code Sec 2551003

The Texas Department of Insurance promulgates the Basic Manual

of Rules Rates and Forms for the Writing of Title Insurance in the

State of Texas (the Basic Manual)

Title commitments

Title policies

- Procedural Rules

- Rate Rules

- Forms of commitments policies coverage and

endorsements

- Claim procedures

- Bulletins issued by the Texas Department of

Insurance

Schedules

Schedule A-Commitment

Effective Date

Guaranty File (GF)

Type of Policy

Name of Insured

Nature of Interest

Record title owner

Legal description

Schedules

Schedule B-Exceptions to Coverage

Eight Standard Exceptions

- Restrictive Covenants

- Survey

- Homesteadcommunity property

- Streamwater rights

- Taxesassessments

- Docs creating insuredrsquos interests

- Construction

- Subordinate liens

Schedules

Schedule C-Curative Matters

Four Standard Requirements (Seller)

- Executionnotarizing docs

- Evidence of

- No parties in possession

- Taxes paid

- Improvements completedcontractors paid

- Legal access to property

- (alsomdashDeed of Trust is valid)

Schedule D-Disclosures

1 Who is the buyer (Governing law)

2 What kind of useproperty (Governing law) ndash

Highest bid FMV Appraisal

3 Negotiations

Deed

Purchase and sale agreementinterlocal

agreementother

Schedules and deadlines

Survey

Title commitment (buyer)

(becomes title insurance policy)

4 Closing documents

Execute Deed PSA

HUD settlement

statementdisclosuresaffidavits

In sumhellip

Page 20: Real Estate Issues for City Attorneys...Real Estate Issues for City Attorneys A Resource for Municipal Attorneys Who Don’t Speak Real Estate (featuring “Pinkacre”) Allison Bastian-Rodriguez,

SALES CONTRACTS

Offer and Acceptance

Seller and Buyer

Property

Underwriter

Escrow Agent

Consideration

Earnest Money

County for Performance

Deadlines

Who (typically) pays

BUYER

Escrow fees

Document preparation

Recording charges for title transfer

Prorated share of taxes

Loan charges and fees

Title insurance premium

(lenderrsquos policy)

Survey

Inspection fees

Negotiable

SELLER

Escrow fees

Judgments liens against seller

Recording charges to clear

Title Insurance premium

(ownerrsquos policy)

Outstanding assessment

Prorated share of taxes

Delinquent taxes

Survey

1A Comprehensive

Focus is for

insuring title

Boundaries

Easements

Encumbrances

1B Boundary Survey

NOT for insuring title

Perimeters

Deed lines

Occupation lines

Rights of Way

Easements

Title Insurance

Texas Insurance Code Sec 2551003

The Texas Department of Insurance promulgates the Basic Manual

of Rules Rates and Forms for the Writing of Title Insurance in the

State of Texas (the Basic Manual)

Title commitments

Title policies

- Procedural Rules

- Rate Rules

- Forms of commitments policies coverage and

endorsements

- Claim procedures

- Bulletins issued by the Texas Department of

Insurance

Schedules

Schedule A-Commitment

Effective Date

Guaranty File (GF)

Type of Policy

Name of Insured

Nature of Interest

Record title owner

Legal description

Schedules

Schedule B-Exceptions to Coverage

Eight Standard Exceptions

- Restrictive Covenants

- Survey

- Homesteadcommunity property

- Streamwater rights

- Taxesassessments

- Docs creating insuredrsquos interests

- Construction

- Subordinate liens

Schedules

Schedule C-Curative Matters

Four Standard Requirements (Seller)

- Executionnotarizing docs

- Evidence of

- No parties in possession

- Taxes paid

- Improvements completedcontractors paid

- Legal access to property

- (alsomdashDeed of Trust is valid)

Schedule D-Disclosures

1 Who is the buyer (Governing law)

2 What kind of useproperty (Governing law) ndash

Highest bid FMV Appraisal

3 Negotiations

Deed

Purchase and sale agreementinterlocal

agreementother

Schedules and deadlines

Survey

Title commitment (buyer)

(becomes title insurance policy)

4 Closing documents

Execute Deed PSA

HUD settlement

statementdisclosuresaffidavits

In sumhellip

Page 21: Real Estate Issues for City Attorneys...Real Estate Issues for City Attorneys A Resource for Municipal Attorneys Who Don’t Speak Real Estate (featuring “Pinkacre”) Allison Bastian-Rodriguez,

Who (typically) pays

BUYER

Escrow fees

Document preparation

Recording charges for title transfer

Prorated share of taxes

Loan charges and fees

Title insurance premium

(lenderrsquos policy)

Survey

Inspection fees

Negotiable

SELLER

Escrow fees

Judgments liens against seller

Recording charges to clear

Title Insurance premium

(ownerrsquos policy)

Outstanding assessment

Prorated share of taxes

Delinquent taxes

Survey

1A Comprehensive

Focus is for

insuring title

Boundaries

Easements

Encumbrances

1B Boundary Survey

NOT for insuring title

Perimeters

Deed lines

Occupation lines

Rights of Way

Easements

Title Insurance

Texas Insurance Code Sec 2551003

The Texas Department of Insurance promulgates the Basic Manual

of Rules Rates and Forms for the Writing of Title Insurance in the

State of Texas (the Basic Manual)

Title commitments

Title policies

- Procedural Rules

- Rate Rules

- Forms of commitments policies coverage and

endorsements

- Claim procedures

- Bulletins issued by the Texas Department of

Insurance

Schedules

Schedule A-Commitment

Effective Date

Guaranty File (GF)

Type of Policy

Name of Insured

Nature of Interest

Record title owner

Legal description

Schedules

Schedule B-Exceptions to Coverage

Eight Standard Exceptions

- Restrictive Covenants

- Survey

- Homesteadcommunity property

- Streamwater rights

- Taxesassessments

- Docs creating insuredrsquos interests

- Construction

- Subordinate liens

Schedules

Schedule C-Curative Matters

Four Standard Requirements (Seller)

- Executionnotarizing docs

- Evidence of

- No parties in possession

- Taxes paid

- Improvements completedcontractors paid

- Legal access to property

- (alsomdashDeed of Trust is valid)

Schedule D-Disclosures

1 Who is the buyer (Governing law)

2 What kind of useproperty (Governing law) ndash

Highest bid FMV Appraisal

3 Negotiations

Deed

Purchase and sale agreementinterlocal

agreementother

Schedules and deadlines

Survey

Title commitment (buyer)

(becomes title insurance policy)

4 Closing documents

Execute Deed PSA

HUD settlement

statementdisclosuresaffidavits

In sumhellip

Page 22: Real Estate Issues for City Attorneys...Real Estate Issues for City Attorneys A Resource for Municipal Attorneys Who Don’t Speak Real Estate (featuring “Pinkacre”) Allison Bastian-Rodriguez,

Survey

1A Comprehensive

Focus is for

insuring title

Boundaries

Easements

Encumbrances

1B Boundary Survey

NOT for insuring title

Perimeters

Deed lines

Occupation lines

Rights of Way

Easements

Title Insurance

Texas Insurance Code Sec 2551003

The Texas Department of Insurance promulgates the Basic Manual

of Rules Rates and Forms for the Writing of Title Insurance in the

State of Texas (the Basic Manual)

Title commitments

Title policies

- Procedural Rules

- Rate Rules

- Forms of commitments policies coverage and

endorsements

- Claim procedures

- Bulletins issued by the Texas Department of

Insurance

Schedules

Schedule A-Commitment

Effective Date

Guaranty File (GF)

Type of Policy

Name of Insured

Nature of Interest

Record title owner

Legal description

Schedules

Schedule B-Exceptions to Coverage

Eight Standard Exceptions

- Restrictive Covenants

- Survey

- Homesteadcommunity property

- Streamwater rights

- Taxesassessments

- Docs creating insuredrsquos interests

- Construction

- Subordinate liens

Schedules

Schedule C-Curative Matters

Four Standard Requirements (Seller)

- Executionnotarizing docs

- Evidence of

- No parties in possession

- Taxes paid

- Improvements completedcontractors paid

- Legal access to property

- (alsomdashDeed of Trust is valid)

Schedule D-Disclosures

1 Who is the buyer (Governing law)

2 What kind of useproperty (Governing law) ndash

Highest bid FMV Appraisal

3 Negotiations

Deed

Purchase and sale agreementinterlocal

agreementother

Schedules and deadlines

Survey

Title commitment (buyer)

(becomes title insurance policy)

4 Closing documents

Execute Deed PSA

HUD settlement

statementdisclosuresaffidavits

In sumhellip

Page 23: Real Estate Issues for City Attorneys...Real Estate Issues for City Attorneys A Resource for Municipal Attorneys Who Don’t Speak Real Estate (featuring “Pinkacre”) Allison Bastian-Rodriguez,

Title Insurance

Texas Insurance Code Sec 2551003

The Texas Department of Insurance promulgates the Basic Manual

of Rules Rates and Forms for the Writing of Title Insurance in the

State of Texas (the Basic Manual)

Title commitments

Title policies

- Procedural Rules

- Rate Rules

- Forms of commitments policies coverage and

endorsements

- Claim procedures

- Bulletins issued by the Texas Department of

Insurance

Schedules

Schedule A-Commitment

Effective Date

Guaranty File (GF)

Type of Policy

Name of Insured

Nature of Interest

Record title owner

Legal description

Schedules

Schedule B-Exceptions to Coverage

Eight Standard Exceptions

- Restrictive Covenants

- Survey

- Homesteadcommunity property

- Streamwater rights

- Taxesassessments

- Docs creating insuredrsquos interests

- Construction

- Subordinate liens

Schedules

Schedule C-Curative Matters

Four Standard Requirements (Seller)

- Executionnotarizing docs

- Evidence of

- No parties in possession

- Taxes paid

- Improvements completedcontractors paid

- Legal access to property

- (alsomdashDeed of Trust is valid)

Schedule D-Disclosures

1 Who is the buyer (Governing law)

2 What kind of useproperty (Governing law) ndash

Highest bid FMV Appraisal

3 Negotiations

Deed

Purchase and sale agreementinterlocal

agreementother

Schedules and deadlines

Survey

Title commitment (buyer)

(becomes title insurance policy)

4 Closing documents

Execute Deed PSA

HUD settlement

statementdisclosuresaffidavits

In sumhellip

Page 24: Real Estate Issues for City Attorneys...Real Estate Issues for City Attorneys A Resource for Municipal Attorneys Who Don’t Speak Real Estate (featuring “Pinkacre”) Allison Bastian-Rodriguez,

Schedules

Schedule A-Commitment

Effective Date

Guaranty File (GF)

Type of Policy

Name of Insured

Nature of Interest

Record title owner

Legal description

Schedules

Schedule B-Exceptions to Coverage

Eight Standard Exceptions

- Restrictive Covenants

- Survey

- Homesteadcommunity property

- Streamwater rights

- Taxesassessments

- Docs creating insuredrsquos interests

- Construction

- Subordinate liens

Schedules

Schedule C-Curative Matters

Four Standard Requirements (Seller)

- Executionnotarizing docs

- Evidence of

- No parties in possession

- Taxes paid

- Improvements completedcontractors paid

- Legal access to property

- (alsomdashDeed of Trust is valid)

Schedule D-Disclosures

1 Who is the buyer (Governing law)

2 What kind of useproperty (Governing law) ndash

Highest bid FMV Appraisal

3 Negotiations

Deed

Purchase and sale agreementinterlocal

agreementother

Schedules and deadlines

Survey

Title commitment (buyer)

(becomes title insurance policy)

4 Closing documents

Execute Deed PSA

HUD settlement

statementdisclosuresaffidavits

In sumhellip

Page 25: Real Estate Issues for City Attorneys...Real Estate Issues for City Attorneys A Resource for Municipal Attorneys Who Don’t Speak Real Estate (featuring “Pinkacre”) Allison Bastian-Rodriguez,

Schedules

Schedule B-Exceptions to Coverage

Eight Standard Exceptions

- Restrictive Covenants

- Survey

- Homesteadcommunity property

- Streamwater rights

- Taxesassessments

- Docs creating insuredrsquos interests

- Construction

- Subordinate liens

Schedules

Schedule C-Curative Matters

Four Standard Requirements (Seller)

- Executionnotarizing docs

- Evidence of

- No parties in possession

- Taxes paid

- Improvements completedcontractors paid

- Legal access to property

- (alsomdashDeed of Trust is valid)

Schedule D-Disclosures

1 Who is the buyer (Governing law)

2 What kind of useproperty (Governing law) ndash

Highest bid FMV Appraisal

3 Negotiations

Deed

Purchase and sale agreementinterlocal

agreementother

Schedules and deadlines

Survey

Title commitment (buyer)

(becomes title insurance policy)

4 Closing documents

Execute Deed PSA

HUD settlement

statementdisclosuresaffidavits

In sumhellip

Page 26: Real Estate Issues for City Attorneys...Real Estate Issues for City Attorneys A Resource for Municipal Attorneys Who Don’t Speak Real Estate (featuring “Pinkacre”) Allison Bastian-Rodriguez,

Schedules

Schedule C-Curative Matters

Four Standard Requirements (Seller)

- Executionnotarizing docs

- Evidence of

- No parties in possession

- Taxes paid

- Improvements completedcontractors paid

- Legal access to property

- (alsomdashDeed of Trust is valid)

Schedule D-Disclosures

1 Who is the buyer (Governing law)

2 What kind of useproperty (Governing law) ndash

Highest bid FMV Appraisal

3 Negotiations

Deed

Purchase and sale agreementinterlocal

agreementother

Schedules and deadlines

Survey

Title commitment (buyer)

(becomes title insurance policy)

4 Closing documents

Execute Deed PSA

HUD settlement

statementdisclosuresaffidavits

In sumhellip

Page 27: Real Estate Issues for City Attorneys...Real Estate Issues for City Attorneys A Resource for Municipal Attorneys Who Don’t Speak Real Estate (featuring “Pinkacre”) Allison Bastian-Rodriguez,

1 Who is the buyer (Governing law)

2 What kind of useproperty (Governing law) ndash

Highest bid FMV Appraisal

3 Negotiations

Deed

Purchase and sale agreementinterlocal

agreementother

Schedules and deadlines

Survey

Title commitment (buyer)

(becomes title insurance policy)

4 Closing documents

Execute Deed PSA

HUD settlement

statementdisclosuresaffidavits

In sumhellip

Page 28: Real Estate Issues for City Attorneys...Real Estate Issues for City Attorneys A Resource for Municipal Attorneys Who Don’t Speak Real Estate (featuring “Pinkacre”) Allison Bastian-Rodriguez,