Texas Real Estate Paper 28

d.
Sellers are required to give information on how and where to seek information regarding registered sex offenders to prospective buyers, but neither the agent nor the seller is required to make such specific disclosures.

b.
Fred can claim depreciation only on the cost of the improvements, which represent 80% of his purchase price. So, $300,000 × .80 = $240,000 depreciable value divided by 25.5 = $8,727.27.

c.
Familial status is defined as one or more individuals under the age of eighteen living with a parent or person having legal custody of the individual. This protection also covers pregnant women and any person seeking to secure legal custody of a person under the age of eighteen.

a.
Bob will get a mortgage for $112,800 ($141,000 × 80%). Three points will cost $3,384 ($112,800 × 0.03). The Franks will end up with $141,000 less $3,384, or $137,616. This is $384 less than Anne Hill’s all cash offer ($138,000 – $137,616).

d.
Licensed salespersons may associate with a broker as an employee or an independent contractor. Most are independent contractors meaning they work as self-employed persons and assume responsibility for paying their own income tax and Social Security, cannot receive “employee benefits,” and are compensated on production of sales.

b.
The Owens will pay at closing a total of $5,000 down payment. ($100,000 × 5%) + $1,000 closing costs + $1,425 in mortgage insurance premium (1.5% of $95,000 mortgage) = $7,425.

c.
A city does not tax property outside its city limits. While the value of the property may be affected by whether it is or is not within a city, the possibility of annexation is a fact and the most important disclosure to be made.

c.
While certain residential sellers are exempt from the seller disclosure notice requirements such as new home builders, sellers of foreclosures, or estate sales, the seller is required to make certain statutorily required disclosures. The buyer who never receives the disclosure may terminate the contract.

d.
The complex details of commercial property are best administered by a professional property manager.

d. This scenario is known as a net listing and is prohibited in most states. This practice exposes unsophisticated owners to the potential for outrageous selling fees.