Texas Real Estate Paper 7

a.
The defrauded party generally has the right to terminate the contract. This makes it a voidable contract.

b.
Federal Fair Housing Laws prohibit “blockbusting,” a method used to induce homeowners to sell their properties by representing that minorities may be moving into the area and lowering the property values.

a.
If the deed is silent as to the form of ownership, the law assumes that the parties are tenants in common.

b.
The TILA is a consumer protection law stating that borrowers must be given full, complete, and clear information regarding the true cost of credit.

c.
The lack of dollar consideration may invalidate an option. The courts want “something at risk” for the right to purchase/terminate at a later time.

b.
Insisting on a thorough property inspection by the buyer protects the seller from subsequent civil liability because the buyer will have been given every opportunity to asses the integrity of the property.

b.
A landlord may refuse to lease property if the prospective tenant has a pet. Pets and pet owners are not protected under Fair Housing Laws.

b.
If more than one broker has a listing with the same seller, it is not an exclusive listing. An open listing means that only the broker who procures the buyer will be entitled to any part of the commission.

c.
The seller is obligated under deceptive trade practices laws to disclose any information he knows about his property. When the agent has such knowledge, he also must make the disclosure.

d.
Current legal thinking with regard to owner’s obligations under a residential rental contract holds that the owner is obligated to repair only those items required by law.