Appendix 2: Texas Laws Affecting Real Estate Lending

Subject

Statute

Coverage

Adverse Possession

TEX. CIV. PRAC. & REM. CODE §§ 16.021-.037

Statute of limitation for claiming ownership

Ad Valorem Taxes

TEX. TAX CODE §§ 11.01-.02

Priority of tax liens, redemption rights after foreclosure

Affidavits of Heirship

TEX. EST. CODE ANN. § 205.007

Transfer of homestead by decedents estate

Affordable Housing Investments

26 U.S.C.A. § 42
10 TEX. ADMIN. CODE ch. 11
42 U.S.C.A. § 12742 et seq.
24 C.F.R. Parts 91-92

Tax credits, funding for projects, requirements for projects

Alcoholic Beverages

TEX. ALCO. BEV. CODE

Limits liens on licenses and transfer of licenses on foreclosure of business

Alternative Dispute Resolution (ADR)

TEX. CIV. PRAC. & REM. CODE § 154
22 TEX. ADMIN. CODE § 537.11

ADR contained in standard Texas Real Estate Commission contracts

Americans with Disabilities Act and Related Statutes

Americans with Disabilities Act of 1990, 42 U.S.C.A. §§ 12101-12183, 28 C.F.R. Part 36,
36 C.F.R. Part 1191
Rehabilitation Act of 1973 U.S.C.A. § 794b

TEX. GOV’T CODE ch. 469
16 TEX. ADMIN. CODE ch. 68
TEX. HUM. RES. CODE ch. 121

Creates minimum standards and guidelines

Annexation

TEX. LOC. GOV’T CODE ch. 43

Real estate annexation by municipalities

Appraisals

TEX. OCC. CODE ch 1103

Licensing requirements for appraisers

Arbitration

TEX. CIV. PRAC. & REM. CODE § 154.027

TEX. BUS. & COMM. CODE § 272.001-.002

Agreement to arbitrate dispute over construction of Texas real estate outside Texas not binding

Astronomical Lighting

TEX. LOC. GOV’T CODE § 240.032

Restricts lighting around observatories

Assumed Names

TEX. BUS. & COMM. CODE ch. 71

When certificates must be filed

Attorney’s Fees in Deed Restriction Dispute

TEX. PROP. CODE § 5.006

Recovery to prevailing party

Bankruptcy

TEX. PROP. CODE ANN. chs. 41-42
TEX. BUS. & COMM. CODE ANN. ch. 23

Real Property exemptions/fraudulent transfers

Beaches

TEX. NAT. RES. CODE §§ 33.101, 33.601, 61.012-.014

Public access, coastal erosion

Beauty Salon Premises and Leases

TEX. ADMIN. CODE §§ 83.70-.71

Regulations

Billboards

TEX. CIV. PRAC. & REM. CODE ch. 80

Trespass of outdoor signs

Boldface Type or Other Conspicuous Language

TEX. BUS. & COMM. CODE §§ 273.001-.003
TEX. FIN. CODE § 393.202

Requirements

Brokers

TEX. OCC. CODE ch. 1101

Regulation of real estate Brokers

Cash Proceeds

26 U.S.C.A. § 60501

Reporting Requirements for cash transactions

Cemeteries

TEX. HEALTH & SAFETY CODE Title 8
TEXAS BUS. ORG. CODE § 2.003

Regulation on internment, sale of lots, etc.

Child Support Liens

TEX. FAM. CODE § 157.314

Attachment of liens to non-homestead real estate

Choice of Law

TEX. BUS. & COM. CODE ch. 271

Enforceability requirements

Civil and Criminal Forfeiture Laws

21 U.S.C.A. § 881
TEX. CRIM. PROC. CODE Ch. 59

Forfeiture of real estate

Coastal Properties

TEX. NAT. RES. CODE § 61.025
TEX. NAT. RES. CODE ANN. § 33.135

Notices required in real property transactions

Community Property

Tex. Const. art. 16, § 15.

Ownership of real estate by husband and wife

Community Homes; Group Homes

TEX. HUM. RES. CODE ch. 123

Restrictive covenants, regulation

Community Property with Right of Survivorship

TEX. EST. CODE § 112.051

Rights of surviving spouses in real estate

Condemnation / Eminent Domain

U.S. Const. Amends. V; XIV, § 1; Tex. Const. Art. I §§ 17, 19.

Right of state of Texas to take real property for government use

Confessions of Judgment

TEX. CIV. PRAC. & REM. CODE § 30.001

Unenforceable in real estate contracts

Construction

TEX. CIV. PRAC. & REM. CODE §§ 130.001-.002;

TEX. BUS. & COM. CODE ch. 272

Restrictions on indemnity agreements with contractors and choice of law provisions in construction contracts

Consumer Laws

TEX. BUS. & COM. CODE §§ 17.41-.63

Protection of consumers/required disclosures

Contractor Waivers

TEX. PROP. CODE § 53.284

Prescribed forms

Corporations

TEX. BUS. ORG. CODE 2.001, 2.003, 2.007, 2.101(3)-(7); 3.005

Relates to entities dealing with real estate

Correction Documents

TEX. PROP. CODE § 5.027

Requirements

Covenants Not to Compete

TEX. BUS. & COM. CODE § 15.50

Enforceability requirements

Criminal Record Checks of Employees

TEX. HEALTH & SAF. CODE §§ 765.001 to 765.007

Employees of residential dwelling projects

Deceptive Trade Practices Act (DTPA)

TEX. BUS. & COM. CODE ch. 17

TEX. PROP. CODE § 41.007

TEX. PROP. CODE ch. 5, subch. D

Violation of Property Code in consumer transaction/may be DTPA violation

Declaratory Judgments

TEX. CIV. PRAC. & REM. CODE ch. 37

Applies to construction of deed or written contract

Deeds

TEX. GOV’T CODE ch. 83

Requirements of deed preparer

Deed as a Mortgage Prohibited

TEX. BUS. & COM. CODE ch. 21A

Prohibition

Deeds of Trust

TEX. PROP. CODE ch. 51

TEX. GOV’T CODE ch. 83

Requirements of deed of trust and who can prepare

Development

TEX. LOC. GOV’T CODE §§ 212.009, 247.001

Plans, plats, permits and inspections

Disabled Spouse

TEX. FAM. CODE ch. 5

Tex. Const. art. XVI, §§ 50-51.

Permissible liens on and sale of homestead

Disclaimer of Interest in Decedent’s Estate

TEX. ESTATES CODE ch. 122

Requirements

Disclosures

TEX. OCC. CODE §§ 101.557-.561, 1101.652

22 TEX. ADMIN. CODE § 535

TEX. NAT. RES. CODE §§ 33.135, 61.025

TEX. WATER CODE §§ 49.452, 54.016(h)(4)(A)

TEX. LOC. GOV’T CODE §§ 212.151-.158

30 TEX. ADMIN. CODE § 334.9

TEX. PROP. CODE ch. 221

15 U.S.C.A. §§ 1701-1720

12 C.F.R. 1010-1012

15 U.S.C. §§ 41, 45(a), 46(g)

16 C.F.R. pt. 460

16 C.F.R. pt. 433

Disclosures in real estate transactions

Discrimination

TEX. LOC. GOV’T CODE § 214.903

TEX. PROP. CODE ch. 301

Adoption of fair housing ordinances

Due-on-Sale Clauses

12 U.S.C.A. § 1701j-3

12 C.F.R. pt. 191

Regulation

Durable Powers of Attorney

TEX. EST. CODE chs. 751- 752

Requirements

Early Termination of Lease by Tenant

TEX. PROP. CODE § 92.016, 92.017

Criteria

Elderly

TEXAS HEALTH & SAFETY CODE ch. 242

Design standards

Electronic Funds Transfers

TEX. BUS. & COM. CODE ch. 4A

Governing statutes

Endangered Species Act

16 .S.C.A. §§ 1531-1544

Limits on development of real estate

Environmental Laws

CERCLA, 42 U.S.C.A. ch. 103

Resource Conservation and Recovery Act, 42 U.S.C.A. ch. 82

Endangered Species Act, 16 U.S.C.A. §§ 1531-1544

Federal Water Pollution Control Act, 33 U.S.C.A. §§ 1251-1377

Federal Clean Air Act, 42 U.S.C.A. ch. 85

National Emission Standard for Hazardous Air Pollutants, 40 C.F.R. pt. 61

Regulations dealing with CFCs, 40 C.F.R. pt. 82

Asbestos Hazard Emergency Response Act of 1986, 15 U.S.C.A. ch. 53

Regulations dealing with Asbestos Hazard Emergency Response Act of 1986, 40 C.F.R. pt. 763

Occupational Safety and Health Act, 29 C.F.R.pt. 1910

Housing and Community Development Act, Title X, P.L. 102-550, 106 Stat. 3672, 3897

Toxic Substances Control Act, 15 U.S.C.A. §§ 2601-2629

Texas Solid Waste Disposal Act, TEX. HEALTH & SAFETY CODE ch. 361

Texas Hazardous Substances Spill Prevention and Control Act, TEX. WATER CODE ANN. § 26.261-.267

Texas Coastal Coordination Act, TEX. NAT. RES. CODE ch. 33, subch. F

31 TEX. ADMIN. CODE pt. 16 (Coastal Management  Program)

TEX. HEALTH & SAFETY CODE §§ 361.531-.539 (Statute regulating developments over abandoned landfills)

Impact real estate

Equal Credit Opportunity

15 U.S.C.A. §§ 1691-1691f

12 C.F.R. pt. 202

Credit applications

Evictions

TEX. PROP. CODE ANN. ch. 24

Process

Executions

Tex. R. Civ. P. 310

Process

Fair Debt Credit Collection Practices Act

15 U.S.C.A. § 1692a

Requirements in collection of debt

Fair Housing

24 C.F.R. §§ 100.200-.205

TEX. LOC. GOV’T CODE § 214.903

Regulations on handicap access in multifamily housing structures

Family Law

TEX. FAM. CODE §§ 9.001, 9.006

Tex. Const. art. XVI, § 15.

Property division and rights

Federal Tax Liens

26 U.S.C.A. § 7425(a)-(b)

26 C.F.R. §301.7425-2

26 U.S.C.A. § 7425(c)

Id.; 26 C.F.R. §301.7425-2

Process

Fences and Gates

TEX. AGRIC. CODE ANN. §§ 143.001-.002

Requirements for cleared and cultivated land

Fixtures

TEX. BUS. & COM. CODE §§ 9.502(c), 9.515(g)

Consensual lien requirements

Flood Insurance

42 U.S.C.A. §§ 4001-4128

TEX. LOC. GOV’T CODE ch 561 (county’s power affecting flood control)

TEX. LOC. GOV’T. CODE § 240.901 (participation in federal flood insurance policy)

TEX. WATER CODE ANN. §§ 16.311-16.321 (Flood Control and Insurance Act).

Requirements, building restrictions, disclosures

Foreclosure Rescue Services

TEX. BUS. & COM. CODE § 21

Regulation

Foreign Investments

22 U.S.C.A. §§ 3101-08

7 U.S.C.A. §§ 3501-08

31 U.S.C.A. §§ 5311-22

26 U.S.C.A. § 6039C

Reporting requirements

Franchising

Texas Business Opportunity Act, TEX. BUS. & COM. CODE ch. 51

Requirements

Fraud in Real Estate Transaction

TEX. BUS. & COM. CODE § 27.01

Criteria for establishing

Fraudulent Transfers

TEX. BUS. & COM. CODE § 24.002

Requirements for establishing

FTC Holder in Due Course Rule

16 C.F.R. § 433.2

Requirements

Good Faith and Fair Dealing

TEX. BUS. & COM. CODE § 1.304

Obligation

Guarantors

TEX. CIV. PRAC. & REM. CODE ch. 43

Subrogation rights

Hart-Scott-Rodino Act

15 U.S.C.A. § 18a et seq.

Approval requirements in very large transactions

Hazardous Conditions

TEX. HEALTH & SAFETY CODE ch. 756

Duties of land owner

Hazardous Waste Liens

TEX. HEALTH & SAFETY CODE § 361.194

42 U.S.C.A. §9607(l)

Liens in favor of government

Historic Structures

TEX GOV’T CODE §§ 442.001-.207

Regulation

Home Equity Loan Enforcement

Tex. R. Civ. P. 735-36

Procedures

Home Mortgage Disclosure Act of 1976

12 U.S.C.A. §§ 2801-11; 12 C.F.R. 203

Data compilation requirements

Homesteads

TEX PROP. CODE §§ 41, 52.0012; Tex. Const. art. XVI, §§ 50-51.

TEX. PROP. CODE § 41.001(b).

TEX. FAM. CODE § 5.001

Rights and criteria

Hotel Occupancy Taxes

TEX. TAX. CODE chs. 156, 351-52

Requirements and parameters

Indemnity Agreements

TEX CIV. PRAC. & REM. CODE chs. 127-28

Limits in certain real estate related contracts

Inheritance

Tex. Const. art. I, § 21.

Governs in absence of will

Innocent Purchaser Defense

42 U.S.C.A. § 9601(35)

Applicable to limit environmental liability

Interstate Land Sales Full Disclosure Act

15 U.S.C.A. §§ 1701-20

24 C.F.R. 1710

Required filings

IRS Information Return (Foreclosures)

26 U.S.C.A. § 6050J

26 C.F.R. § 1.6050J-1T.

Reporting requirement

Joint Tenancy with Right of Survivorship

TEX. EST. CODE ANN. §§ 111.001-.002 & ch. 112.

Creation and criteria

Judgment Liens

TEX. CIV. PRAC. & REM. CODE § 34.001

TEX. CIV. PRAC. & REM. CODE ch. 35

TEX. PROP. CODE §§ 14.002, 52.007

28 U.S.C.A. § 1962

Tex. Const. art. XVI, § 50.

Abstracts, dormancy and revival

Landfills

TEX. HEALTH & SAFETY CODE §§ 361.531-40

Permitting and soil testing

Landlord Duty to Repair

Tex. R. Civ. P. 509.1

TEX. PROP. CODE ch. 92

Tenant’s rights

Lead Paint Disclosures

42 U.S.C.A. §§ 4851-4856

Requirements

Legal Incapacity

TEX. EST. CODE §§ 1101.101

TEX PROP. CODE ch. 142

Standards for guardianship to deal with real estate

Letters of Credit

TEX. BUS. & COM. CODE §§ 5.101-.118

Requirements

Liability of Landowners

42 U.S.C.A. 9607(b)

TEX. CIV. PRAC. & REM. CODE § 75.001-.007

TEX. HEALTH & SAFETY CODE §§ 765.001-.007

Criteria

Limitations

TEX. CIV. PRAC. & REM. CODE ch. 16

Time limits for filing various actions

Limited Liability Companies

TEX. BUS. ORG. CODE Titles I and III

Entities which deal in real estate

Limited Liability Partnerships

TEX. BUS. ORG. CODE Title IV

Entities which deal in real estate

Liquidated Damages Clauses

TEX. BUS. & COM. CODE § 2.718

Enforcement standards

Loan Documents

TEX. BUS. & COM. CODE § 26.02

TEX GOV’T CODE ch. 83

Disclosures

Manufactured Housing as Real Personal Property

TEX. PROP. CODE ANN. § 2.001

Criteria

Master or Consolidated Form Filings

TEX PROP. CODE § 12.009

TEX. BUS. & COM. CODE § 9.514

Requirements

Mechanic’s Liens

TEX. PROP. CODE ch. 53

TEX GOV’T CODE ch. 2253

40 U.S.C.A. § 3131

Criteria and procedures for enforcement

Mineral Rights

TEX. CIV. PRAC. & REM. CODE § 127.001

TEX. NAT. RES. CODE §§ 51.054, 51.307

Restrictions in mineral rights agreements and provisions on mineral classified lands

Minors

TEX. FAM. CODE § 1.104

TEX. EST. CODE § 1351.001

TEX. PROP. CODE § 142.001

Legal capacity to manage and sell land

Missing Co-Owner

TEX. PROP. CODE § 65.002

Conditions for actions by co-owner

Mobile Homes

TEX. OCC. CODE ch. 1201

10 TEX. ADMIN. CODE ch. 80

TEX. TRANSP. CODE ch. 501

43 TEX. ADMIN. CODE ch. 217

Regulation

Mortgage Origination (Residential-Safe Act)

TEX. FIN. CODE ch. 180

Registration and licensing of mortgage loan originators

Municipal Utility Districts [MUDs]

TEX. WATER CODE ch. 54

Notifications required by seller to purchaser

NAFTA

North American Free Trade Agreement, Sep. 13, 1993, § 1105, available at https://www.nafta-sec-alena.org/Default.aspx

Treatment of Canadian and Mexican investors in U.S. real estate

Navigable Streams

TEX. NAT. RES. CODE §§ 21.001(3), 21.012(b)

Effects survey lines

Non-Profit Corporations

TEX. BUS. ORG. CODE ch. 22

Governs real estate transactions

Non-Real Estate Taxes

TEX. TAX CODE § 111.020

Outlines taxes related to commercial real estate owing by certain sellers

Notaries

TEX. CIV. PRAC. & REM. CODE ch. 121

Requirements

Notario Publicos

TEX. GOV’T CODE § 406.017

Disclosures

Notice of Conveyance Taken “Subject to” Liens

TEX. PROP. CODE § 5.016

Notice requirements

Notice of Possible Annexation

TEX. PROP. CODE § 5.011

Requirements

Nuisance

TEX. CIV. PRAC. & REM. CODE ch. 125

Regulates public nuisances on property

Open Space Exemption

Tex. Const. art. VIII, § 1-d-1; TEX. TAX  CODE §§ 23.81-.87

Exemption from Ad Valorem tax

Outdoor Signs

TEX. CIV. PRAC. & REM. CODE ch. 80

Trespass of

Partition

Tex. R. Civ. P. 756-71

Procedures

Partnerships

TEX. BUS. ORG. CODE tit. 4

Entities which deal in real estate

Perpetuities (Rule Against Perpetuities)

Tex. Const. art. I, § 26.

Outlines rule

Personal Property Leases

TEX. BUS. & COM. CODE ch. 2A

Governs and regulates

Pest Control

TEX. OCC. CODE ch 1951

Regulation

Pipeline Disclosures

TEX. PROP. CODE § 5.013

Required by seller of unimproved property

Prenuptial Agreements

TEX. FAM. CODE §§ 4.003, 4.006

Governs and allows contracts effecting real property

Property (Marital, Community, Separate)

TEX. FAM. CODE ch. 3

Governs

Property Inspection

Tex. Occ. Code ch. 1103

Licensing of inspectors

Real Estate License Act

TEX. OCC. CODE chs. 1101-1103

Regulation of brokers, inspectors and appraisals

Real Estate Settlement Procedures Act (RESPA)

12 U.S.C.A. §§ 2601-17

Requirements

Receivers

TEX. CIV. PRACT. & REM. CODE ch 64

Governs

Redemption Rights

TEX. TAX CODE § 34.21

TEX. PROP. CODE § 12.011

Procedures after tax foreclosure sale

Registered Mail

TEX. CIV. PRAC. & REM. CODE § 136.001

Notice compliance

Right of First Refusal - Condo Rejection Fee

TEX. PROP. CODE § 5.015

Fee for written refusal not allowed

Right of Rescission

12 C.F.R. § 226.23

Rights in transactions involving principal residences

Roadway Forming County Boundary

TEX. CIV. PRAC. & REM. CODE § 15.065

Jurisdiction

Securities Acts

TEX. REV. CIV. STAT. art. 581 §§ 1-39

Disclosures in real estate investments

Security Agreements

TEX. BUS. & COM. CODE ch. 9

Requirements

Separate Property

Tex. Const. art. XVI, § 15.

Definition

Sequestration

Tex. R. Civ. P. 705, 708

Governs

Soldiers and Sailors Civil Relief Act

See 50 U.S.C.A. App. §§ 501-91

Suspension of foreclosures

Shopping Center Stores, Open on Sundays

Tex. Bus. & Com. Code § 53.001

Application in commercial establishments

Statute of Frauds

TEX. BUS. & COM. CODE § 26.01

Requirements of written contract

Storm Water Permits

Federal Water Pollution Control Act (or Clean Water Act), 33 U.S.C.A. §§ 1251-1377

Regulation and permitting

Streets

TEX. CIV. PRAC. & REM. CODE §§ 16.005,16.015

Regulation of street closings

Subdivisions

TEX. LOC. GOV’T CODE ch. 232

 

Allows counties to establish requirements for platting

Sub-Metering

TEX. WATER CODE §§ 13.501-.506

Governs

Surety

TEX. CIV. PRAC. & REM. CODE ch. 43

Governs

Surveyor Liability

TEX. PRAC. & REM. CODE § 16.011

10 years to sue on survey

Surveying Requirements

TEX. OCC. CODE ch. 1071;

22 TEX. ADMIN. CODE chs. 661-665

Regulation

Survival of Representations and Warranties

TEX. CIV. PRAC. & REM. CODE § 16.070

Contractual limitations

Swimming Pools

TEX. HEALTH & SAFETY CODE ch. 757

Fencing requirements

Taxes

Tex. Const. art. VIII.

TEX. TAX CODE chs. 26, 31

Governs guidelines and regulations for property appraisal and assessment

Texas Department of Housing and Community

40 TEX. ADMIN. CODE ch. 19, subch. D

Regulates design of elderly housing

Title Insurance

TEX. INS. CODE tit. 11

Governs

Towing of Motor Vehicles

TEX OCC. CODE ch. 2308

Provisions impacting parking spaces and towing

Trademark and Trade Name Rights

TEX. BUS. & COM. CODE ch. 16

Governs

Trespass by Sign

TEX CIV. PRAC. & REM. CODE § 80.002

Regulates

Trespass to Try Title

TEX. PROP. CODE ch. 22

Procedures

Truth in Lending

15 U.S.C.A. § 1601- 67e

12 C.F.R. Part 226

Disclosures

Unauthorized Practice of Law

TEX. GOV’T CODE ch. 83

Regulates preparation of real estate documents

Underground and Aboveground Storage Tanks

30 TEX. ADMIN. CODE § 334.7 & 334.9

40 C.F.R. §§ 280.10-.116.

Criteria, regulation and disclosure

Usury

TEX. FIN. CODE § 305

12 U.S.C.A. §1735f-7

Parameters

Utility District Disclosures

TEX. WATER CODE § 49.452

Disclosures

Utility Sub-metering and Non-metering

TEX. WATER CODE §§ 13.501, 13.5031

Criteria for pass through by landlord

Variable Interest Rates

12 U.S.C.A. §§ 3801-06

Regulation

Venue

TEX. CIV. PRAC. & REM. CODE § 15.011 & 15.0115

Actions effecting real estate

Watercourse Forming County Boundary

TEX. PRAC. & REM. CODE § 15.065

Jurisdiction

Wetlands

33 U.S.C.A. § 1344

Regulation

Wills and Estates

TEX. EST. CODE § 257.001

Muniments of title

Zoning

Tex. Loc. Gov’t Code ch. 211

Authority of municipality to regulate