Changes to Practice Notes

Chapter 1Ethics and Professional Conduct

§ 1.13Corporate Transparency Act

This is a new section. Previous section 1.13 renumbered to 1.14.

§ 1.14Additional Resources

Added numerous resources.

Chapter 2Laws Affecting Real Estate

§ 2.2Abstracts of Judgment

Added citation to Tex. Prop. Code § 52.022.

Added information regarding fraudulent filings.

§ 2.4Acknowledgments

Added citation to Tex. Civ. Prac. & Rem. Code §§ 121.001–.016.

§ 2.5Ad Valorem Taxes

Added citation to Tex. Tax Code § 11.18(d).

Added discussions involving Tex. Tax Code chs. 23, 34, 41.

Added citation to Tex. Tax Code § 32.01.

§ 2.10Agricultural Liens

Added discussion of and citation to Tex. Prop. Code § 70.4045.

Added citation to Tex. Prop. Code § 70.405.

§ 2.16Annexation

Added citation to Tex. Loc. Gov’t Code § 43.005 and discussion of Tex. Loc. Gov’t Code §§ 42.105, 42.151, 42.155.

§ 2.19Arbitration

Updated citations to statutory chapters with specific sections of the Texas Business and  Commerce Code.

§ 2.20Architects

Added discussion of statute of repose for claims against an architect.

§ 2.23Assumed Names

Added discussion of penalties and sanctions for failure to comply with the Assumed Business or Professional Name Act.

§ 2.34Business Organizations Code

Added discussion of changes made by the 2023 legislative sessions.

§ 2.37Cemeteries

Changed “platting” to “dedication.”

§ 2.39Certification of Trust

Added discussion of Tex. Prop. Code § 114.087.

§ 2.45Community Homes; Group Homes

This section has been substantially rewritten.

§ 2.46Community Property with Right of Survivorship

Added discussion of Tex. Est. Code § 101.002.

§ 2.47Condemnation and Eminent Domain

Updated URL for Texas Landowner’s Bill of Rights.

§ 2.51Conspicuous Text

Updated citations for disclosures required in rental-purchase agreements and notices relating to contracts for deed.

Added entry for seller’s disclosure of potential annexation.

§ 2.53Construction Contracts

Added discussion of Tex. Ins. Code § 151.102.

§ 2.54Construction Liability Claims on Public Projects

Removed citation to bill legislation, leaving only the codified statute.

§ 2.55Construction Payment Bond Claims

Added citation to Tex. Ins. Code §§ 3503.051–.057.

§ 2.56Consumer Laws

Expanded entry on the Real Estate License Act and added citation to Tex. Occ. Code chs. 1102 and 1103.

Updated citation for entry on the Service Contract Regulatory Act.

§ 2.59Corporate Transparency Act

This is a new section. Renumbered subsequent sections.

§ 2.60Corporations

Added mention of Tex. Bus. Orgs. Code ch 3.

§ 2.70Disclosures and Notices

For entry on seller’s written notice of condition of property, updated 2019 information to reflect 2023 updates.

For entry on disclosures if property is located in a water or utility district, added citation to Tex. Water Code § 49.4521.

§ 2.86Environmental Laws

Added citation to Tex. Loc. Gov’t Code §§ 9.0015, 9.0045.

§ 2.91Eviction

Added discussion of Tex. Prop. Code §1.004.

§ 2.110Foreign Entities

Added reference to Tex. Bus. Orgs. Code ch. 9.

§ 2.111Foreign Ownership of Real Property

Replaced “foreigners” with “foreign individuals and entities.”

§ 2.123Handguns

Added citation to Tex. Penal Code § 46.02.

§ 2.137Implied Title Covenants

Added citation to Tex. Prop. Code § 5.024.

§ 2.138Indemnity Agreements

Added cross-reference to section 2.53 in this chapter.

§ 2.149Landowner’s Bill of Rights

Updated URL to Landowner’s Bill of Rights.

§ 2.160Lis Pendens

Added citation to Tex. Prop. Code § 12.007.

§ 2.161Loan Documents

Added discussion of Tex. Bus. & Com. Code § 26.02.

§ 2.174Mold Assessors and Remediators

Added discussion of Tex. Occ. Code ch. 1958.

§ 2.186Notaries Public

Added discussion of Texas Gov’t Code ch. 406.

§ 2.193Partition

Added discussion of Tex. Prop. Code ch 23A.

§ 2.202Property Inspection

Added discussion of Tex. Occ. Code § 1102.001(10).

§ 2.206Quitclaim Deeds

Added discussion of Tex. Civ. Prac. & Rem. Code § 16.025.

§ 2.217Release of Lien by Attorney or Others

Added discussion of Tex. Fin. Code § 343.108.

§ 2.264Transfer on Death Deed

Added discussion of Texas Transfer Toolkit.

§ 2.268Truth in Lending

Updated BCFP to CFPB.

§ 2.269Unauthorized Preparation of Real Estate Documents

Added citation to Tex. Occ. Code ch. 954, § 1702.324(a).

§ 2.277Uniform Unincorporated Nonprofit Association Act

Added citation to Tex. Bus. Orgs. Code § 252.005.

Chapter 3Preparation, Execution, Proof, and Recording of Documents

§ 3.12:5Online Notarization

Updated list of items an online notary public needs to record under heading “Recordkeeping and Public Information.”

Chapter 4Sales Contracts and Transaction Guide

§ 4.1Letter of Intent

This is a new section. Previous section 4.1 information was incorporated into section 4.2.

§ 4.2Real Estate Sales Contract

Discussion from previous section 4.1 has been moved here and expanded upon.

§ 4.3Introductory Paragraph: Offer and Acceptance

Added discussion of “effective date” and that a party must sign the contract and the title company must receive the contract and earnest money.

§ 4.4:1Purchase and Sale Agreement

Added cross-reference to section 3.7 in this manual.

§ 4.4:3Payment of Purchase Price

Added clarifying language throughout.

§ 4.5:3Application of Earnest Money

Updated subsection to reflect changes in form 4-2 in this chapter.

§ 4.6:3Delivery of Title Commitment, Survey, and UCC Search

Added sentence about party responsible for these costs being negotiable.

§ 4.6:4Title Objections

Added discussion about seller electing to cure buyer’s objections.

§ 4.6:5Review of Title Commitment

Updated subsection to reflect changes in form 4-2 in this chapter.

§ 4.6:6Review of Survey

Added discussion of what to do if legal description does not match what is in the contract.

§ 4.8Representations

Added discussion involving numerous additional representations.

Added detailed discussion of numerous sections of exhibit B of form 4-2 in this chapter.

§ 4.10Termination

This section has been substantially rewritten and expanded.

§ 4.11Closing

Added clarifying language throughout section.

Added cross-reference to and discussion of section 25.9:1 in this manual.

§ 4.13:2Signatures

This is a new subsection. Previous subsection 4.13:2 renumbered to 4.13:3.

§ 4.13:3Exhibits

Added sentence involving list of seller’s records being revised based on the specific transaction.

§ 4.14Closing Functions

Added specific language involving title company closing transaction.

§ 4.14:2Prorations and Deposits

Added clarifying language throughout subsection.

§ 4.16Additional Resources

Added reference to recent CLE article on Texas Supreme Court updates related to real estate contracts.

Chapter 5Deeds, Bills of Sale, and Other Transfers

§ 5.1:1Statutory Requirements

Updated “corporation” to “domestic entity.”

Added sentence about not including social security number in recording.

Added citation to Tex. Prop. Code § 11.008(b), (c).

§ 5.12:5Strips and Gores

Added citation to Strait v. Savannah Court Partnership.

Chapter 7Letters of Credit

§ 7.10:4Force Majeure Issues

Updated URLs in this subsection.

Updated citation to International Chamber of Commerce’s guidance on impact of COVID-19 on trade finance transactions issued subject to ICC rules.

Chapter 8Deeds of Trust

§ 8.1Use and Effect of Deed of Trust

This section has been substantially rewritten.

Added citations to Flag-Redfern Oil Co. v. Humble Exploration Co. and Leighton v. Leighton.

Added cross-reference to chapter 14 in this manual.

Added citation to Tex. Prop. Code § 51.0074.

§ 8.1:2Precautions for Deed of Trust

Added cross-reference to chapter 11 in this manual.

Added reference to loan exceeding $50,000.

§ 8.2:1Parties

Added discussion that parties to a deed of trust must be properly identified.

Added discussion of lenders usually appointing individuals to act as trustees.

Added cross-reference to sections 14.2:4 through 14.2:6 in this manual.

§ 8.2:3Property Description

Added discussion of accurate property descriptions.

§ 8.2:4Prior or Superior Liens

Retitled subsection.

Cleaned up “prior” versus “superior” throughout chapter.

Added discussion of lien priority. Included cross-reference to section 8.3 in this chapter.

§ 8.2:5Other Exceptions to Conveyance and Warranty

This subsection has been substantially rewritten.

§ 8.3Use and Effect of Subordinate Deed of Trust

Added citation to Tex. Tax Code §§ 32.05–.065.

Added cross-references to section 2.5 in this manual and chapters 20 and 21.

Added discussion of accepting a subordinate lien as part payment.

§ 8.4Precautions for Subordinate Deed of Trust

Added discussion regarding prohibitions against subordinate liens.

Added paragraph about defaults and subordinate liens.

§ 8.8Use of Leasehold Deed of Trust

Clarified discussion on landlord’s consent in form 8-11 in this chapter.

§ 8.9Use of Consent to Leasehold Deed of Trust

Added reference to form 8-11 in this chapter.

§ 8.10:2Partial Release

Added clarification about clauses mentioned and their locations in form 8-7 in this chapter.

Added sentence about conditions being satisfied before partial release.

§ 8.10:10Partial Recourse

Retitled subsection.

§ 8.12Additional Resources

Added entries for three recent CLE articles.

Chapter 9Security Agreements

§ 9.3:3Collateral Categories

Updated quote of Tex. Bus. & Com. Code § 9.102(a)(46).

Chapter 10Ancillary Loan Documents

§ 10.13General Considerations for Guaranty

Updated “corporation” to “domestic entity.”

Chapter 11Home Equity Loan Documents

Updated citations throughout chapter.

§ 11.19:2Truth in Lending Act

Added reference to owner and owner’s spouse.

Chapter 14Foreclosure Documents

Added cross-references throughout chapter to practice notes and forms in both this manual and the Texas Foreclosure Manual.

§ 14.1General Considerations

Added discussion about the Texas Foreclosure Manual.

§ 14.1:1Deed of Trust as Contract

This is a new subsection.

§ 14.1:2Contract Between Parties

This is a new subsection.

§ 14.1:3Power of Sale

This is a new subsection.

§ 14.1:4Contract Rights Restricted by Statute

This is a new subsection.

§ 14.2Real Estate Foreclosures

Subsections 14.2:1 through 14.2:8 and 14.2:10 are new. Previous subsections have been renumbered accordingly.

§ 14.2:1Demand for Payment

This is a new subsection.

§ 14.2:2Notice of Intent to Accelerate

This is a new subsection.

§ 14.2:3Notice of Acceleration

This is a new subsection.

§ 14.2:4Trustees and Substitute Trustees

This is a new subsection.

§ 14.2:5Appointment of Trustee

This is a new subsection.

§ 14.2:6Recording an Appointment

This is a new subsection.

§ 14.2:7Notice of Nonjudicial Foreclosure Sale

This is a new subsection.

§ 14.2:8Contractual Requirements of Notice of Sale

This is a new subsection.

§ 14.2:9Statutory Requirements to Post, File, and Serve (Mail) Notice of Sale

This subsection (previously subsection 14.2:2) has been retitled and substantially rewritten.

§ 14.2:10Contents of Notice of Sale

This is a new subsection.

§ 14.2:11Suit for Deficiency–Real Property

This subsection (previously subsection 14.2:3) has been substantially rewritten.

§ 14.2:12Residential Property–Nonjudicial Foreclosure Sales

This subsection (previously subsection 14.2:4) has been retitled and substantially rewritten.

§ 14.2:14Beachfront Property

Added cross-reference in this subsection (previously subsection 14.2:6) to form 14-14 in this chapter.

§ 14.2:16Deed in Lieu of Foreclosure

This subsection (previously subsection 14.2:8) has been substantially rewritten.

§ 14.3:1As Part of Real Estate Foreclosure

This subsection has been retitled.

§ 14.3:3Rules for Foreclosure

Added discussion of Tex. Bus. & Com. Code § 9.610(e).

§ 14.4:1Collecting Necessary Documents

This is a new subsection.

§ 14.4:2Foreclosure Calendar and Checklist

This is a new subsubsection. Renumbered subsequent subsections.

§ 14.4:3Foreclosure Documents Applicable to Real Property and Personal Property

This subsection (previously subsection 14.4:1) has been substantially rewritten.

§ 14.12Texas Foreclosure Manual Contents

This is essentially a new section. Renumbered previous section 14.12 to 14.13.

§ 14.13Additional Resources

Updated one additional resource.

Chapter 16Water Rights Conveyancing Documents

§ 16.1Introduction

Added clarification on TCEQ’s authority and that its power has been delegated by the legislature.

Updated figures for groundwater conservation districts.

§ 16.3:2GCD Permitting

Added discussion of pumping rights granted by the EAA.

§ 16.66:7Appurtenant Land

Added parenthetical for Herrmann v. Lindsey.

§ 16.91Produced Water

Added citations to Dyegard Land Partnership v. Hoover, Moser v. U.S. Steel Corp., Robinson v. Robbins Petroleum Corp., Acker v. Guinn, and Cactus Water Services, LLC v. COG Operating, LLC.

Chapter 23Restrictive Covenants and Property Owners’ Associations

§ 23.2:2Enforcement of Covenants and Rules and Collection of Assessments

Added discussion of what a property owners’ association must do regarding notice before filing an assessment lien.

§ 23.3:14Enforcement and Fine Policy

This is a new subsection.

Chapter 24Condominium Documents

§ 24.7Termination of Condominium and Sale of Resultant Property

This is a new section. Renumbered previous section 24.7 to 24.8.

Chapter 25Leases

§ 25.5:2Right to Terminate Residential Leases in Certain Circumstances

Updated “sexual assault” to “certain sexual offenses.”

§ 25.13Common Issues–Renewable Energy–Wind and Solar Leases

This is a new section. Renumbered previous section 25.13 to 25.14.

Changes to Forms—2024

Chapter 1Ethics and Professional Conduct

Form 1-17Additional Clauses for Engagement Letters

This is a new form, with clauses addressing the Corporate Transparency Act.

Chapter 4Sales Contracts and Transaction Guide

Form 4-2Real Estate Sales Contract

Expanded section D.2. regarding destruction of seller’s records.

Added optional provision about third-party reports.

Condensed section G.

Added cross-references to other forms in this manual.

Form 4-23Seller’s Disclosure of Property Condition

Added fuel gas piping, black iron pipe, copper, and corrugated stainless steel tubing to list of property conditions.

Form 4-33Letter of Intent

Removed differentiation between “initial” and “additional” earnest money.

Reorganized items 2 through 5 in exhibit A’s “Deadlines and Closing Date” section.

Chapter 11Home Equity Loan Documents

Form 11-5Home Equity Compliance Certificate and Agreement

Updated section B.3. to include exclusions.

Chapter 23Restrictive Covenants and Property Owners’ Associations

Form 23-5Rules of Property Owners’ Association

Removed sections involving penalties and enforcement procedures. Added reference to new form 23-6 in this chapter for this information.

Form 23-6Enforcement and Fine Policy for Property Owners’ Association

This is a new form. Renumbered subsequent forms.

Form 23-18Notice of Enforcement Action and Attorney’s Fees

Updated citation to Servicemembers Civil Relief Act (50 U.S.C. §§ 3901–4043).

Chapter 24Condominium Documents

Form 24-19Supplemental Checklist and Commentary

This is a new form.

Form 24-20Notice of Special Meeting of Members on Amendments to Condominium Documents

This is a new form.

Form 24-21Member’s Proxy to Vote on Amendments to Condominium Documents

This is a new form.

Form 24-22Amendments to Condominium Declaration and Bylaws

This is a new form.

Form 24-23Explanation of Amendments

This is a new form.

Form 24-24Minutes of Special Meeting of Members on Amendments to Condominium Documents

This is a new form.

Form 24-25Certificate and Voting Roll: Amendments to Condominium Documents

This is a new form.

Form 24-26Real Estate Sales Contract: Condominium Regime Termination and Sale of Property

This is a new form.

Form 24-27Condominium Termination Agreement

This is a new form.

Form 24-28Notice of Special Meeting of Members on Condominium Termination Agreement and Real Estate Sales Contract

This is a new form.

Form 24-29Explanation of Proposed Condominium Termination Agreement and Ratification of Real Estate Sales Contract

This is a new form.

Form 24-30Member’s Proxy to Vote on Condominium Termination Agreement and Real Estate Sales Contract

This is a new form.

Form 24-31Certificate and Voting Roll: Condominium Termination and Sale of Property

This is a new form.

Form 24-32Minutes of Special Meeting of Members on Approval of Condominium Termination

This is a new form.

Chapter 26Miscellaneous Documents

Form 26-44Surface Use and Drill Site Agreement

This is a new form.