How Are Homebuyers Legally Protected in Texas?

 Posted on September 13,2024 in Real Estate Law

Residential real estate transactions can be complex, especially for homebuyers. Purchasing a house may be an exciting and important occasion, but it also comes with various challenges. Some of these stem from the fact that there are several parties involved in the transaction. Aside from the buyer, there is a seller, a lender, and sometimes a real estate broker and mortgage broker. In some cases, these parties may try to take advantage of buyers, particularly first-time homebuyers.

Whether you are buying a home as an investment or a residence, you are entitled to certain legal protections that can help safeguard your assets and shield you from exploitation. The best protection, however, is hiring a Texas residential real estate attorney who can ensure you are defended by the following legal safeguards.

Fair Housing Laws

Fair housing laws protect homebuyers from certain behaviors such as:

• Predatory lending: Banks and other lenders are prohibited from using deceptive practices to raise interest rates or other borrowing costs.
• Discrimination: Sellers and lenders are forbidden from discriminating against a potential buyer or borrower due to their protected class status.
• Loan denial: Lenders are not allowed to change the criteria for loan approval based on anything other than economic factors.

Seller Disclosure Requirements

Sellers are prohibited by law from withholding relevant information from buyers, especially if it would affect a buyer’s decision to purchase the property. They must provide buyers with a seller’s disclosure notice, which contains important details about the property such as:

• Any defects or malfunctions with the house
• Whether the property includes certain installations like septic systems, water lines, gas fixtures, smoke detectors, and more
• Whether the house contains illegal additions
• Homeowners’ Association fees
• Any lawsuits involving the property
• Anything about the property that may affect the health of the residents

Option Period

The buyer has a right to an option period, which is a time window in which he or she can walk away from the deal. This typically ranges between one to 10 days and is written into the real estate contract. During this time, the buyer may have the property inspected to detect any defects or issues that might impact his or her decision to purchase it.

An option period includes a fee that the buyer must pay, though it can be nominal. The main purpose of the option period is to forestall a legal dispute after the sale over newly discovered problems with the property.

Contact a Hood County, TX Residential Real Estate Lawyer

Texas law offers certain protections for homebuyers, but that does not mean these protections will be honored by the other parties. That is why a Tarrant County, TX residential real estate attorney should be involved as early in the transaction as possible. The attorneys at Cain & Kiel Law will use our extensive experience and knowledge of real estate law to protect your assets and interests.  Speak with a skilled attorney by calling 817-645-1717 today.