To benefit from the innocent purchaser defense in Texas, a party must not have actual or constructive notice that another person may have an ownership claim to the property. Knowledge of the claim may result in divestment of the purchaser’s ownership interest. According to Texas Property Code § 13.001, actual notice means that the purchasers […]
Month: March 2022
Innocent or Bona Fide Purchaser Defense in Texas
The Latin phrase bona fide translates to “something of good faith, authentic, and genuine.” A Bona Fide purchaser, then, is someone who purchases property in good faith, assuming that things are as they seem, that the purchase is legitimate, and the title is unencumbered. If a third party presents a claim against the property, a […]
Franchise Agreements in Texas
A successful business may want to increase growth through franchising. This type of expansion has some real advantages, especially in Texas where economic activity has outpaced most other states in the last several years. Ideally, the franchise business model is a symbiotic relationship in which everyone benefits. In a franchise relationship, the franchisor allows the […]
Notification Requirements for Public Improvement Districts in Texas
A Public Improvement District, also known as a PID, is created by developers or communities to fund infrastructure or enhancements of neighborhoods. A PID may fund a new playground in a subdivision or a repair of its pool, for example, similar to the way a Homeowners’ Association functions. As of September 1, 2021, House Bill […]
What is Marketable Title in Texas?
While owning a home is a goal for many people, the road from finding a home to actually moving into that home is often not straightforward and simple. Even when the buyer and seller reach an agreement about sales price, contracts may fall through for any number of reasons. One of the reasons that a […]
Notice to Tenants About Properties in a Floodplain
Severe flooding in Texas in recent years has increased awareness about the importance of floodplains. Reflecting that concern, the 87th session of the Texas Legislature amended a law, effective January 1, 2022, about how and when residential tenants must receive notification that the rental property is at risk of flooding. Definition of a Flood Risk […]
Topics to Avoid During a Closing Argument in Texas
Closing arguments usually occur after reading the court’s charge to the jury and are often an attorney’s favorite part of the trial. Frequently critical to the trial’s verdict, there are two main purposes of a closing. The first is to remind the jurors of the relevant evidence and facts of the case, thereby providing proof […]
Letters of Credit in Texas
The primary purpose of a letter of credit is to diminish the possibility that a party does not repay a financial obligation. A letter of credit guarantees that a bank or some other financial institution will make an intermediary payment on behalf of the customer. The creditor is paid first, and then the customer repays […]
Separate Property vs. Community Property in Texas
The concept of community property originated with Spanish civil law and came to Texas via Mexico. Today, Texas is one of only nine community property states in the country. The term community property applies to the concept of combining separate assets, typically through marriage. The Texas Constitution and Texas Family Code provide definitions and procedures […]
Converting to a Texas Entity
Texas is a business-friendly state in a variety of ways, drawing businesses nationally and internationally. Whether the business is a corporation, an LLC, or a limited partnership, if that business chooses to become a Texas entity, it must follow certain guidelines and procedures established by the Texas Business Organizations Code (BOC). Filing a Plan of […]