Answered Questions

As submitted to the Houston Chronicle for publication

Answers Continued....

08/22/10

Question (TX): I listed a property on a Commercial Real Estate Agreement, Exclusive Right To Sell with a broker in Texas. I initialed the bottom of 5 of the 8 pages but never signed the final page 9. Is it considered binding without my signature?

Also, when I asked the broker to provide copies of the listing agreement to me later, not only was my signature missing on the last page, but a substitute page had been added with a different date by two weeks. It clearly had been whited-out!

Answer: No, it is not a binding contract without your signature as the principal on page 9.

Question (TX): When we moved into our home in October 2007 we were told we would not have to pay MUD taxes. There were also signs out in front of the subdivision that stated there were no MUD taxes. In addition, the sales assistants whom we assume were employees of the builder, told us there were no Mud taxes.

About a year after we lived here, Mud Taxes appeared on our tax statement. The MUD taxes sent our mortgage payment up $350. Is it legal for the builder to get a bond and require the residents to pay for it without our consent?

Answer: You’ve stated, in several places, that persons you assumed were employees of the builder, told you there were no MUD taxes. Also that signs on your subdivision before you moved in stated you would not have to pay MUD taxes.

We suggest that you thoroughly read the disclosures provided when you bought your property. State law requires a Municipal Utility District (“MUD”) must be disclosed when selling the property since it is a new taxing authority.

If you want a legal opinion about whether or not the builder complied with the Texas statutes that govern this type of development, we urge you to contact an attorney of your own choosing.

Question (TX): I have a contract with a real estate firm to sell my house. It has been on the market for nearly 4 months. We have a contract for 6 months on the listing. To date the house has not been shown one time. Can I terminate my contract with the real estate company before the contract expiration without risking breach of contract? Thank You.

Answer: No. You will most likely be breaching your listing contract. However, the key question here is whether or not you have “cause.”

We recommend that you first communicate with the agent with whom you have listed your property. Tell him or her that you are unhappy with no showings in four months. If you are not satisfied with that result, communicate with the Agent’s Broker, the one who is responsible for that agent’s authorized actions.

You may wish to read page 14 of the Texas Real Estate Commission’s (“TREC”) Legal and Ethics Mandatory Education requirements for licensees at http://www.trec.state.tx.us/pdf/education/legalandethicscourses/Ethics2010-CourseManual-Student.pdf. It states: “The agency relationship is highly personal. It requires continuing consent of the principal and the agent. At any time, the agency relationship may be terminated by either party; however, an early termination without cause might expose the terminating party to liability under the representation agreement.”

Also, you can always access the Texas Association of REALTORS® ("T.A.R.") at 1-800-873-9155. Ask to speak with someone regarding T.A.R.'s Ombudsman Program. We’re told this free program has met with great success.

Question (TX): We have owned a property on 2.2 acres for a year now. The house was originally built in 1986. On the side by our driveway is an empty 9 acres that is 2 feet higher than our driveway and house. This has caused driveway and foundation problems.

When they designed the driveway, they actually poured it at least 10 feet over on the other empty property causing an encroachment onto that property.

The empty 9 acres has been resold and noted with our driveway encroaching onto their property. If they begin to develop we could have a major drainage problem on our hands. Our engineer did not seem to notice a big part of our foundation problem was from the empty land draining into our driveway and house. We found it out when we had massive rains after we had already moved in.

Would this be covered under the Adverse Possession Law, since the driveway was established years ago and it is noted in the deed of the new owners?

Answer:  No, we don’t believe it would. The claim of Adverse Possession is established when circumstances are such that it is visible to others. In other words, others are or should be on notice that the possessor is asserting a claim of right to the property that is actual, open, notorious, exclusive, hostile, continuous, and uninterrupted for the applicable statutory period referred to in the Texas Civil Practice and Remedies Code as statutes of limitation. Note that the burden here is on the owner. 

Before proceeding any further, we advise you to seek legal counsel who can explain the details involved in making such a claim.

To send us a question visit www.AskGeorge.net and select the “Ask A Question” button. The answers to questions in this column do not contain legal advice. If you wish to obtain legal advice, you should consult your own attorney.  George Stephens is the broker of ERA Stephens Properties. Charles J. Jacobus, J.D. is Board Certified by the Texas Board of Legal Specialization in Residential and Commercial Real Estate Law.

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