Paying for option period to purchase house benefits buyer
Q: Do I have to pay for an option period in order to buy a house? A: No, but if you pay the seller an option fee that you’ve agreed upon, you have the unrestricted right to terminate the contract for any reason if you give written notice to the seller during the option period. You can use the option period to perform an inspection and negotiate an amendment to the contract for any necessary repairs as a result of the inspection.
Q: We are about to remodel our house extensively. It is “unique,” and is showing its age. In fact, it was deemed function- ally obsolescent when we bought it. We have recently found out that it would be a similar cost to demo the house and start fresh. We plan to keep the foundation, expand it by some 10 percent over the current size, and enclose some outdoor area. We’ve owned the home for a few years and have a homestead exemption. How will the Montgomery County Appraisal District (MCAD) treat this? Will we keep the 10 percent limit? Or will this remodel allow them to completely reappraise and (substantially) increase our taxes? A: The appraisal district is required to assess the value based on fair market value. It will reappraise it sometime after it is complete, you will then have the right to contest it. There’s no magic here. When you build the Taj Mahal of Montgomery County, they have the right to tax it.
Q: My husband plays overseas basketball and we just recently married in June. He has minimal credit card debt that is paid off each month, but I have student loans, and a timeshare (that I have never used) with my ex from several years ago that I just recently found out he was not paying. I am trying to work with the time share mortgage company to remove my information from the account, but it is not working as planned. My question: Is my husband responsible for my debt in the state of Texas, if it was incurred before marriage? Also, if a lien or judgement was brought against me, would my husband and potentially our home be liable for repayment?
A: In general terms, Texas is a community property state, so both spouses are jointly and severally liable for debts. When you marry someone, you also marry their credit rating. Ideally, the timeshare issue should’ve been taken care of during the dissolution of the marriage, but it is never a simple issue. Judgement liens fall under the same rule, but Texas law is clear that a judgment lien does not attach to your homestead.
Q: I asked a question in the Oct. 25 Houston Chronicle edition regarding if I converted my detached garage into an apart- ment and rented out my home, would my homestead exemption still remain. I just read your answer in the newspaper. Wow, thank you so much. It is good to know that my exemption still remains.
A: We are always pleased to let our readers know our answers.
To send us a question visit www.AskGeorge.net and select the “Ask A Question” button. Our answers to questions do not contain legal advice. If you wish to obtain legal advice, you should consult your own attorney. George Stephens is the broker of Stephens Properties. Charles J. Jacobus, J.D. is Board Certified by the Texas Board of Legal Specialization in Residential and Commercial Real Estate Law.