Sale of rental home doesn’t terminate tenant’s lease
Q : If I sell my rent house, does the buyer have to recognize the rights of the tenant, or does the lease terminate?
A : It does not terminate the lease. You agreed to give the tenant possession for a certain period of time, so you must honor the agreement. Any buyer would see that a tenant is in the premises, and the buyer is on notice that the tenant has the exclusive right of possession.
Q : My homeowners association is spending money without the members’ approval. Who can make these decisions and spend our money without the members knowing about it?
A : It depends entirely on what the restrictions and bylaws of the homeowners association say. The board of directors generally has the authority to manage the property to a certain degree without taking every issue to a homeowner’s vote. Read them both carefully. You also can try to be a director.
Q : I received my closing papers on my new house, but they are confusing. It looks like I conveyed my house to my lender. Can that be right?
A : You should have a deed that conveys the property to you. There is another document called a deed of trust, which, under Texas law, is a mortgage. It reads kind of like a deed, conveying an interest to a trustee, but it is merely conveying a lien interest to secure the note you signed for the loan. It looks kind of confusing, but these are standard documents in Texas.
Q : My mother died, and we discovered that she conveyed a life interest in her home to a friend. After that friend dies, the title goes to my mother’s heirs. The friend has called and said they want out of the property and release their interest to the heirs. What kind of release would she sign? It sounds very odd to me.
A : It is odd. A life estate interest is a real property interest for the life of the owner, with a remainder interest conveyed to the heirs. It seems more logical, that the life estate holder conveys their interest to you by warranty deed. You will want a title policy confirming the transaction, or at least do a quick search of the title to be sure she hasn’t tried to encumber it somehow. You also will want to check and be sure the taxes have been paid for prior years.
To send a question visit and select the “Ask A Question” button. 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.