Frequently Asked Questions About East Texas Real Estate

Real estate refers to land as well as any improvements and accessories that are permanently attached to that land.

Personal property generally is anything owned that is not permanently attached to real estate and can be moved. For example - cars, furniture, clothes, dishes, tractor, pets, etc. Make sure you go over with your agent what is staying and what is going, because some conveying items are specifically listed on the Texas contract, and others can be specifically excluded!

A real estate agent is a licensed professional who must be sponsored by a broker and works with clients on behalf of the broker.

A real estate broker is a licensed professional who has additional training that is responsible for all brokerage activities and any agents sponsored by the broker.

A real estate appraisal is an opinion of value of a property by a licensed appraiser based on current market conditions. An agent or brokers CMA report, is NOT an appraisal. Keep in mind, that appraisal number may not match what you're under contract for. If you are using a loan, that lender needs to know the value to make sure they are not fixing to lend more than what a property is worth.

A home inspection is an evaluation of a property's condition by a licensed inspector, usually conducted before a purchase is complete and during the buyer’s option period.

A mortgage is a loan used to purchase real estate.

A down payment is the initial amount made by the buyer to the lender when using a loan to purchase. It is typically a percentage of the total sale price that is determined by either credit worthiness, loan type, lender requirements, or choice if wanting to pay more than required.

Before purchasing a home or acreage in East Texas, it is important to understand how water moves across the property and whether flooding or poor drainage could affect your plans. A property may look dry during a showing but experience standing water, runoff, erosion, or flooding after heavy rainfall. Start by checking the property's location using the FEMA Flood Map Service Center and reviewing available flood hazard information. It is also helpful to visit the property after rainfall, if possible, and look for signs such as standing water, washed-out driveways, eroded soil, water stains, muddy areas, or drainage channels

Title insurance is a type of insurance that protects the buyer and lender against any potential defects in the title. There is actually an owner's policy and a lender's policy, and each protect different interests, and the coverage is subject to the policy's terms and exclusions.

A home warranty is a service contract that provides coverage for the repair or replacement of major systems and appliances in a home. This is a negotiable item and should be considered if a buyer would like that extra coverage.

A deed is a legal document that transfers ownership of real estate from one party to another.

A property lien is a legal claim on a property by a creditor, typically for unpaid debts.

A foreclosure is a legal process involving enforcement of a secured debt and and potentially a sale of the property by the lender, from a borrower who has defaulted on their mortgage payments.

This is an amount of days a buyer has after paying a fee to the seller so they can have inspections done and do their due diligence. Buyer then has the choice to move forward after due diligence or terminate if needed. This is a negotiable item.

A new survey is always a good idea to get on any property since past surveys may be outdated or even have errors on them. When appropriate, negotiate to add the boundary coverage. That extra coverage helps to protect buyers, should any disputes come forward in the future. This is also a negotiable item.

A seller's disclosure provides information about the property's known condition and other matters covered by the applicable disclosure form. It is based on the seller's knowledge and is not a substitute for an independent evaluation of the property. Buyers should review the disclosure carefully, ask questions about anything unclear, and arrange appropriate inspections within applicable contractual deadlines. Sellers should provide accurate information as required by Texas law and the applicable contract. Neither document should be treated as a guarantee that the property is free of every possible problem.

Sometimes a lender requires certain repairs to be completed before a home purchase can close. This can happen when an appraisal or property evaluation identifies conditions that do not meet the lender's requirements or the standards of the loan program. When repairs are required, the buyer and seller should review the lender's requirements promptly and determine who will be responsible for completing the work. The purchase contract may address repairs, but the seller is not automatically required to agree to every repair requested by the lender. Likewise, a buyer should not assume they can complete the work after closing without the lender's approval.

That is a negotiable amount that a seller asks for from any buyer to put down as a good faith deposit while they work at getting the property purchase completed. This amount is usually held at a title company or an attorney's office until closing, and is handled according to the contract. The contract determines the parties' rights to the funds if the transaction does not close.

Closing is the final step between two parties and a real estate transaction. This is when all documents are signed, and funds are disbursed from either a title company’s office or an attorney’s office.

About The Author

Hi! My name is Melissa Summers, and I am the Broker & Owner of Country Roots Realty. I love helping buyers or sellers with all of their real estate needs here in the Pineywoods of East Texas.