Real Property Law Flashcards
7 cards from real TX BAR practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Real Property Law flashcards as text
In Texas, real estate loans are typically secured by a deed of trust rather than a mortgage because:
Answer: A deed of trust allows for non-judicial foreclosure by a trustee, which is faster and less expensive
The deed of trust structure permits non-judicial foreclosure under Texas Property Code § 51.002, avoiding the delays and expense of a court proceeding.
A non-judicial foreclosure sale under a Texas deed of trust must take place:
Answer: On the first Tuesday of the month, following required notice and posting at the courthouse
Texas Property Code § 51.002 requires the trustee's sale to occur on the first Tuesday of the month at the county courthouse after proper advance notice is given to the debtor.
Which of the following liens CAN be enforced against a Texas homestead despite the constitutional homestead exemption?
Answer: A purchase money deed of trust used to acquire the homestead
The Texas homestead exemption expressly permits enforcement of purchase money liens, home equity loans, home improvement liens, and property tax liens.
After a non-judicial foreclosure sale under a Texas deed of trust, the former owner's right to redeem the property:
Answer: Does not exist — Texas provides no post-sale statutory right of redemption for most deed of trust foreclosures
Unlike many states, Texas generally does not provide borrowers a statutory right to redeem property after a non-judicial foreclosure sale under a deed of trust.
Under Texas Property Code § 51.003, a lender seeking a deficiency judgment after foreclosure may recover:
Answer: The difference between the outstanding debt and the fair market value of the property at the time of sale
Texas § 51.003 protects borrowers by limiting deficiency recovery to the debt minus the property's fair market value, preventing windfalls from depressed foreclosure sale prices.
Perfecting a mechanic's lien on a Texas residential homestead requires, among other things:
Answer: A written contract signed by both spouses and compliance with constitutional and statutory notice requirements
Texas constitutional mechanic's liens on homesteads require a written contract signed by both spouses (where applicable) and strict compliance with Texas Property Code notice and filing requirements.
The doctrine of equitable subrogation allows:
Answer: A party who pays off a senior lien to be substituted into the priority position of that satisfied lienor
Equitable subrogation substitutes the paying party into the priority position of the satisfied lienor, preventing unjust enrichment of intervening lienors.