PROPERTY LAW & DESCRIPTIONS — TX RE SALESPERSON CHEAT SHEET

---

REAL VS. PERSONAL PROPERTY & FIXTURES

|---|---|---|

Fixture Test (3-Part)

Annexation — physically attached?

Adaptation — custom-fitted for property?

Intent — parties intend it as part of realty?

⚠️ KEY: Written contract controls. If contract specifies item stays/goes, that governs. Built-in items = fixtures. ---

BUNDLE OF RIGHTS & GOVERNMENT LIMITS

Ownership Bundle:

• Possession | Control | Enjoyment | Exclusion | Disposition

Government Restrictions (PETE):

• P = Police power (zoning, codes)

• E = Eminent domain (taking + compensation)

• T = Taxation (property taxes)

• E = Escheat (revert to state if no heirs)

---

TEXAS-SPECIFIC: HOMESTEAD, WATER, MINERALS

|---|---| ---

FORMS OF OWNERSHIP

|---|---|---|---|---|

Joint Tenancy Four Unities

TTIP: Time | Title | Interest (equal) | Possession (equal) ⚠️ JTWROS must be expressly stated in deed. Missing language = TIC. ---

TITLE CONCEPTS

|---|---|---| ---

TITLE INSURANCE (TX)

|---|---|---|---| ✓ Covers past defects (forgery, missing heirs, recording errors, prior fraud) ✗ Does NOT cover future events or exceptions listed on policy ⚠️ TX premiums set by TDI — all companies charge same rate. ---

RECORDING & NOTICE

Race-Notice Statute (TX):

• Subsequent buyer without notice who records first = prevails

• Recording = constructive notice to world

• Actual notice = direct knowledge

• Inquiry notice = facts that prompt reasonable investigation

⚠️ Always record promptly. Unrecorded deed valid between parties but vulnerable to next buyer who records. ---

LEGAL DESCRIPTIONS (3 METHODS)

Method 1: METES & BOUNDS

• When: Irregular tracts, rural, historic grants (East TX, Spanish grants)

• How: Point of Beginning (POB) → bearing + distance around each boundary → back to POB

• Bearing format: N/S + degrees + E/W (e.g., "N 45° 30' E, 150 ft")

• Monument: Fixed reference point (iron pin, tree, river)

• TX specific: Varas (Spanish unit) ≈ 2.78 ft; 5,645.4 sq. varas = 1 acre

Method 2: RECTANGULAR SURVEY (Government Survey)

• When: Large rural tracts (national context—TX retained its lands)

|---|---|

Category	Definition	Transfers in Sale?
Real Property	Land + permanent attachments	✓ Yes (default)
Personal Property	Movable items	✗ No (default)
Fixtures	Personal property affixed to land	✓ Yes (if fixture)
Concept	TX Rule
Homestead	Urban: ≤10 acres; Rural: ≤200 family/100 single. Auto protection at primary residence; exempt from most creditor claims
Water Rights	Prior appropriation ("first in time, first in right"). Surface = state-owned. Groundwater = Rule of Capture (landowner can pump, even from neighbor)
Mineral Rights	Severable from surface. If previously severed, NOT included in deed unless expressly stated. TREC contract default ≠ minerals
Form	Transferability	Survivorship	Consent Required?	Default?
Sole (Severalty)	Full	N/A	No	—
Tenancy in Common	Free, undivided share	No → heirs/devisees	No	✓ (2+ people)
JTWROS	Requires severance first	Yes → survivors	Implicit unities	Must be express
Community Property	Both spouses must sign	By will (½ each)	Spouse consent	✓ (TX default for marital)
Term	Meaning	Issue?
Title	Legal right to possess & control property	Not the deed itself
Marketable	Free from undisclosed defects; buyer would accept	Breach if seller can't deliver
Clear	No liens or clouds	Subset of marketable
Chain of Title	Recorded sequence of ownership	Break = title defect
Cloud	Claim reducing marketability	Cleared by quiet title action
Policy	Covers	Amount	When
Owner's (T-1)	Buyer	Purchase price	One-time premium
Mortgagee's (T-2)	Lender	Loan balance	Required by lender
Unit	Size
Township	6 × 6 miles (36 sq. mi.)
Section	1 × 1 mile (640 acres)
¼ Section	160 acres
¼–¼ Section	40 acres

- Section 1 = NE corner; Section 36 = SE corner (boustrophedon pattern)

Method 3: LOT & BLOCK (Recorded Plat)

• When: Subdivisions, urban/suburban (most common in developed TX)

• Format: "Lot 5, Block 2, Oak Creek Estates, City of Austin, Travis County, TX, per plat Volume 88, Page 14, Plat Records of Travis County, TX"

• Approval: County Commissioners Court (unincorporated); City (incorporated)

--- ##