Texas real estate

Types of Office Leases

There are several types of office leases that are available to you as a tenant and it is good to have a fundamental understanding of what they are and how they work. You will hear the following terms when it comes to lease negotiations.

Office lease types are as follows:

Full service lease- this lease includes all of your janitorial costs, electric and common area maintenance costs. You may see the letters “FS” next the to the lease rate when you are leasing an office.

Net Lease - this is a lease whereby the tenant pays a significant portion of the property taxes and insurance or operating expenses of the property incurred by the owner or the landlord of the office property in Austin. You as a tenant will also pay for your own electric and other utilities.

Net Net Net Lease - also known commonly as a triple net lease. This is a lease whereby the tenant pays for their pro-rated share of operating expenses that are incurred by the property owner or the landlord. These expenses are passed thru to you as the tenant, you will also hear the language base year expenses which means the first year you are occupying the office space or the “base year”. Sometimes your broker can help you put a cap on the incremental increases, rest assured property taxes usually go up every year. Also it is important to note if the taxes go down, the savings should be transferred to you as the tenant.

Modified Gross- this lease is a gross lease like a full service lease where the operating expenses are incorporated into the rate but you will most likely pay for your own electricity.

Lease escalations- rate increases or bumps per year are standard with most leases. You should expect increases per year. You may also hear the lease referred to as a graduated lease.

Index Leases - these leases are tied to the consumer price index which will move upward or downward in conjunction with the consumer price index. Percentage Leases- a percentage lease is a lease that the tenant pays on that is tied to the tenant’s sales revenues. You will find this type of lease used in retail property for lease. The percentage is negotiable and linked to your gross sales. An example would be 5% of all sales over $200,000 per year. Sometimes you will have a percentage lease linked to your gross margins or net profits. This lease allows the tenant to get into a retail space at a lower rate thereby allowing the landlord to share in your profits as you move forward.

By: Steve J Shire

TREC or Texas Real Estate Commission is a government body that was created in 1949 to administer four specific laws such as real estate license act, real estate inspector act, residential service company act and Texas timeshare act.

TREC regulates activities of real estate brokers, salespeople, inspectors, residential service companies, timeshare developers and education providers for real estate and inspection courses. Main purpose of TREC is to protect legal rights of citizens of Texas and provide them with honest, trustworthy and competent real estate service. The commission reviews programs dealing with education providers for real estate and inspection courses. It tries to identify and regulate errors and drawbacks present in it.

TREC has made it mandatory for real estate brokers and salespersons to maintain specified levels of education in order to hold a valid license to work as a real estate agent. Provisions of real estate license act and rules of Texas real estate commission are binding on all real estate agents and professionals in order to provide customers with a competent and honest service. TREC also gives licenses to real estate inspectors, agents, residential service companies and real estate schools. This commission also does registration of timeshare properties.

Texas Real Estate Commission has statutory relations with three state entities namely, real estate center at Texas A&M University, Texas department of savings and mortgage lending and Texas appraiser licensing and certification board. The commission has partnership with Texas A&M University’s real estate center for conducting research along with some education projects. It also appoints two members to mortgage broker advisory committee of Department of savings and mortgage lending. Issues relating to real estate licensees and mortgage brokers are resolved by cooperating with this agency. Commission also has signed a memorandum of understanding with Texas appraiser licensing and certification board under which it provides administrative support to them, which is approved by their governing bodies.

By: Thomas Morva

While watching the news reports of Hurricane Ike on Galveston and its surrounding smaller towns and cities such as Texas City, most people are unaware of what it all means to the economies of the area. Sure it is a disaster and many people do incur losses as the result of it, but for some who position themselves strategically, it is a financial windfall.

Distressed Properties

Take for instance, the Texas City real estate market and distressed properties as an example. Damaged homes and businesses just don’t go away and in the vast majority of the cases they are restored. By who? Some by their owners and many still be real estate investors who purchase bargain, distressed properties and make their profits by rehabilitating them and putting them back on the market.

Shortage of Rental Units

Rental properties in Texas City are now in very short supply and with the influx of construction and relief personal those that are being rented are fetching premium rental fees. This means that anyone who can rehabilitate and get a rental property on the market can expect it to be occupied immediately.

Building Supply Shortages

However; for anyone considering breaking into this new and lucrative market, there are a number of considerations that need to be taken into account. For instance, building material shortages such as roofing materials and Sheetrock are a reality that have to be contended with. In fact, many people in New Orleans, post Katrina, were left with no option other then to drive out of state and have their building materials trucked in.

A Labor Shortage

Also, if you have never experienced a labor shortage then you will soon find out what one is like in this disaster area. Once again, you can refer to New Orleans, post Katrina, where wages on construction and demolition workers doubled in a year. This means that in order to keep qualified personnel on a job you have to give them raises sometimes once a month to keep up with the local rate, lest they be lured away to another project where the pay is better and they are giving raises to keep up.

By: Daniel Mummski

I got my start in the real estate business about four years ago – when the market in Austin, Texas could be described as “bad,” “on the decline,” “busting,” or worse!!! We preferred to describe it as a “buyer’s market.” This way, it made the real estate buyer feel privileged – not foolish. At that time, when I was lucky enough to find someone willing to risk the “buyer’s market,” we’d search high and low for weeks to find the perfect home – and then the question would come, “How low do you think we should come in?”

More often than not, in a buyer’s market, we’d start at around 90-95% of the seller’s asking price. If we offered 95%, usually it was taken. If we offered 90% – we’d usually go back and forth a bit until we landed at, you guessed it, 95%. This was, of course, as long as the seller didn’t have their home listed ridiculously above or below the Fair Market Value.

Well…the market is shifting, and I’m lucky enough to have sold quite a few homes to buyers willing to risk the “volatile,” “buyer’s market,” that actually turned out to be a legitimate “opportunistic market.” Now I’m in the position to have helped quite a few people buy low and sell high – and I’m receiving quite a few referrals in the Austin Texas Real Estate market. One big thing I’ve seen change is the way we come in with an offer.

In the Austin Texas Real Estate market, we’re in the funny position of just coming out of a bad, or “buyer’s market” and not quite into a full-blown “seller’s market.” The best way to describe our market, and the way we approach it, is “fair.” Seller’s & their Real Estate Agents understand that, if the home is priced correctly, it will sell in a reasonably short period of time.

Because of this, the general rule of “let’s come in 90-95% of their asking price” no longer applies. If a home is priced correctly, and the buyer offers 90% of the asking price, more than likely the seller will tell them to either resubmit, or go away. Likewise, if the buyer offers 95% of the asking price, the seller will likely come off the price slightly, but with the message that “we’re not moving much more than this.”

The bottom line is that a transitional market is a “fair market.” Nothing is more important in a fair market than a home’s true Fair Market Value. Because of this, it’s more important than ever to make sure that your real estate agent will complete a thorough Comparative Market Analysis. Once that is done, and with the right real estate agent’s presentation skills, you might not have to negotiate – merely make one offer that is accepted.

By: Eric Bramlett

Texas is filled with big spenders and big winners, as well as big losers. The recent real-estate boom in Texas is currently experiencing its inevitable crash. The people who, a few years back, bit off more than they could chew, are flooding the Texas real estate market with huge bargains. Texas foreclosure sales are as abundant as ever, and now is the true real estate boom for those looking for an incredible real estate deal.

Foreclosure occurs when a home or landowner fails to re-pay their loans. This happens for a number of reasons, and happens most often in places of great wealth such as Texas. When an oil billionaire spends millions of dollars on a ranch, and finds his well has run dry, that same ranch might be sold for a fraction of its value to someone keeping a step ahead of the game. White-collar criminals, tax evaders and the oil-rich make excellent targets for foreclosure sales. Just a little sloppy bookkeeping and some of Texas’ greatest pieces of property are auctioned off at incredibly cheap prices.

Because the lenders are the sellers in the case of foreclosure sales, the prices can remain very low. It is always in the best interest of the lenders to get this property off of their hands as quickly as possible, and with as little effort. Foreclosure homes will have no brand new rollout sod, no fresh flowers on the table or smell of baking cookies, nor does the buyer have to pay for these superficial perks. Foreclosure homes are sold as the buyer left them, which is partly why they are able to be sold for so little. Banks are good at lending money, but want nothing to do with the real estate market; they’ll leave that part to you.

It is not a coincidence, though, that when one rich and well-connected Texan loses a property, another rich and well-connected Texan gains a property. These foreclosure auctions are kept highly secretive, and are attended by an elite few. Real estate moguls and intelligent entrepreneurs hire lawyers and full-time staff to research foreclosures, and have excellent ways of finding it. It is only recently that businesses have made this type of information available to the general public at affordable prices.

Even though foreclosure auctions are technically and legally required to be made public, too many loopholes make these notification laws something of a joke. Public notices are mysteriously lost or appear mere hours before the auction takes place. There was a time when it was not uncommon for there to be only one “bidder” at a Texas foreclosure real estate auction, and the price long set. Thanks to recent foreclosure exposure, these underhanded deals are not nearly as common.

But while foreclosure auctions can be accessed by the general public in Texas, they are still very hard to find and offer amazing deals. It takes a lot of guts to buy a foreclosure property as it happens quickly and is sold as-is. Those with a little help and planning can walk away with a brand new home and, even, a brand new real estate career. Texas foreclosure real estate is the new oil, and you may be its next billionaire.

By: Bob Smith II

Townhouses are a great choice in housing for people who may want a little more space and privacy than a condominium provides. Looking at townhouses for sale has many advantages, including:

As a resident, you will not have to do any yard work or other exterior work on a townhouse. Townhouses can have better security than houses or even gated communities. Townhouses are typically less expensive than traditional homes. Townhouses often provide better living space than condos.

A townhouse is like a house in that the owner owns both the structure and the land on which it sits; but it is not free-standing, so “the land on which it sits” is limited to the front and back yards. Townhouses are connected to one another in a row, and are usually two or three stories tall. It is important to note that townhouse refers to the type of house and not to the type of ownership. The ownership responsibility in a townhouse is the same as for a house. Many people, including real estate professionals, are not aware of this distinction. The commonly made mistake you’ll want to avoid is confusing type of house with type of ownership.

Both condos and town homes are owned individually and have an association to bear the brunt of maintenance, security, and recreational extras that would cost much more if paid for on an individual basis. In town home living, the owner holds title to a parcel of land and the building on the land, exclusive use of their limited common areas, and use of the association common areas.

Some associations for town homes have a blanket building policy and others do not, in which case you would need to purchase a separate policy just like in a single family home. The Homeowner Association Fee is an amount paid equally by each owner to share common community expenses. These fees are usually paid monthly and vary depending on the amenity package and size of each community.

Generally the fee covers maintenance of building exteriors, landscaping, pools/spas, roofs, blanket insurance, sewer, garbage, and water. Slight variations exist in the coverage from community to community. Most town homes will have a blanket insurance policy that covers the structures for fire and hazard. This blanket policy is paid for with a portion of the Homeowner Association Fee. It is highly recommended to obtain coverage for the interior of your individual unit as your contents are typically not covered by the blanket insurance policy.

Financing a town home is different than getting a new mortgage on a single family home. The whole development, or phase in which your unit was built, needs to have “project approval” for the particular type of financing you are obtaining. The different types of approvals are FHA, VA, FNMA, and FHLLB. The governing body’s approval is for a certain period of time and requires the homeowners’ association to reapply to keep their approvals current. They must meet owner occupancy ratios, have required minimum reserve accounts, and meet property construction standards and other guidelines.

Town homes can be most simply defined as units that share one or more common walls with their neighbors, but not floors and ceilings. A corner unit townhouse is often considered most desirable because of fewer adjoining walls with neighboring townhouses.

By: Greg Hitchcock

Housing is Very Affordable – One of the first reasons why you should take a look at making an Austin move, or what may help you decide that you should move, is that housing is very affordable both in Austin and its suburbs. In fact, compared to most cities in the US, you will get excellent houses with three to four bedrooms for anywhere between the high $100,000′s to low $300,000s which is practically unheard of near any other large city in America.

Low unemployment rate – With the unemployment rate rising all over America, and the national average reaching a new high of 6.1%, it is amazing that Austin, Texas has an unemployment rate of just 4.5%. What is even more impressive is that unlike the national average, the unemployment rate in Austin has actually been declining the last few years instead of rising, and is expected to continue to drop.

Weird eccentric spirit – Most places would hate to be labeled weird and eccentric, but people in Austin embrace the label even going as far as to unofficially make their motto “Keep Austin weird.” It is not that people are actually odd in Austin, simply that independent and innovative thinking is embraced, therefore thinking outside the box and being yourself is highly valued throughout Austin.

Trail of lights – If you like the Christmas spirit, than you will love the annual Trail of Lights exhibit/celebration that is set up in Zilker Park each December. Over 300,000 strings of lights are strung throughout the park alongside props with over a mile of different scenes for viewers to walk by and see. Or for those from out of town or simply sick of walking a miniature train can take you on a guided tour through the festivities.

Music scene – The individualistic spirit of Austin comes out in full force throughout the burgeoning Austin music scene. In fact, Austin is quickly becoming the actual live music capital of the world, the official label the city has placed on itself. Both the annual South by Southwest and the Austin limits music festival draw in thousands of concert goers and major label bands each year, alongside many local and independent acts.

Young hipster scene – Made possible in part by the nearby University of Texas, in part because of the independent thinking of residents, and partially from the music scene, there is quite a young fresh hipster scene alive and flourishing in Austin.

Organic stores and living – People in Austin value fair trade and organic natural stores, if you like the idea of eating healthy, you will not find an easier way to embrace your values than in activist minded Austin. Austin is home to Whole Foods Market corporate office.

Great education system – It is true, the educational culture of Austin is so excellent with many colleges and universities located in the Austin area that students often dream of Austin admittance. Even at the elementary level people compete to live in some of the best school districts so their child is guaranteed enrollment at some of the notable schools.

Weather – While weather patterns are unpredictable in Austin, outside of rain; for the most part the temperatures never drop below freezing, which means you will not get too much wear out of your winter coat, even in the winter!

Small community in a large city – The Austin, Texas metropolitan area is very diverse and wide offering you many affordable communities to live in that offer you the small town feel while still in close proximity to a very large city scene.

By: Dena Davis

Real estate Allen Texas

Allen Texas has much to offer, particularly for those who are interested in hiking, biking and other outdoor activities. With the Allen Economic Development Corporation and the Allen Community Development Corporation, the city government has continuously improved the value and increased the appeal of Allen Texas real estate over the last 15 years.

If you are interested in buying real estate, Allen Texas may be the right choice for you. The best way to find out is to contact a Realtor, but the information here can help you choose the right Allen Texas real estate agent and may help you decide if Allen fits your lifestyle.

Play Golf

Real estate Allen Texas style includes several courses. The city owns Chase Oaks Golf Club, one of the finest public facilities in the United States. Purchased by the city in 2004, a grand reopening took place in the summer of 2005 after numerous upgrades and improvements. That year the course received high ratings from Texas Golfer Magazine, Avid Golfer Magazine and Texas Golfer Media. In addition, Twin Creeks and Ridgeview Ranch Golf Clubs are located within the city limits.

Current prices of homes in the Allen Texas real estate listings go from under $100,000 to over a million. The million dollar luxury homes are mostly found near the golf clubs. If you are interested in buying or selling a luxury home, you may want to look for the CLHMS certification. This certification means that the real estate agent is a Certified Luxury Home Marketing Specialist. Homes closest to the courses have the highest values and are highly sought after. A Realtor with a CLHMS certification can save you time and money, because of their expertise in marketing these homes.

Walk, Run, Hike, Bike

The goal of the Allen Consolidated Alternative Transportation and Recreation Trail Plan is to travel from one part of the town to any other without driving a motor vehicle. Bike trails and biker friendly streets will help realize this vision. Currently Allen has over 20 miles of paved hiking and biking trails. Increasing physical activity is one of the best things that people can do to improve their health. Walking or biking, instead of driving, can also protect the environment.

Trails near homes in the Allen Texas real estate listings will eventually be connected to other trails in other communities and surrounding cities. A collaboration of six cities including Plano, McKinney, Richardson, Frisco, Garland and Allen will ultimately be a part of the regional Veloweb, a bicycle oriented multi-county trail system. Eventually it should be possible to ride from Allen to Lake Ray Hubbard and beyond, without starting your car.

It is important to choose an agent that is familiar with the area. They can help you find property that not only fits your pocket book, but your lifestyle.

Senior Citizens

In 2006, the new Allen Senior Recreation Center opened. The facility offers activities and programs to residents aged 50 and older. The 23,000 square foot building is located at the corner of Cedar and St. Mary. The center features include a kitchen, dining room, fitness room, craft room, game room and two classrooms. Classes offered range from computer learning to self-help for arthritis sufferers.

Seniors looking to relocate may want to look for an SRES or Seniors Real Estate Specialist. These agents have received additional education to help seniors find a home that suits their needs. Real estate Allen Texas style has much to offer today’s active seniors.

No matter your age or whether you are buying or selling real estate, Allen Texas Realtors can help. There are a number of Allen Texas real estate agents to choose from, but not all are Realtors. Look for members of the National Association of Realtors.

By: Russell Cantwell

Many people discover Austin condos because after falling in love with Texas’ capital city. Austin, Texas condos for sale move fast on the real estate market. The location of Austin lures many people. CNN ranks Austin as the third fastest growing area in the United States.

Many people seek to buy property in Austin because of the natural beauty that surrounds the area. Many Austin, Texas condos for sale, located near Lake Travis, lure celebrities such as Matthew McConaughey, Sandra Bullock and Lance Armstrong. You may see Armstrong cycling near Lake Travis from select areas.

Fishermen seek to buy Austin condos near Lake Travis because of the waters attract some of the greatest catches. Four types of bass, sunfish and catfish swim in the waters of Lake Travis. Others purchase these condos because of their proximity to the lake and their need to play on the water. Parasails and water skiers line Lake Travis almost every weekend.

Nature walkers, seen every time of day on Lake Travis, revel in the beauty of the area. Beautiful foliage and a variety of wildlife calls the area home. Sunsets and sunrises draw many to the lakeshore. Many people looking for condos for sale love the untouched landscape of the area. The natural beauty lures many to buy Austin condos near the lake.

Residents near Lake Travis dine at one of more than a dozen restaurants featuring a variety of cuisine. The fine dining and outdoor activities emphasize the value of homes for sale.

Austin condos containing all the furnishings sell quickly. Three bedroom Austin, Texas condos for sale attract people wanting a family home or a weekend getaway for relatives and guests. Guests bedrooms containing DVD players, televisions and VCRs give visitors an opportunity to watch their own programs without disturbing their hosts. Many people buy Austin condos only to entertain guests on the weekend.

Downtown Austin features every kind of entertainment available. Known for its eclectic music venues, many celebrities travel to Austin to enjoy the night life. Many of these celebrities rent homes for a short period of time while visiting Austin. Other entertainment near Austin lines the streets of downtown—-museums, theaters and restaurants.

Austin condos sell fast due to the recent interest in the city from national media outlets. Austin, Texas condos for sale move faster than any other property. With many of them fully furnished, buyers pay top dollar for these properties. As many people seek natural beauty close to nightlife and a large city, Austin homes will not remain on real estate markets long.

By: Ben Jordan

A real estate sale is usually initiated by an offer from the buyer to the seller, written on a real estate contract form, and backed by a monetary deposit. If the seller accepts the offer, the buyer and the seller are bound by a legally binding contract. While the forms vary by locality, the essential terms include the offer amount, legal description, names of the parties, and date of closing. In addition to these terms, the contract interweaves numerous contingencies, disclosures of information, and procedures that dictate responsibilities of buyer and seller. The contract is the road map that takes you all the way through to closing. It is very important to understand its terms and follow them carefully. If it becomes necessary to terminate the contract, your close adherence to contract terms and procedures is critical.

Loan Contingency

Your contract may contain a provision that the buyer must be approved for a specific mortgage loan and interest rate. If the mortgage cannot be obtained within the prescribed time, the buyer may terminate the contract and receive a refund of deposit. If it becomes necessary to terminate under this contingency, you should be prepared to document that you took prompt action to obtain the loan, received a written rejection, and gave notice to the seller within the time limit set by the contract.

Termination based on credit disapproval is likely to cause anger and disappointment on the part of the seller. The seller may feel that he has been misled into signing a contract with an unqualified buyer. When anger and strong emotions enter into the transaction they may lead to difficulty in resolving the termination.

Title and Survey Review

Contracts usually provide a title review period for the buyer. The buyer may object in writing to defects noted in the title documents. If title defects cannot be cured, you have the right to terminate.

In the same vein, the buyer usually has the right to review a survey of the property. If construction is found to overlap building lines, or if there are encroachments on the property, you may choose to terminate your contract.
It is worthwhile to promptly consult an attorney if you have some concerns about the title documents or survey. Your objection to title or survey problems must be made in writing within the time frame allowed by the contract.

Review of Seller’s Disclosure

In Texas, sellers (with some exceptions) are required by law to provide a seller’s disclosure notice to the buyer. On this form, the seller answers questions and provides information about the property. If the buyer receives the form after the contract has been created, he may terminate the contract within a certain number of days after receiving the seller’s disclosure. The receipt date of the disclosure should be documented in order to establish the start date of the review period. Be careful to avoid confusion about when a time period starts running.

Mandatory HOA Review

In areas where there is a mandatory homeowners association, the Texas contract allows the buyer a period of time to review Subdivision Information. This information is normally supplied by the HOA manager after the contract is created. After receipt, the buyer has the right to review the documents, and possibly terminate the contract. Again, the termination notice must be given within the time limits in the contract.

Inspection Contingency

Contract procedures to allow the buyer to conduct inspections of the property vary from region to region. In some areas, the buyer may terminate if repairs exceed a pre-agreed dollar amount, and seller declines to make the additional repairs. In Texas, the buyer is allowed an “option period,” during which time he has the unrestricted right to terminate the contract. Inspections are done within the option period.

Inspection issues are the most common reason for contract termination. During the inspection period, there is usually some re-negotiation of the price or terms in order to resolve repair issues that have been brought up by inspections. It is crucial to get inspections done, deliver repair requests, and negotiate contract amendments, or, if necessary, terminate the contract, all within the time guidelines set by the contract.

Contingency for Sale of Other Property

In some cases the buyer may have a contingency for the sale of a certain property, usually the buyer’s current home. If this property does not close by a certain date, the buyer may have to terminate. As with other termination procedures, giving notice to the seller within the required time is critical. By allowing this type of contingency the seller has accepted the risk that the contract may not close.

Lead Paint Contingency

Federal law requires that sellers of homes built prior to 1978 notify the buyer of any knowledge or inspections that they may have regarding lead paint. The buyers are allowed a period of time to review materials and conduct their own inspections. If lead paint is found, the buyer may terminate the contract within the prescribed time frame.

We have touched on the most common termination clauses in standard real estate contracts in Texas. Contracts used in other states, or provided by builders for new homes, or written by an attorney for a particular transaction will vary greatly in the contingencies and terminations clauses included. In addition, there may be ways to terminate your particular contract, other than through contingency clauses.

The important thing to remember is that the contract of sale is of primary importance to the real estate transaction. If you follow the terms of the contract and act within time limits, you may exercise the termination rights that the contract contains. If you fail to follow the terms, most contracts state that you have waived the right to terminate.

After you have given the seller notice of termination, two closely related steps must follow: The parties must formally terminate the contract, and the earnest money deposit must be released. If the buyer and seller agree to the termination, their agreement is usually formalized by signing a termination form. In Texas we have an “earnest money release” form that handles both steps – it releases the parties from further obligations under the contract, and instructs the escrow company to give the deposit to one party or the other. It is usually in the best interest of all parties to resolve the earnest money and contract termination issues as soon as possible.

If the buyer and seller cannot agree that the contract is terminated, the matter could lead to prolonged negotiation and possibly, litigation. In most cases, it is in the seller’s best interest to have formal termination of the contract, freeing him to put the property back on the market. However, occasionally, even when it is clear that the buyer has followed contract procedures, the seller may prolong the formal termination process. The seller may want to receive compensation from the buyer for the delay in selling the property. Buyer and seller may have conflicting points of view of the issue. The non- settlement of termination issues can result in additional time and money, and cause unwanted stress.

Most buyers do not enter a real estate contract with the intention of terminating. However, buyers must not take for granted that all will go as expected. If a contingency date lapses, you will lose the benefit and protection of the contingency. A good Realtor, in addition to helping you find the property, can be invaluable in helping you to meet your obligations under the contract and, if necessary, exercise your right to terminate.

Disclaimer: This article is provided as a service to the public. Nothing in this article is intended to serve as legal advice, or as a substitute for legal advice tailored to your specific situation and jurisdiction. If you have a question about an issue discussed in this article, you should consult an attorney directly.

By: Roselind Hejl