Texas Real Estate Commission
Sale of Equitable Interests in Real Estate Clarified
Governor Abbott Has Signed SB 2212
SB 2212 amends Chapter 1101 to codify the clarifying changes to TREC rules regarding sale of certain equitable interests in real property.
Just like the rule, this statutory change clarifies that a person selling or offering to sell an option or assigning an interest in a contract to purchase real property must accurately disclose to potential buyers the nature of the interest offered. If a person offers a property for sale when the person does not own the property, that person is engaged in brokerage and must be licensed to do so. This is the current law.
If a person offers to sell an option or assign an interest in a contract on a property, the person must accurately describe the interest being offered. The same requirement for accuracy is added in the Property Code. The practice of “wholesaling” remains legal if these “truth in advertising” rules are adhered to.
If your are a UN-Licensed wholesaler you are breaking the law and have been with every assignment or contract you have sold, look out you could easily be liable for any past transactions! If you have not found an expert REAL ESTATE BROKER who understands this and can help you stay in business you can call E-Team Austin Realty Today! 512-554-8554. If you are about to or thinking of buying from a wholesaler STOP! It is imperative you call us before you find yourself on the hook for a home without the proper disclosures and notices. Call and ask for Michael @ 512-554-8554
Millennials are ready to purchase homes finally; after 10 years of declining numbers according to a University of Southern California study. This is fantastic news for the housing market and fantastic news for millennials as they shift from renting to owning. A certain shift from 2014 when Pew research reported that for the first time in 130 years, individuals between the ages of 25-44 were more likely to be living with their parents vs. owning a home.
One of the stunning statistics I came across reading a Bank of America study was total lack of understanding of what is actually available to millennials; their perceptions of what it took to own a home was incredible; here’s what it showed:
-30% of millennials believed they need 20% down to get a mortgage
-31% believed they needed 10% down
-Only 5% believed they needed 5%
-6% were simply unsure
That represents 72% of all millennials! Yet most millennials that do in fact obtain a mortgage pay around 3%!
Until recent times, the factors that contributed to both the realities as well as poor perceptions of one’s ability to own a home were:
- Increase in Debt
- Unemployment rate
- Increase in rental costs leading to decrease in ability to save for a down payment
- Credit requirements after the mortgage meltdown
- Lower inventory of starter homes
- Getting married later- lack of dual incomes to go on mortgage
As I wrote in a prior blog, times are changing for the good. It’s amazing what a positive outlook does for politicians, investors/Wallstreet, business owners and of course, the stock market. Low down and no down payment mortgages are truly helping millennials obtain their goals
My advice to the millennials is simple: roll up your sleeves, get with someone that truly knows what they are talking about and define your point “A”. Meaning, if you want to own a home, don’t be embarrassed about anything: what your bank account says, what your credit score is or what limitations you think you might have. It’s important to get it all out on paper; some may find themselves in their own home right away, some very soon and for the rest, they are left with a clear path to point “B”, an exact game plan.
Next week I will reviewing interest rates and inventory; thanks for reading!