Real Estate Agents are More than expensive Tour-Guides and Provide Vital Services
Knowledgeable about property: If there is a crack in wall - your agent will not comment, he/she is required to refer-you to a professional qualified property inspector ---- you get the best possible advice.
Fills-in Blanks on Contract: Your agent will prepare the 10 page contract form required by the Texas Law. If there is something unusual, your agent will refer you to a competent attorney ---- it is illegal to modify the standard form, however, note - if you sell the property yourself you can still use any form you wish.
Keeps you out of jail: Generally when dealing with people of Hispanic origin, all conversations and contracts need be done in English and Spanish. This is mandatory in certain parts of the state and there are civil and criminal penalties for violations ---- this facilitates better understanding and communication.
- If you divide your property, like - draw lines across the land and give each of your kid's their own portion, you can go to jail, and while you are in jail your children or the State of Texas can sue you for deceptive trade practices.
- How this works - At the instant you divide the property, you have committed a criminal offense. The ownership of the property reverts to the State of Texas (if you can't sell it - you don't own it and though the State of Texas has the right to take your property, they also have the responsibility to pay for it - however the State of Texas doesn't see it that way.) When you give the property to your kids, you are you are selling property you do not own, thereby committing a deceptive trade practice. ---- County Attorney Ken Oden is aggressively pursuing criminal prosecutions in this area and collecting lots of fines and penalties for the County Treasury.
You Cannot Sell Property "As-Is": Your agent helps you fill-out the Disclosure form prescribed by the State of Texas. Texas law now requires that you must disclose all defects relating to the property.
- So, you enclosed the garage, do you have a permit? was it reported to the tax department?
- What about the washers that were installed in the leaky faucet? Was that done by a licensed bonded plumber? ---- your agent can direct you to professionals who can obtain the necesssary permits.
- The same disclosure form is also required for leasing the property for more than a year, and is recommended for all rentals.
- If you do not disclose a defect this leaves you open to future liabilities, and even if you do disclose the defect, the law may change in the future and you may have unforeseen liabilities, especially in the case of retroactive laws or if there are deep pockets in the chain of title. ---- your agent can direct you to a reputable liability insurance carrier.
If they know-it they disclose-it: Your agent is required by law to disclose any and all defects he/she becomes aware of ---- This prevents real estate agents from acting like salespeople and provides the consumer with objective information.
Professionalism: Real estate agents cannot talk despairingly about another agent (this is now illegal).---- this will upgrade the image of the profession.
Reporting the Transaction: Your agent will handel reporting the sale to IRS for you (title companies usually handle this for the agents)---- they are required to do this, by law.
MLS Database is Made Available to the local taxing authorities---- your property value is updated for tax purposes and information concerning your purchase and financing is now available to the public ---- you don't have to make the public announcement.
Some Property Owners Defeat these Provisions by
by obtaining the forms from the Texas Real Estate Commission*
by checking everything as defective, on the disclosure form
by not allowing their agent near the property
or by selling the property themselves.
.........this is of-course not in the spirit of things.........
* the forms are available on floppy disk from the Texas Real Estate Commission for $10, however, it is illegal to print and use the electronic copies. You must purchase the paper copies. They are continually updating the forms to cover all possible contingencies. The latest paper copies may not be available, however the prior approved form is not for sale either, because it's not the current form.