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Table of Contents

Chapter 1. Legislative and Regulatory Changes................................................... 1
Changes in the Real Estate License Act (TRELA) in 2007................................... 1
License Renewal.................................................................................... 2
Other Legislative Changes......................................................................... 3
Regulatory Update.................................................................................. 8

Chapter 2. News Briefs.........................................................................................9
RESPA & Procedural Rule P-53.................................................................. 9
Do-Not-Call, Do-Not-Fax, Do-Not Spam.....................................................10
Builders – Texas Residential Construction Commission....................................12
Concerns Over Mineral Rights in Some Residential Transactions.........................13
Executory Contracts, Contracts for Deed, & Lease-Purchase Agreements..............14
Mold Assessment and Remediation.............................................................15

Chapter 3. Signatures, Records & Completing Forms..................................17
Electronic Transactions Signatures..............................................................17
E-Sign Signatures...................................................................................17
Consumer’s Consent for Electronic Signature................................................18
Technology..........................................................................................18
Signatures for Divorced Parties..................................................................19
Signatures in Foreclosures........................................................................19
Relocation Companies............................................................................20
Bankruptcy..........................................................................................20
Common Mistakes When Completing Contract Forms.....................................21

Chapter 4. Recent Cases..........................................................................23
Lewis v. Foxworth.................................................................................23
Aguiar v. Segal......................................................................................24
Bentley v. Peace & Quiet Realty 2LLC.........................................................25
Huntley v. Enon Limited Partnership...........................................................26
Norris v. Thomas...................................................................................27
Pulley v. Milberger.................................................................................28
Belew v. Rector.....................................................................................30
Probus Properties v. Kirby.......................................................................32
Coldwell Banker Whiteside Associates v. Ryan Equity Partners, Ltd......................33

Chapter 5. Mortgage Fraud......................................................................37
Difference between Mortgage Fraud, Sub-Prime Lending, and Predatory Lending....38
Home Loan Corporation v. Texas American Title Company................................39

Chapter 6. TREC Forms..........................................................................41
10–5 Addendum for Sale of Other Property by Buyer......................................41
11–6 Addendum for “Back-up” Contract.......................................................42
12–2 Addendum for Release of Liability on Assumed Loan and/or
Restoration of Seller’s VA Entitlement...................................................43
15–4 Seller’s Temporary Residential Lease ...................................................44
16–4 Buyer’s Temporary Residential Lease....................................................45
26–5 Seller Financing Addendum...............................................................46
28–1 Environmental Assessment, Threatened or Endangered Species,
and Wetlands Addendum..................................................................47
32–1 Condominium Resale Certificate........................................................48
33–1 Addendum for Coastal Area Property...................................................49
41–1 Loan Assumption Addendum.............................................................50

In cooperation with the Texas Real Estate Commission, the Real Estate Center at Texas A&M University developed this real estate legal update curriculum with the assistance of an advisory committee of active licensees, attorneys and education providers. Real estate licensees are encouraged to acquire additional information and to take courses in specific, applicable topics. This curriculum has been developed using information from publications, presentations and general research. The information is believed to be reliable, but it cannot be guaranteed insofar as it is applied to any particular individual or situation. The laws discussed in this curriculum have been excerpted, summarized or abbreviated. For a complete understanding and discussion, consult a full version of any pertinent law. This curriculum contains information that can change periodically. This curriculum is presented with the understanding that the authors and instructors are not engaged in rendering legal, accounting or other professional advice. The services of a competent professional with suitable expertise should be sought.

The authors, presenters, advisory committee, Real Estate Center and Texas Real Estate Commission disclaim any liability, loss or risk personal or otherwise, incurred as a consequence directly or indirectly from the use and application of any of the information contained in these materials or the teaching lectures and media presentations given in connection with these materials.

When using this course for three hours of Legal Update MCE credit as required by the Texas Real Estate Commission, the student course manual must be reproduced and used in its entirety, without omission or alteration.