Contract for Deed in Texas

[TexasGal]

Can a Contract for Deed in Texas that is full of violations be enforced by a judge? I am behind on monthly payments on my homestead and have been taken to court for an eviction. I entered into the court room with page after page of violations, printed directly from the Texas Property Code. Most serious one being the Annual Accounting Statement that will fine the seller $250.00 PER DAY for not providing me with this statement. There were several violations that I could find. I'm sure a lawyer would find more. The judge says that the contract I entered into with the seller is still good and enforceable, even though she left out many items from the property code. She said I should have known what I was signing. The seller is the one that sell's property all the time, she should know the laws. Please hurry with an anwer.     thank you

[Admin]

TexasGal,
Obviously, you're in a hurry and you need good answers.  To me that screams "get an attorney".  I've not had to fight that fight from either side before so I certainly can't respond intelligently.

[tedjr]

Get a lawyer for sure. I wish mine was around because he saved our butt in the exact same circumstances. We were behind on payments and what the seller was trying to do actually violated usuary laws. The sellers attorney backed down and we were given time ti find new financing and buy out the contract even after the 5 year term had expired. I hope you can keep your home

Happy Holidays and Thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas  78737
512-301-9171 home
512-587-6177 mobile

[TexasGal]

I do need an attorney, but I don't have the money for one. These laws were passed by the Texas Legislature to protect the consumer. These are SOME of the violations; 1.) SELLER'S DISCLOSURE OF PROPERTY CONDITION - she should have provided me with a completed form. 2.) AMMORTIZATION SCHEDULE - she was supposed to provide me with one upon signing of contract. 3.) RECORDING CONTRACT - she should have recorded contract at courthouse within 30 days of me signing the contract. 4.) PURCHASER'S RIGHT TO CANCEL CONTRACT - upon signing contract, she should have provided me with a form stating that I had 14 days to cancel for any reason and not be held liable. She did NONE of the above and more. The judge is reviewing and will decide Monday morning. But she did tell me that just because some of the above listed items were not done, does not mean it is an illegal contract. Of course, I say it certainly is! How can a contract be enforced if it is illegal?  

[tedjr]

Contracts only need a few things to be legal or enforceable or not voidable. You need consideration which you have. You need to be able to legally enter a contract, proper age, sane, no duress, etc. It has to be a legal business or product or service.  There may be a few others , I forget. I studied this stuff 30 years ago. Sounds like contract is legal but seller has violated several provisions of the contract by non performance and possibly several violations of the new contract for deed laws. Violation equals default possibly. If you did not pay on the contract  or did not keep insurance you could be in violation of some of the provisions but the contract would still be legal. She would have provisions in the contract to cancel the contract and reposses the property.  Sounds like the judge will sort it out and I hope the ruling will be on your side. If you do get evicted you may receive monetary damages for the sellers violations. I am not an attorney just merely giving you some free information that I have learned over 30 years of dealing with re and contracts etc. It is free and not legal advice.

Happy Holidays and Thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas  78737
512-301-9171 home
512-587-6177 mobile

[Guy G.]

The Contract for Deed regs are very specific, but a violation of them does not void a contract.  It may indeed mean you have specific legal remedies available, but you would almost certainly still have a valid contract if the contract was valid when it was entered into.  It sounds like you're in front of a Justice of the Peace...is that correct?  If so, it's been my experience that because JP's are not attorneys, they seldom know more than the average person regarding legal matters, and they almost always find in the Seller's / Landlord's failure because those are the taxpayers, Renters are not.  If this is the case, you can always appeal your case to the County Court where a real judge with legal experience will rule on the merits of the evidence, but you'll definitely need an attorney for that court date.  Don't mean to be pessimistic but you either better find the money for an attorney or be willing to accept whatever ruling, legal or not, the "judge" offers.  If you need to talk about it in person, give let me know and we can talk by phone.  

[Guy G.]

OOOPPSS.  Forgot to mention my disclaimer.  "Do not consider the previous reponse legal advise.  It is merely for discussion purposes and competent legal counsel should be contacted for legal advice."  There, since I'm not an attorney, I'm not practicing law, so don't sue me!  Good Luck.

[TexasGal]

  GUY G... I promise NOT to sue you... hehehe. Thanks to all for the advice... I guess things don't look good for me! I thought since it was a homestead it would be somewhat more in my favor, but I guess not. I'll keep you posted. Maybe my hubby will give you a call. Thanks again and Merry Christmas to all. Eva

[TexasGal]

Most of the new Contract for Deed laws went into effect Sept. 1995. I signed my contract with her March 1996. As for Insurance... my insurance was cancelled. Why? Seller had a new roof put on in 1995 (Before I bought the home). According to the City, a building permit was NOT obtained, therefore no inspections. No inspections means that the roof was never approved and no paperwork could be turned in for Windstorm Certification. I was informed by a couple of agents that new laws require a certificate in order to insure a home.  Bottom line, I would have to hire an engineer to come out and inspect, to be able to get the certificate. I don't think I should have to pay for that since the work was done while she still owned the home. I wrote her and asked her to bring in an engineer and my letter went unanswered.  Just as the letter that I sent her informing her of her share of the pro rated taxes the first year I moved in. And stupid me, just let it go. If JP does rule against me, I do plan on appealing her decision. I could use $611,000.00 plus for the Accounting Statement that seller is required to send me by January 31 of each year.  I am NOT a renter, I pay taxes on my home.  School, county and city. Guy G. if you would, please email your phone number to me. Probably will give you a call. email ejc1961@hotmail.com thanks... I gotta be back in court Monday morning 12-22-03 at 9 am . I gather from the comments that the judge made, that she has made her decision against me. She just wanted to review all the paperwork I handed her from the Texas Property Code. I told her that she couldn't enforce a contract that was full of violations. We'll see !!!!!  ???

[Guy G.]

In What county/city are you located?  After the "Judge" metes out his/her "justice," I would seek the advice of a competent real estate attorney.  Even if one charges you for an hours worth of consultation, it would be worth it.  It sounds like you've already researched the laws regarding CFD, so you already know if you have much of a case or not.  I can give you the names of a couple of real estate attorneys in the Austin area if you need.  Just call me at 512/635-3887.  Good Luck!

[TexasGal]

GuyG, thank you so much. I will call you tomorrow. We were discussing today hiring an attorney from the Austin area, one that is closer to the place where the State Legislators meet. I am in San Patricio County, city of Ingleside (22 miles N of Corpus Christi). These new laws come into effect for a reason. The legislators don't meet just to sit around to drink coffee and eat donuts (at least I hope not). Does the decision of a JP surpass the laws set by the Legislature? Do they mean nothing? I would hope not. I know that I am on the losing end on this one. The JP's comments told me so. Another thing, it states in my CFD that I cannot record my CFD. I thought it was my right to record it at the court house!!  Will call you. Thanks

[Guy G.]

The JP court is the "commoner's court" if you will, which is why you can represent yourself....seldom a good thing.  It is not a court of record, but it does have legal authority to make a ruling.  You must remember that many JP's have very little training when it comes to criminal or civil law.  It doesn't mean that they're bad people, just not as qualified as I'd like to have when they're  ruling on a case as serious as the one you have.  Once that JP makes his/her ruling, you'll HAVE to hire an attorney to get your appeal to the County Court.  Unfortunately, far too many JP's are more effected by who donated to their campaigns than who is right or wrong.  For future reference, you can always bypass this court and appeal directly to the County Court thereby skipping this miserable step.  And there's a reason that your Seller didn't want you to record this in the county records....you can't cloud the title for future sales.  Will wait to hear back from you Monday AM.

[makenmoney]

Yep, It could possibly be enforceable.  I don't know all the ends and outs but when I spoke with my attourney he was the one that mentioned the clause you talked about and courts are taking that one very seriously!  It's a recent change, (couple of years, I think) and many old timers haven't paid attention to it.  Contact Charlie Brown in Austin TX.  Good Luck, Kathy

[TexasGal]

makenmoney (Kathy)... thanks for your reply... the laws that i speak of took effect in my County back in Sept. 1995, I signed my contract 6 months LATER! I have contacted legal aid and they at least are going to try to help me. The judge told me I should have known what I was signing, yes maybe that is true... I was a first time home owner. The seller should have been aware of the law since she is the one that sells homes on Contract for Deed. Is Mr. Brown your attorney? Will he do free initial phone consultation? I am near Corpus Christi. Again Thanks

[makenmoney]

Yes, Charles Brown is a real estate atorney in Austin.  I don't know if he gives consultations over the phone but it can't hurt to ask. Maybe he knows someone in Corpus that can help you. His office number is 512-476-8942.  Good Luck, Kathy