Tell us a little bit about your experience, firm’s history and the areas of law that you practice.

Michael Eaton: A fifth generation Texan, and a fourth generation Texas lawyer, I have thirty years of experience providing counsel and representation to parties involved in all aspects of real estate transactions. Whether you are a buyer, seller, developer, conventional lender or mezzanine lender, we can assist you in all types of commercial and residential transactions. With well over $1,500,000,000 in real estate transactions successfully completed, we have the experience necessary to advise clients in every type of real estate deal. We utilize our significant experience in business organizations and financing structures to provide our clients every available advantage in the current market environment.

What types of residential transactions does your firm typically handle?

We often represent buyers who are making residential purchases in document review and advice. We take a more heavily involved role in custom build and construction issues related to those transactions. We handle transactions as simple as a $100,000 home purchase for cash to multimillion dollar custom build transactions.

What are some reasons that people buying a home would want to consult with a lawyer?

As in any business transaction, it often benefits even experienced buyers to have an objective professional examine the purchase contract and other sale documents. Additionally, we often can answer questions that arise about property conditions or defects, title issues, and mineral rights, as well as HOA issues that are so common in residential transactions today.

Can you briefly explain the process of working with a lawyer to purchase residential property?

Usually, we have an initial consultation with the clients to discuss their needs and desires, and to determine if they need more than a simple document review. A review of the sale documents, as well as the financing documents is worth the cost of employing a lawyer.

Are there any state laws about transferring property ownership that most people aren’t aware of but should know?

Well, in terms of traditional financing, most transfers are not especially noteworthy, but in the case of owner financings, one must be aware of any underlying loans that exist. If a seller has a third party loan secured by a deed of trust and transfers title in an effort to owner finance the property, it usually trigger the due on sale clause in a standard deed of trust, which means the entire note balance is due, or a default occurs.

When it comes to the actual buying process, what is one of the biggest mistakes that you’ve seen new homeowners make?

Often the biggest mistake people make is not raising issues or sufficiently addressing issues of property defects discovered in the inspection process, which may lead to post closing problems, and even litigation.

What’s the best way for people to reach you and your firm?

We can be reached by telephone at 817-431-1111, or by e-mail at info@eatonlaw.com. We are located in Southlake, minutes from DFW International Airport, and conveniently accessible from the metroplex. You can also find out more info on our website www.eatonlaw.com.

By Michael Eaton

Tell us a little bit about your company and its foundation.

Anthony Ciccone: Our law firm was formed in 1990. Since then, we’ve had a strong presence and reputation in and around Central Texas for providing construction, real estate and business advice. KLCB is experience, effective, local and loyal.

Finding the right real estate lawyer can seem very overwhelming for a first timer, what is any advice you have for them?

Look for an attorney or firm that is known in the industry and has a reputable track record. Read their website, especially the attorney bio section and ask other lawyers for referrals.

When it comes down to it, what are the five most important things you need to know about your real estate lawyer before hiring them?

Cost, experience, length of time it will take to complete the work, and most importantly, what is your expected outcome. Then communicate with your attorney and make sure that your expected outcome correlates with the cost estimate.

In your opinion, how important are testimonials and recommendations from others when choosing a real estate lawyer?

I think it depends on who the testimonial or recommendation comes from. It is best to get recommendations from other people who work in this industry such as a real estate or construction attorney.

Is it possible to consult with a real estate lawyer free of charge prior to making your decision about them?

Depends. Our firm will usually give a 10 or 15 minute telephone consultation free of charge. But if a person needs more then there is usually a charge associated with the work.

What is the easiest way for people to contact you or your business?

I can be contacted at Kiester, Lockwood, Ciccone & Bollier, LLP, www.klclawyers.com, 512-477-5796, or Tony@klclawyers.com.

By Anthony Ciccone

Family disputes often bring out the worst in people. During her time as a lawyer in the family courts, Fran Brochstein, Attorney & Mediator, saw plenty of bitterness and few solutions. She says that she found her time in family law litigation to be frustrating.

“You see good people at their worst. Litigation is expensive and is a slow process. Most family court dockets are full and sometimes even getting a hearing on an emergency situation can take up to a month, when a child is potentially in harm’s way waiting several weeks to get before a judge is unacceptable.”

In 2003, after a brush with breast cancer, she decided on a career change from litigation to mediation: “I offer an alternative to going to court. Many courts now require mediation prior to trial. In fact, some courts now require mediation before a person can request even a hearing before the judge.” She took her first mediation training in 2004 and is now qualified to train mediators. She has a full-time mediation practice in Houston, Harris County and surrounding counties, focusing on family law cases like divorce, child custody, child support, property division, and modifications.

Mediation is widely used in cases such as small claims court, civil cases, family law and elder cases. It has many advantages over litigation, Brochstein says: “Mediation is a confidential process that uses an impartial third party to help people engage in conflict constructively and discuss their issues. The mediator helps the parties come to an agreement that all the parties can live with. The mediator does not tell the parties how they should resolve their differences but the mediator may offer suggestions for the parties to consider.”

Brochstein explains that mediation is less formal than going before a judge. While judges are bound by the rules and have to follow the law, mediators can “think outside the box” and come up with solutions to which both parties can agree. Mediation also saves both sides having to go through a time-consuming and costly court trial. It preserves their confidentiality and unlike family law cases that are tried in the courts, private matters don’t have to become matters of public record.

Brochstein recalls an usual mediation case she handled earlier this year, which ended well. A couple in their 60s were getting divorced after being married for forty years, and she was contacted by their grown son to help his parents. The wife had no experience of handling financial affairs but hired a financial consultant and got her first credit card.

Thanks to Brochstein’s mediation, the process was respectful and gentle, and the couple were able to reach an agreement that suited both. Once the agreement was finalized, the legal paperwork was handled by an attorney.

Even though she has been licensed as an attorney in the State of Texas for twenty-five years, Brochstein cannot serve as attorney in cases where she is also the mediator. She does have a list of trusted attorneys that she can recommend to clients. Finding a good attorney whom you can trust can be challenging, and Brochstein’s advice is to meet with the attorney before signing a Legal Services Agreement.

By S. Mathur

Get Help with Common Real Estate Disputes: an Interview of Michael Farah of Farah Legal

Tell us a little bit about your firm and the areas of law that you practice?

• Real Estate Document Preparation (sales contracts, leases, deeds, etc.)
• Entity Formation
• Asset Protection
• Landlord/Tenant Services (Evictions)
• Real Estate Deeds
• Commercial Real Estate Consulting
• Owner Financing Transactions
• Title Transfers
• Real Estate Closing Services
• Real Estate Liens
• Litigation Services
• Insurance Disputes
• Farm and Ranch Legal Services

Practicing Attorneys

Michael Farah, the founder and managing attorney of the Farah Law Firm, takes extensive pride in every aspect of law. Mike graduated from the University Of New Hampshire School Of Law with a Juris Doctor and an L.L.M. in Intellectual Property. A native Texan, he completed his undergraduate studies at the University of Texas at Austin, where he majored in Political Science. Mike also manages a real estate brokerage firm, and his broad range of experiences in both law and business allow him to tackle complex issues and find optimal solutions. Part of his success stems from his ability to communicate effectively with his clients and associates, as well as his ability to work as part of a team while managing others. Simply put, Mike brings knowledge, dedication, and a positive outlook to virtually any situation. Mike is licensed to practice law in Texas and New York. He is also a licensed Realtor® in the state of Texas and an avid real estate investor. Michael enjoys giving back to the community that has embraced him and the firm so well. Michael also directs a 501C(3) Non-profit Organization, which gives back to those that need financial assistance with housing. Giving back to the community has always been an important part of our business, and we strive to do so whenever time allows.

Wayne Taylor received his Juris Doctorate degree from the Texas Wesleyan University School of Law in 2012. While in law school, Mr. Taylor interned with the David Dewhurst for Lieutenant Governor Committee along with working with various other campaigns in the Fort Worth area. Mr. Taylor was also a member of the Texas Wesleyan Center for Law and Intellectual Property, a program that allowed him to engage in dialogue with scholars and practitioners at the forefront of intellectual property issues through conferences.

What are the most common real estate disputes that you handle regarding the purchase and sale of homes in Tarrant County?

The typical concern we face, at least on behalf of sellers is what level of detail that is required on the sellers disclosure form which can lead to problems between buyers and sellers in the future. This and other types of mistake more often leads to eventual breaches of contract cases, which is the most common dispute. There are also lots of potential disagreements that can arise during a transaction which can lead to one party’s failure to perform in one way or another.

We also tend to see lots of liens and other encumbrances arise during the sale of property which need tending to quickly in order to effectuate a sale.

Can you briefly describe what a nondisclosure case is?

Fraudulently or knowingly disclosing known defects in a home. A common instance we see is known defects in the house prior to the sale this could include something as simple as hiding a crack in the wall to something as drastic a busted pipe hidden by a rug or a known flooding issue that is not always apparent to a homebuyer or an inspector.

How does an attorney help home buyers when the seller failed to disclose a defect in the house or property that was sold?

We would engage with the seller to discuss the undisclosed defect in an attempt to resolve the issue. We try a non-litigious route first, prior to litigation, and sometimes, if those efforts fail, we can force the parties to mediate the dispute amicably e terms of the contract. Sometimes, litigation is the only route to a resolution depending on the severity of the issue.

Are there circumstances when a buyer/seller can back out of the sale of residential property?

There are almost always circumstances in which both buyers and sellers can back out of a contract. The question becomes what liability either party has for backing out of the contract. This can be a financial, or required performance liability. A parties liability under the contract is determined by the terms of the contract which can and should be negotiated before signing. We highly suggest home buyers and sellers review and understand the ramifications for inaction, or backing out of a contract prior to signing.

What would you recommend that a home buyer and/or seller should do before hiring a lawyer to help settle a real estate dispute?

An open and honest conversation regarding a dispute is usually the best place to begin. However, the potential ramifications of informal discussions and the delay that is usually created make it advisable to first talk to an attorney before even beginning those conversations. Most reputable attorneys will typically help guide your actions prior to having to spend lots of money just to talk to someone.

When should I let my agent handle the dispute and when is a good time to have an attorney get involved?

While most real estate agents and brokers are capable of handling straight forward residential real estate transactions we always suggest the use of an attorney when it comes to situations that are outside of the box or transactions that are of very high value, ie: One million dollars or more. We also suggest utilizing attorneys on unique or non-traditional properties and purchases. There can be unexpected consequences for something as simple as failing to strike a sentence or utilizing a wrong “form contract” which realtors are universally known to do, and most of the time, required to pursuant to the applicable law.

Buying a home is possibly one of the largest purchases a person will make in their lifetime; I would highly discourage using a non-lawyer to resolve disputes regarding performance under a contract.

What’s the best way for people to reach your firm?

Our philosophy at the firm is to always be available to our clients. Michael or Wayne, the attorneys make it a point to personally returns all phone calls, emails and works closely with each client to make sure everyone gets the personal attention they deserve. The Farah Law Firm can be reached at 817-467-1889 and/or email Michael Farah at mfarah@farahlegal.com. Clients also can reach us via our contact form at www.farahlegal.com/contact-us/ .

By Michael Farah

How to Become a Texas Real Estate Broker

Follow the steps to learn how you can become a licensed TREC real estate broker in Texas.

Looking to become a real estate broker?

So you want to become a real estate broker in the State of Texas? Most people have the wrong impression of real estate as a get-rich-quick occupation. In reality, real estate is a tough business where you may face long and often irregular hours, can be on call to clients at any time and must wait weeks or months (especially with a short sale) to close a sale and get paid with no assurance that the sale will actually close.

On the positive side, active real estate brokers have several essential freedoms that real estate sales agents do not — namely, a broker can start her/his own firm, hire agents to work under them (if they wish), and receive commission payments directly, without splitting it with any managing broker working above them.

Broker candidates must have an active Texas real estate salesperson license and show proof of four years of experience as a real estate salesperson in the State of Texas. The Texas Real Estate Commission (TREC) administers the licensing and laws that help protect the public when buying or selling real estate.

Take the next step to become a Texas Broker

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Here’s a complete rundown of the requirements you need to meet to take the next step in your career and become a real estate broker in Texas:

1. Possess the aforementioned four years’ experience as a licensed salesperson and have acquired 3,600 experience points in four out of five years as a salesperson. Completed sales of single-family homes count at 300 points per sale and 450 points are given for completed apartment sales of five or more units.
2. Take additional licensing requirements to include a 900-hour state-licensed education course of broker pre-license subjects, which should include 270 hours of core real estate courses, 630 hours of classroom hours or have completed a college bachelor’s degree and one 30-hour brokerage course that counts toward the core course requirement (taken online, in classroom or by correspondence).
3. Apply for broker license after meeting the experience points and the broker education requirements by sending in a completed application along with the required $465 licensing application fee, $10 for recovery trust account and $34.25 for fingerprinting and/or background screening in one check or money order plus all other TREC-required documentation. TREC prefers online application completion and payment.
4. Once acceptance and approval of the application has been received, contact PSI to schedule the state exam at the location of your choice and pay the $61 examination fee. Download the Candidate Information Bulletin.
5. Show up to the exam location, pass the test with a 75% or higher grade and leave with passing score report in hand.
6. Receive your Texas broker’s license from TREC. Do not practice until this license is received.

For varying reasons, some brokers elect to continue working under another broker (in which case they are recognized as an associate broker). But for those who elect to start their own firm, the capital needed is relatively small, but you will still need several thousand dollars to get licensed, acquire and maintain Errors and Omission (E&O) insurance, post a bond, join real estate associations, market your firm to potential home buyers or sellers, and perhaps recruit agents to work under you.

Then, as with any real estate career, it may take months until you get your first sale and the commission check that comes with it, so it’s recommended that you have financial stability, whether through a second job, a spouse or several months of savings, to survive this time period as your business gains momentum.

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There are many people who think that if you own land in Texas you have the unquestionable legal right to access it, but this is not the case. In fact, as the population continues to grow in Texas, more and more land is becoming landlocked-inaccessible to it owners. Understanding easements is critical to ensure you do have the legal right to access your property, and that the easement attaches to the land so that you can sell the property in the future without access problems.

In Texas there are two types of land access easements. The first is an easement appurtenant. This type of easement attaches to the land and benefits the owner. The owner has the legal right to use the easement to access the property. When the owner sells the land, the easement remains attached to the property and benefits the next owner of the property. The second type of land easement is an easement in gross. Easements in gross attach to and follow a specific individual. It stays with the individual who receives the easement even if ownership of the land changes hands. It is really a personal right as opposed to ownership in the real property. Easements in gross cannot be transferred or assigned unless the right is actually stated or granted in the easement itself. To protect your land from becoming landlocked the appurtenant easement is the best type of easement.

Easements can become very complicated depending on the number of properties involved in the easement. It is best to involve legal assistance to ensure your easement is legally tight and that your property will have free and unobstructed access now and in the future. There have been court cases where one property owner decides to erect a gate or fence that cuts off access for another property owner so the details of the easement and the proper recording of the easement are all issues you need to research carefully and properly document. The language of the easement must also be extremely detailed and accurate for your protection and the protection of anyone you may ultimately sell to. Ambiguous language opens the door to legal suits and future access issues.

Apart from land or use easements Texas also has conservation easements. Conservation easements are voluntary legal agreements that ensure a property will be maintained according to the landowner’s wishes for a period of years into the future and can qualify the landowner for tax benefits.

The holder of the conservation easement must be a governmental entity or a qualified conservation organization. With a conservation easement, the landowner retains the legal title to the property and determines the types of land uses to continue and those to restrict. As part of the agreement, the landowner grants the holder of the conservation easement the right to periodically assess the condition of the property to ensure that it is maintained according to the terms of the legal agreement.

With a conservation easement, a landowner limits one or more of his rights to manage resources, change use, subdivide or develop the property. When a landowner donates a conservation easement the owner may choose to limit the right to further develop the property but retain the right to build a house or grow crops. The landowner can continue to use the property as long as the resources the conservation easement is intended to protect are sustained.

Understanding easements is vitally important to ensuring your rights of access and use are fully protected now and in the future.

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