September 2009 Huntington Herald Article

There’s No Place Like Home

As a real estate salesperson and a real estate lawyer, one of the issues that repeatedly comes up in my practice, as well as in the headlines, is the real estate market. Real estate is the oldest profession in the world, despite what misinformation some people believe. Throughout history, those individuals and governments who owned the land held the ultimate earthly power. For example, in feudal England, the land owners created their own justice, imposed taxes, printed their own coins, granted others the ability to live and work on the land (or excluded whomever they wished), and forced individuals subject to the lands into military service. This was all done under the power and authority purportedly granted by the principles of ownership of the real estate. Currently, Queen Elizabeth II is owner of the most real estate on Earth. She owns approximately 6.6 million acres of land (1/6th of the non ocean surface of the Earth). Roughly valued, that is about $33 Trillion dollars. Interestingly, the United States is the fourth largest landowner in the world with about 700 million acres, coming in behind Russia and China. Undeniably, an ownership interest in real estate is extremely powerful. When dealing with such powerful interests, involving your lawyer can help you better understand your rights and options.

Depending on the situation, you may either know or be someone who wants to rent, sell, or purchase real estate. Factors that lead to these decisions may be based upon a growing family, job relocation, or by simply downsizing one's lifestyle. Whatever the reason for entering into a real estate transaction, working with your real estate professional and lawyer can greatly assist you in dealing with the real estate players, whether it be owner, renter/purchaser, or the bank. Real estate transactions have become incredibly complex. The following factors are barely the tip of the iceberg, but represent some key issues to consider.

Financing. It appears that owning property is still symbolic of wealth and achievement because people are still clamoring to sign a thirty year mortgage and encumber themselves with half a million dollars in debt to own property. The mortgage secures the debt and gives the lender powerful rights. Your lawyer should review all your mortgage and lender documents for errors, omissions, and extra charges or expenses. Lawyers can work to make the closing process smoother and easier to understand. Your lawyer should also review any value appraisals and title commitments to ensure that your best interests are protected. Renters/Purchasers should understand how to create a budget and stay within safe financial bounds. Your lawyer can assist in the prequalification process and help you understand the multitude of creative tactics that some lenders use to entice buyers, such as points, no closing costs, and ARM mortgages. Sadly, the market is flooded with distressed properties from people who meant well, but did not understand the financial data and terms.

Documentation. One of the most difficult and time-consuming issues is paperwork. That goes for the owners who don't take the time to carefully draft them as well as the renters/purchasers who don't carefully review them. Although it may appear to be layer upon layer of lawyer-speak, “the devil is in the details”. On the owner's side of the equation, a real estate lawyer can assist you in drafting leases and ownership transfer documentation. Lease documents should conform to the current laws, and owners and renters/purchasers should be aware of liability issues such as dangerous conditions, repairs, and deposits. On the renter/purchaser side, advice may be required for explanation of terms and meanings, especially in longer residential or commercial leases, or in a mortgage document or deed. It is critical to understand what you are signing. In today’s real estate market, it is important to make informed decisions.

Disclosure/Inventory & Condition Issues. In a real estate transaction, the seller will generally provide a disclosure statement pursuant to the Texas Property Code, although there are times when a seller will not want to provide one for strategic reasons. Whether you are a seller or a purchaser, you should consult with your lawyer prior to closing on a real estate transaction to determine your rights and responsibilities under the law. A material misrepresentation or failure to provide a disclosure may give purchasers strong remedies under certain circumstances. For lease situations, a landlord should receive and a renter should complete a move-in inventory and condition form. Landlords should notify tenants of statutory remedies when the landlord fails to make repairs under certain situations. For tenants, the form places the landlord on notice of defects, irregularities, damages, or missing items discovered upon move-in. This can protect the renter from being charged for problems that occurred prior to move-in. It protects the landlord by keeping track of damages incurred by the previous renters, as well as allowing the landlord to more accurately track damages and repairs that may be assessed to the previous or current tenant.

Remember, your lawyer owes you a duty to represent your best interests. The business of real estate has been booming since there was land and humans, so there is a vast amount of information to cover. A knowledgeable real estate lawyer can help you navigate these complicated waters.


Jeremy Crew is licensed by the State Bar of Texas and is admitted to practice law in all Texas courts. He is a member of Texas Young Lawyers Association, Texas Bar Association, and American Bar Association. Mr. Crew’s office is located at 115 W. Shepherd Ave. in downtown Lufkin.

August 2009 Huntington Herald Article

I’ve been sued! What am I supposed to do now!?
Thankfully, many of us will not find ourselves in this position before the state court system of Texas or the United States. However, there are certain times when some are hurled into these legal arenas despite best efforts to avoid it. Working in the courts as often as I do, I have noticed that many attorneys take for granted that the rest of the world may not know exactly what to do if they ever find themselves a party to a lawsuit. So, what do you do when you have been sued? The answer is a bit counterintuitive, but you should maintain your calm and keep a level head. This article will outline some of the general issues one should be aware of.

Demand Letter
This is really something that one would receive prior to the filing of a law suit, but it is important to mention because dealing a problem early on may result in a more efficient resolution. The goal of the demand letter is to offer the other party an opportunity to settle the problem without the necessity of filing a lawsuit. This letter also is usually an effort to begin the clock for the thirty day requirement of the Texas Civil Practice and Remedies Code that allows a plaintiff to recover attorney fees if successful.

Process Server
Once the lawsuit is filed with the Clerk of the appropriate court holding jurisdiction over the subject matter of the dispute, a process server will attempt to deliver the service of process. There are several methods by which service of process may be accomplished. Traditionally, the Constable is sent out to the address specified on the lawsuit to personally serve the defendant with process (called the citation). At this time certain clocks begin ticking for action and responses.
The law also allows for a private process server to serve the process. This person is not wearing any distinguishing clothing like the Constable will be. It is advisable to simply accept the service and contact your attorney. As with the Constable, attempting to avoid or flee from them will not help. They may be able to leave the citation with another person or even tape the citation to your door. Under certain circumstances, service can be made by publication. These are the legal notices that you may sometimes see in a local newspaper.

Default Judgment
If one does not respond to the lawsuit within the time allowed by law then a judgment may be entered against you by default. Unfortunately, default judgments are somewhat common. In a lawsuit, I think the natural tendency for some people is to ignore it and hope that it goes away. This is not a good approach. One should remain calm and keep a cool head.

A capable, attentive attorney is worth his weight in gold. As early as possible, it is important to locate and hire an attorney to advise you and represent your best interests. Your attorney can assist you with statutory guidelines, strategic decisions, and valuable counsel. Also, your attorney may determine that you have a valid counter claim against the party filing the suit. Just remember that you are not alone. In my profession, there is no shortage of manpower. Common ways to locate an attorney are through the local phone book, the Texas Lawyer Referral Information Service, or by word of mouth.

Jeremy Crew is licensed by the State Bar of Texas and is admitted to practice law in all Texas courts. He is a member of Texas Young Lawyers Association, Texas Bar Association, and American Bar Association. Mr. Crew’s office is located at 115 W. Shepherd Avenue in downtown Lufkin.