Real Estate Legal Services for Texas Investors and Owners
Real estate legal work covers the contracts, entities, and filings behind a property deal: drafting or reviewing purchase and sale agreements, choosing the right ownership entity, negotiating leases and joint ventures, resolving title problems, and coordinating the closing. In Texas, a title company usually runs the closing, so an attorney adds the most value before closing, in the contract and the ownership structure.
What does a real estate attorney do in Texas?
- Draft or review purchase and sale agreements, options, and addenda.
- Form and structure LLCs and partnerships that hold property.
- Draft joint venture and operating agreements between partners.
- Negotiate commercial leases for landlords and tenants.
- Review title commitments and surveys and clear title problems.
- Document seller financing: promissory notes, deeds of trust, and related disclosures.
- Coordinate with the title company, lender, and qualified intermediary through closing.
Do I need an attorney to buy or sell property in Texas?
No. Texas does not require an attorney at closing, and title companies handle most closings. But you are bound by the contract you sign, not by the closing paperwork. Real estate license holders generally must use forms promulgated by the Texas Real Estate Commission (TREC) for residential deals, and those forms do not fit every situation. An attorney can draft or revise terms for investment deals, seller financing, land, commercial property, and anything with partners or unusual timing.
What makes Texas real estate law different?
- Non-judicial foreclosure. Texas uses deeds of trust with a power of sale, so a lender can foreclose without going to court. Foreclosure sales are held on the first Tuesday of the month, which compresses the timeline for borrowers and for buyers of distressed property.
- Option period. The standard TREC contract lets the buyer pay an option fee for a set number of days during which the buyer can terminate for any reason.
- Seller's disclosure. Most residential sellers must deliver a statutory disclosure notice about the property's condition.
- Homestead protection. Texas homestead law restricts how a primary residence can be encumbered and protects it from most creditors, which affects lending and structuring.
- Regulated title insurance. Title insurance premiums in Texas are set by the state, so the price rarely varies between title companies. Service, speed, and the underwriting of exceptions do.
How should I hold investment property?
Investors usually hold rental and development property in an LLC or limited partnership instead of their own names. A properly maintained entity, with separate accounts, adequate insurance, and no commingled funds, can separate the property's liabilities from your personal assets. It does not protect you from claims based on your own negligence, and it does not replace insurance.
For owners with significant liability exposure, entity planning can combine with an asset protection trust. The right layering depends on your portfolio.
Joint ventures and syndications
When you bring in a capital partner or several passive investors, the agreement has to answer: who controls decisions, who funds capital calls and what happens if someone does not, how profits are split, what happens on a sale or buyout, and how disputes are resolved. If the money comes from passive investors, the interests are usually securities, and the deal needs a securities exemption. See securities offerings and fund formation.
Commercial leases
Commercial leases are negotiated, not standard. Terms that most often cost money later are: who pays taxes, insurance, and common area maintenance (triple-net leases push these to the tenant), rent escalations, personal guaranties, assignment and subletting rights, default and cure periods, and what must be restored at move-out. Landlords and tenants both benefit from reading the lease with an attorney before signing.
Title problems and curative work
A title commitment lists the exceptions the title insurer will carve out of coverage. Common issues include old liens, unreleased deeds of trust, easements, boundary or survey conflicts, missing heirs, and gaps in the chain of title. Curative work resolves them before closing, through releases, corrective instruments, or, in harder cases, a court action. Catching a title problem during the option period or due diligence period is far cheaper than discovering it at closing.
1031 exchanges
A like-kind exchange under Section 1031 of the Internal Revenue Code lets an investor defer capital gains tax when selling investment real estate and buying replacement property. It requires a qualified intermediary to hold the sale proceeds, written identification of replacement property within 45 days of the sale, and closing on it within 180 days. Contract language drafted before the sale closes matters here, so involve your attorney and tax adviser early.
Common mistakes
- Signing a form contract that does not cover financing, assignment, or extension rights the deal needs.
- Letting the option or due diligence period expire before title and survey are reviewed.
- Retitling mortgaged property into an LLC without checking the due-on-sale clause.
- Putting a verbal partnership agreement in place of a written operating agreement.
- Raising money from passive investors without a securities exemption.
Free consultation with a partner attorney. No cost, no obligation.
Book Free ConsultationFrequently asked questions
Do I need an attorney to buy a house in Texas?
No. Texas does not require one, and a title company normally handles the closing. An attorney is most useful for investment deals, seller financing, land, commercial property, or any contract that does not fit the standard TREC forms.
Should I put my rental property in an LLC?
Many investors do, because a properly maintained LLC can separate the property's liabilities from your personal assets. It does not protect against your own negligence and does not replace insurance. Check the loan for a due-on-sale clause before transferring a mortgaged property.
What is an option period in a Texas real estate contract?
In the standard TREC contract, the buyer pays a negotiated option fee for a set number of days during which the buyer can terminate the contract for any reason. It is the buyer's window to inspect the property and review title and survey.
How much does a real estate attorney cost?
Cost depends on the type of matter: a contract review, an entity formation, a lease negotiation, and a title curative project are very different in scope. A partner attorney quotes the scope and fee after a free consultation with Anchor Legacy Planning.
What is a due-on-sale clause?
It is a term in a mortgage or deed of trust that lets the lender demand full repayment if the borrower transfers the property. Transfers into an LLC can trigger it, so check the loan documents before retitling.
What is title curative work?
Curative work resolves defects in a property's title, such as unreleased liens, missing signatures, or gaps in the chain of title, so the buyer can get a clean title policy. It is usually done through releases or corrective instruments before closing.
How does foreclosure work in Texas?
Texas is a non-judicial foreclosure state. A deed of trust with a power-of-sale clause lets the lender foreclose without a court case after required notices, and sales are held on the first Tuesday of the month.
Can a real estate attorney help with a joint venture?
Yes. A joint venture agreement should set decision rights, capital calls, profit splits, buyout and exit terms, and dispute resolution. If passive investors are involved, the attorney also checks whether the interests are securities.