 Another year has passed, and it’s one to which most of us are happy to bid farewell. The devastation of the Sept. 11 attacks and the resulting international conflicts have made all of us realize how important it is to be thankful for what we have and to stay connected to those around us.
Despite our ever-changing world, it was a good year for Texas property owners. Interest rates fell to their lowest levels in years, and many Texans took advantage of the low rates to purchase the home of their dreams. Others refinanced their homes and were able to save considerable amounts on their monthly mortgage payment – freeing up money for other things. And still others applied for home equity loans to spruce up their homes, remodel or simply pursue other interests.
Texas homeowners were also winners in the past year’s legislative session. Mary Frances Burleson, chairman of the Texas Association of REALTORS®, credits the state’s lawmakers for protecting the rights of consumers during the 2001 session.
"It’s amazing what happens in such a short period of time in the Texas Legislature, but lawmakers this past session made significant changes for Texas property owners," she says. "Consumers will reap the benefits of these changes in 2002, making it even more appealing to own a home."
In 2002, Texas property owners will be able to better protect their homes, effectively manage and communicate with homeowner associations, invest in manufactured housing, conduct real estate transactions online, and clearly understand financial paperwork when using a mortgage broker. The following consumer benefits went into effect toward the end of 2001 or on Jan. 1, 2002.
Protecting your home: home-warranty changes
In Texas and nationwide, it is common for a home seller to provide a residential service contract, or home warranty, as a benefit to the buyer. However, because of a quirk in Texas law, homebuyers could unknowingly have this coverage cancelled during the first three days after closing. Because of legislation spearheaded by the Texas Association of REALTORS®, the problem is now fixed – ensuring that home warranties become effective immediately when a buyer takes possession of a home.
Clearer communication with homeowner associations
In several highly publicized cases last year, Texans lost their homes to foreclosure because they fell behind in paying mandatory membership homeowner association fees, or violated other association rules. Texas REALTORS® supported legislation this past session to control abuse by overly aggressive homeowner associations, implementing consumer safeguards that must take effect before the association can foreclose.
Manufactured housing a consumer choice
According to the 1990 Census of Housing, manufactured housing comprised almost 13% of the Texas housing stock. In 1996, manufactured units made up more than one-third of all new Texas single-family dwellings.
According to a recent release from the Real Estate Center at Texas A&M, price is the primary reason for the increasing popularity of manufactured homes; the homes are produced for less than $30 per square foot (about half the going rate for new site-built homes). The Texas Manufactured Housing Association found the average price of a manufactured unit produced in Texas in 1996 to be $34,725 (including delivery and installation but not site, sales tax and utility hook-up).
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During that same period, the average existing home sold through multiple listing services cost $109,500 (including land), and the average new single-family unit built in Texas was valued at $103,900 (without land).
Manufactured housing is also becoming more acceptable to homebuyers and their neighbors because the quality is changing. It is now standard to make units look more like traditional houses rather than like travel-trailers.
"Manufactured housing is expected to become more popular, especially in rural areas," says Jack C. Harris, a research economist at the Real Estate Center. "This could mean that real estate agents will increasingly encounter manufactured homes in addition to traditional site-built homes."
As manufactured home owners begin to trade up, move, or look for new housing, they often find it difficult to resell – partly because of unfavorable financing terms on their original purchase. The Texas Association of REALTORS® supported legislation this past year that required consumer disclosures on financing terms, hookup fees and other costs related to buying a manufactured home – offering consumers who purchase manufactured homes more protection.
Real estate transaction for a busy world
Another pivotal piece of legislation passed in 2001 that will directly affect consumers in 2002 was the Texas Uniform Electronic Transactions Act (UETA). The act paves the way for legally valid electronic signatures – enabling consumers to save time when dealing with the mountains of paperwork required when closing a real estate transaction.
Once the last few technological and practical hurdles have been cleared, Texas REALTORS® and their clients will be able to conduct real estate transactions almost entirely via the Internet – saving consumers valuable time and certainly contributing to fewer headaches.
Making financing less complex
During the 1999 legislative session, REALTORS®, consumers, and mortgage brokers worked together to implement a licensing system and regulatory authority over mortgage brokerage businesses in Texas. However, there was still some confusion among consumers about determining the status of their loan applications.
As a result, during the 2001 session the Texas Association of REALTORS® supported legislation to introduce standardized forms for commitment and pre-qualifying letters – to help consumers better understand the loan application process. This legislation also became law Jan. 1.
All in all, 2001 was a busy year, but property owners all over Texas will reap the benefits in 2002. Have a Happy New Year!
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