With rent prices skyrocketing in Austin and its surrounding communities, more and more homeowners are becoming landlords to accommodate the hundreds of new arrivals to Central Texas each day. Conversely, more and more new residents in Austin are turning to websites such as Craigslist and other similar resources to find rental homes.

And while it may seem like we’ve entered into an age of tear down and build up condominiums, there are plenty of older homes available for rent that have traditionally been used for owner occupied purposes. With the leases often being signed without the aid of agents, it is important for both Landlords and Tenants to know how to protect themselves, each in their own way.

What this means is that a home is not necessarily a rentable home under the Texas Property Code. As a landlord you (or your LLC if you’ve ventured into landlordship correctly to limit your liability) have certain obligations to those who rent from you.

First and foremost is that the home you’re providing is safe. What does this mean? Section 92.153 of the Texas Property Code line items certain security devices that must be installed on every property, without the requirement of a tenant request. While certain loopholes do exist (don’t they always when we’re talking about the law) the necessary items for a basic rental is:

1. (1) a window latch on each exterior window of the dwelling;
2. (2) a doorknob lock or keyed dead bolt on each exterior door;
3. (3) a sliding door pin lock on each exterior sliding glass door of the dwelling;
4. (4) a sliding door handle latch or a sliding door security bar on each exterior sliding glass door of the dwelling; &
5. (5) a keyless bolting device and a door viewer on each exterior door of the dwelling.

While locks are almost assumed to be part of the rental house the law demands more than a simple keyed lock. The list is simple in its language, but demanding in its requirements—older homes often have no latches on each exterior window or door viewers on each exterior door of the dwelling. The same could be said for a keyless bolting device that can only be unlocked from someone inside the house. While newer builds regularly meet these requirements by default in order to be up to code older homes too often slip through the cracks on these requirements.

What does this all mean? It means if you’re a landlord whose property doesn’t meet these requirements, you’re in violation of the law. More importantly, you’re holding onto a lease that is a mere three days from being a toast. What does it mean if you’re a tenant? It means that you have a black and white termination of your lease should these requirements fulfilled.

Section 92.164 explicitly deals with deficiencies relating to section 153’s requirements and 92.164(a)(2) is the most important. It states that if a landlord does not comply with the re-keying or installation of a security device, then a Tenant may serve a written request for compliance on the landlord. If the landlord fails to comply within three days of receiving notice, then the tenant may “unilaterally terminate the lease without court proceedings.” Texas Property Code § 92.164(a)(2). That timeline may be extended to seven days, depending on the notice requirements included in the lease.

In most situations the exceptions do not apply, but the devil is always in the details. Assuming, however, that this is a common lease, with no notices, and no special needs of the tenant, then a properly noticed request can terminate a tenant’s obligations remarkably fast.

Pitfalls to avoid as a tenant include demonstrating that notice was given and actually received—this can be accomplished via email if agreed to in the lease, but many Leases require notices to be delivered to a specific address designated in the Lease. Sending an uncertified letter also opens the doors to questions of delivery. To ensure proof of delivery, delivering the notice via certified mail, return receipt requested and actually receiving the return green card is the best practice before terminating the lease. A follow up notice stating the termination, and grounds for it, is also recommended upon surrender of the property. Be sure to include your forwarding address for your security deposit!

For the Landlord, this expedited timeline can come as quite a surprise and cause quite a circus to unfold quickly. Failing to immediately address the situation can only exacerbate the problem. Door viewers and latches on all windows aren’t the easiest and cheapest additions, but they are the cost of doing business as a Landlord. Should the unthinkable happen, and notice is received with no time to react, there are savings clauses, however they all require the documented demonstration of diligence in attempting to rectify the problem. In other words, a Tenant cannot demand the installation, and then refuse entry into the property (but it is on the landlord to have that correspondence showing that they tried).

Like all laws, rules, and leases, the right to do something is countered by the right to disagree with doing it. The pitfalls in using this unilateral termination are numerous, and even the most by the book termination can still result in a breach of contract claim. Landlords be wary though! A retention of a security deposit in the face of a permitted termination can expose you to three times the deposit as damages!

For more answers and guidance on these issues, contacting an attorney is always recommended. An ounce of prevention-whether it be in compliance, corrections, or terminations, can go a long way to prevent undue headache and distress.

Values in Central Texas and all across the State are on the rise, what does this mean for your ad valorem taxes, commonly referred to as property taxes? It means that the appraised value, the value by which the County derives your tax bill at the end of the year, is likely higher than it was in 2013. Most people do not understand where and how this value is calculated. Below is a brief summary of the process related to Travis County, but it is the same for the county where you own property in Texas.

First, how is the value to your property calculated? The county determines values by the county’s appraisal district. In Travis County this is the Travis Central Appraisal District (“TCAD”), a website where you can search for values and other information for properties as well as gather forms and related information from TCAD. Their website is informative and easy to navigate, but be aware many counties are behind the curve. The appraisal district is charged with valuing property and generally their information comes from a few places. First, TCAD monitors recorded documents as they are posted with the Travis County Clerk. These include your deed and deed of trust among other things. It is important to not place the sales price in a deed, which sometimes is done in a cash situation. Second, when you buy a property TCAD will send you an information statement asking kindly to disclose what you paid for the property. YOU ARE NOT REQUIRED TO COMPLETE THIS FORM and I suggest that you rarely do as it provides unnecessary information that may be used to your disadvantage down the road. Thirdly, TCAD uses its own eyes, through monitoring of building permits and improvements, to set values based on its own observations. With all that being said, the values are set by applying blanket factors or codes relating to such as lot and structure size, neighborhood, condition, proximity to freeways, and green space just to name a few, stirring them in a big pot, and out comes your value. As improvements are made or codes for the neighborhood are changed, so does the method by which your appraised value is calculated. Thus, sometimes you may see a large jump or decrease in your value that on the face may look to be not commiserate with your perception of the value.

Second, how do I fight or correctly termed, PROTEST, the value placed on my home by the appraisal district? Important, as time is of the essence for most protests being filed of May 31st of the calendar year. The filing of the protest is fairly simple. You must first complete the Protest Form which is the same for each county, just be sure to change the information on the top of page one to that for your appraisal district. With this protest you only have to complete the minimum, rarely does the County simply change your value based solely off the information completed here without at least an informal hearing. Once you complete the protest form the next step is to gather all your data and information to present your case. You will be notified of the date for both an informal and formal hearing date. The informal hearing is just what it sounds like, a situation where you sit down with a representative of the appraisal district and discuss your value and upon agreement, settle on an agreed value. You are not required to go to or notify the county if you will/will not attend the informal hearing. The next phase if you do not settle or attend the informal hearing is the formal hearing. Here, a panel of three people who serve on the appraisal review board act as the “judges” to conduct the proceedings, listen and to and weigh your evidence, the evidence and rebuttal of TCAD’s appraiser, their own observations, personal knowledge and other factors to decide on a value, including deciding to not change your value. This values is made up of a land value and an improvements value, both of which combine to be your appraised value. Generally, the county is hesitant to make changes in the land value, so you likely will see a change in the improvements.

Should I hire a professional to handle my affairs as related to a property tax protest? That is a decision you will need to make and to be clear, different firms operate in different ways, and ultimately decide if you think that a professional can get the same or better results, without you having to spend the hours it takes to complete the protest process. Some provide their services at a flat fee value while others charge a % of your savings. You should weigh out your goals and the experience and approach of each organization to decide what is best for you. My company provides these services on a flat fee basis and this fee includes a full appraisal done by a licensed appraiser. My approach with the process is to not argue that every property is overvalued thus discrediting my team with the review board, but to gather real, quantifiable data and present an argument that the board can grab on to and understand. I have found over the years that this proves to be the best approach leading to, in many cases, savings for our clients. Important, each property and matter is different and there is no way to predict results. Should you hire someone to handle your taxes, you would complete the Appointment of Agent form and just as before, you would need to change to your appraisal district on the top of the form. I think the best practice is to be sure the date at the end of Step 4 is 12/31 of the current calendar year. For example, for the current year 2014, the date entered would be 12/31/2014. This will limit the time which the person or company represents you and allow you to each year make the decision of who to hire, if anyone, to represent you. For more information on our Firm and how you can engage us to represent you in your real property matters, please contact Brittani Bell who can assist in getting you the engagement documents.

Most startup nonprofit organizations in Texas are structured as nonprofit corporations under Chapter 22 of the Texas Business Organizations Code, though recent years have seen more use of the newer nonprofit unincorporated association structure codified in Chapter 252 of the Texas Business Organizations Code. This article briefly explains the key aspects of both structures and discusses their practical suitability for various nonprofit enterprises.

Legal Capacity
Nonprofit corporations and unincorporated nonprofit associations have similar capacities. Once formed, a nonprofit corporation may, among other things, make contracts; lease, acquire, hold, and transfer both real and personal property; sue and be sued; and serve as a beneficiary to a trust, contract, or will. Nonprofit unincorporated associations share these powers, though Texas law imposes some specific procedural requirements that must be fulfilled after entity formation before all powers can be fully exercised.

Liability
A nonprofit corporation’s board of directors and employees are protected in those roles from personal liability for the corporation’s breach of contract and its tortious acts and omissions. Its volunteers may also have limited protection from liability as set forth in the Charitable Liability Immunity Act found in Chapter 84 of the Texas Civil Practice and Remedies Code. Texas law further requires that a nonprofit corporation indemnify its governing persons for reasonable expenses should they successfully defend a lawsuit filed against them in their corporate role and optionally allows for indemnification under other circumstances if the governing person acted in good faith. With respect to a nonprofit unincorporated association, Texas law states that its members and managers are not liable in contract or tort for the association’s conduct “merely because” the person is a member or manager. A nonprofit unincorporated association’s volunteers may also have limited protection from liability, but only if the nonprofit unincorporated association satisfies specific annual funding requirements. Texas law does not require an unincorporated nonprofit association to indemnify its managers.

Formation, Record-Keeping, and Reporting Requirements
The most significant difference between nonprofit corporations and unincorporated nonprofit associations is in the documents required to form and operate them. Nonprofit corporations are subject to strict formation, record-keeping, and reporting requirements, a detailed discussion of which exceeds the scope of this article. In contrast, there are no set requirements for the formation of an unincorporated nonprofit association beyond the mutual consent of three or more members joined in a common nonprofit purpose. Unincorporated nonprofit associations have no mandatory reporting requirements, though they must keep correct and complete financial records for at least three years beyond the current fiscal year and make those records available to members. Of course, the fact that Texas law does not require unincorporated nonprofit associations to create formal organizational and operational documents does not mean that doing so is any less prudent from a risk-management perspective.

Tax-Exempt Status
Both nonprofit corporations and unincorporated nonprofit associations may receive tax-exempt status from the IRS under Section 501(c)(3) of the Internal Revenue Code. But because the IRS apples the same standard to all nonprofit organizations, an unincorporated nonprofit association seeking 501(c)(3) status must provide articles of organization, financial information, and other organizational and operational documents even though these documents are not required by Texas law.

Practical Considerations
The benefits of an unincorporated nonprofit association center on its simplicity to form and operate. But selecting this structure comes with significant drawbacks. It’s been less than 10 years since the Texas Legislature codified the Uniform Unincorporated Nonprofit Association Act in Chapter 252 of the Business Organizations Code. The body of law interpreting Chapter 252 is thus comparatively smaller, younger, and less certain than that governing nonprofit corporations. Unincorporated nonprofit associations may also encounter difficulty transacting business with third parties due to unfamiliarity with the entity structure. This becomes even more complicated when doing business across state lines since not all states recognize unincorporated nonprofit associations as legal entities. The simplicity of the unincorporated nonprofit association can also serve as a double-edged sword as it lacks a scaffolding to manage internal strife and allows easy drift from the organization’s mission as conceived by its founders. Finally, the ease of formation and operation associated with unincorporated nonprofit associations evaporates when seeking 501(c)(3) status. Thus, unincorporated nonprofit associations are generally appropriate only for small, informal organizations that lack the resources to incorporate, engage in minimal third-party business transactions, and bring in so little money that they do not need to obtain federal tax-exempt status. In most circumstances, the better choice is to operate as a nonprofit corporation, which is well- suited for almost all types of nonprofit enterprise.

Your choice of entity structure is one that should be made carefully. For those considering the launch of a nonprofit with special considerations such as for-profit hybridization, multinational operation, or the need for asset management with strict mission adherence, alternative or more sophisticated corporate structures may be merited. If you would like our assistance with launching your nonprofit, please don’t hesitate to contact us.

Ask ten people about ad valorem, or more commonly referred to as property taxes, and ten will tell you that they wish they could pay less. Believe it or not, of those ten, I would bet several may not even be taking advantage of one of the easiest savings mechanisms, the Homestead Exemption under the Texas Tax Code. As one of the largest ongoing expenses related to owning real estate in Texas, the savings related to the Homestead Exemption could be hundreds if not even thousands of dollars. As a general rule for most taxing jurisdictions in Texas, if you purchase a property that you also occupy as your primary residence, you may file for a Homestead Exemption. You must file the application no earlier than January 1 of the year following your purchase through April 30 of that same year. If you miss filing you will likely not be able to apply again until the next year, thus being subjected to a higher tax burden than you may have been had your application been filed timely.

Did you buy your residence last year or in a previous year? Then you are due to file your exemption NOW before April 30 of this year.

How do you quickly, easily and most importantly correctly apply for your Homestead Exemption? Follow the following easy steps no matter what county your residence is located in:

1. 1. Download the universal fill in the blank Homestead Exemption form;
2. 2. Determine the appropriate mailing address information or your specific county;
3. 3. Take time to complete the application thoroughly;
4. 4. Important: You must send two additional documents with the application: First, a copy of your Texas driver’s license or state identification card and second a copy of your vehicle registration receipt. These must be sent with the homestead application and the address on those documents must match the address for which the homestead exemption is requested. If you do not have your vehicle registration receipt, you may contact your local tax collector’s office and they should be able to mail/fax/email you a copy, depending on their internal policies.
   Note: If you do not own a vehicle, you may submit a copy of your utility bill along with the executed affidavit in the application.
5. 5. Mail your complete and executed application to your county appraisal district. It is best to always send matters such as this via certified mail, and comes with only a minimal extra cost. This will allow you to show the county the postmark and delivery date of your application should it get lost or misplace in their system.

This is not the time to discuss or send information regarding the appraised value of your property to the county. This is during the protest period once you receive a notice of appraised value. Look for upcoming information from our office in the coming months.

It is no secret that Texas is experiencing a huge energy boom that shows no signs of slowing down. The Cline Shale in West Texas is just in the early stages of production but across the State oil and gas remains big business in traditional areas such as the Permian Basin and East Texas. Steady prices and increased demand are pushing exploration into new areas with little or no oil and gas production history. The Eagle Ford formation in South Texas was first explored only five years ago, and is now producing around one- hundred thousand barrels of oil each month.

A basic principle of oil and gas law in Texas is that the mineral estate - including the oil and gas existing in formations below the surface of the ground - can be severed from the surface estate. This is important to anyone that owns rural property in Texas because many landowners and homeowners in Texas have no idea that they do not own any or all of the mineral estate. Even homeowners in urban areas can be affected; the Barnett Shale activity in and around Fort Worth includes several populated subdivisions. Further complicating these issues, the mineral estate can be split into several interests, and these interests often spread among hundreds and sometimes thousands of different interest owners.

The Hay Legal Group PLLC prepares detailed title opinions and reports for many landowners, prospective buyers of all kinds and oil and gas exploration companies. Title work is vital to oil and gas projects because land companies and operators must know who to obtain oil and gas leases from, and if operations are successful, how to pay royalty on the produced oil and gas. With the increase in oil and gas activity we are involved in title work for buyers and sellers of farm and ranch properties all across Texas. As the mineral estate becomes more valuable, farm and ranch transactions can change significantly based on whether the property comes with the mineral estate, and if so, how much of the mineral estate is conveyed. There are many considerations that can alter such a transaction, such as whether an oil and gas lease burdens the land, the rights and liabilities of the surface owner, the mineral estate owner, and any oil and gas operators, and many other “what ifs” related to the ownership of the mineral estate. Many surface interest owners do not realize that an oil company may have the right to use the surface if they have the signature of only one mineral interest owner, even if the landowner never signed an oil and gas lease with them. If you are considering buying or selling rural property in Texas, you will find that knowing the history of the ownership of the mineral estate in that property will be to your bargaining advantage.

If you are involved in the purchase or sale of a farm and ranch transaction or represent someone that is, strongly consider performing oil and gas title work when determining purchase price and negotiating the deal.

While we at Hay Legal Group, hope you never need the following advice, in the event you do, we have asked Hank Stout, a personal injury lawyer, to give you some tips about what you should do if you find yourself involved in a car wreck in Austin.

Most Texans will be involved in at least two car accidents over the course of their lifetime. In fact, according to various insurance studies, you are likely to be involved in a car accident at least every 18 years. This fact combined with the fact that, according the Texas Department of Public Safety, there was a person injured in a car wreck every 2 minutes and 17 seconds in 2012, it is helpful to know what you should and should not do if you have been involved in an accident.

The following are some suggestions that will help you if you have been involved in a collision:

Move your cars from the lanes of traffic.
Before exchanging information, you should ensure that your accident does not cause an additional collision. If the collision is a minor fender-bender, the law says you must move your cars from the lanes of travel. But do not try to move your car if you cannot do so without causing addition damage or if someone is injured.

Watch What You Say
After a collision, you should speak to the other driver only to get his or her insurance information, contact information and to make sure the other person is not injured. Do not say it was your fault or that you did not see the person coming.

Gather Information
In order to file your claim with the insurance company, you will need certain information to start the process. The following is some of the basic information you will need:

• Name of the other person involved in the collision and his or her contact information;
• Name and phone number of his or her insurance company;
• The insurance policy number (ask to see the insurance card to make sure the person driving is listed on the insurance policy);
• The exact location of the collision; and
• The licenses plate number of the other vehicle.

If possible, you should also try to get the name and contact information for any witnesses. It is also helpful to take pictures and video of the scene and the vehicles involved in the collision. Finally, make sure to get all of the information for the investigating officer including his full name, badge number, and phone number.

Put the Insurance Companies on Notice
Don’t wait to call your insurance company to start your claim. In fact, we recommend that you call both insurance companies so that there is no issue down the road with putting them on notice of your claim. When speaking to the insurance companies, remember that they are not your friends regardless of how nice they might seem. Also, while you may have to give a statement to your insurance company, you have every right not to give a statement to the other party’s insurance company. In fact, we suggest that you not give a statement to the other party’s insurance company.

Get Checked Out by Qualified Doctors.
If you are hurt or feel pain after a collision, we suggest you go see a doctor right away. Also, it is our experience that while chiropractors seem like a less expensive option in the long run you are better off if you go see an actual doctor to get checked out.