A Texas homeowner closes on a home equity loan. After closing, the homeowner decides they made a mistake. Under the Texas Constitution, what right does the homeowner have?
Correct Answer
B) The homeowner has a 12-day cooling-off period during which the loan can be rescinded, with the lien not attaching until the 13th day after closing
Under Texas Constitution Article XVI §50(a)(6)(Q), a home equity loan on a Texas homestead includes a 12-day cooling-off period. The lien created by the loan does not take effect until the 12th calendar day after the date the owner signed the loan agreement, and the owner has the right to rescind the loan without penalty during this period. This is a unique Texas constitutional protection beyond the federal TILA 3-day rescission.
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More Tx Community Property Homestead Questions
Under the Texas Family Code, which of the following is NOT classified as a spouse's separate property?
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- → A Texas homeowner defaults on a personal loan of $50,000. The creditor obtains a judgment and seeks to force the sale of the homeowner's primary residence to satisfy the debt. Under Texas homestead law, can the creditor force the sale?
- → A creditor attempts to place a lien against a Texas family's homestead for an unpaid medical bill of $25,000. Under Texas homestead law, can this lien attach to the homestead?
- → A Texas homeowner converts their homestead into a rental property and moves to another state. After two years, a creditor seeks to foreclose on the former homestead for an unpaid business debt. Under Texas law, can the creditor force the sale?
- → Mark and Lisa are married and live in Texas. During their marriage, Mark purchases an investment property using earnings from his salary. Under the Texas Family Code, how is this property classified?
- → Before her marriage to David, Sarah owned a rental house in Austin. After the wedding, rental income from the property accumulates in a joint bank account. Under the Texas Family Code, how is the rental income classified?
- → Under the Texas Family Code, what is the legal presumption regarding property acquired during a marriage in Texas?
- → After 10 years of marriage, William inherits a lakehouse from his father. William's wife, Karen, assumes the inheritance is community property because they received it during their marriage. Under the Texas Family Code, who is correct?
- → Under the Texas Family Code, what is the legal term for a written agreement between spouses that converts community property into one spouse's separate property?
- → Under the Texas Family Code, what happens to community property when one spouse dies without a will in Texas?
- → A Texas couple gets married. The wife owns a car free and clear that she purchased three years before the wedding. Under the Texas Family Code, what is the classification of this car?
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Previous Question
Under the Texas Constitution Article XVI §50, a homestead may be subject to forced sale for certain types of liens. Which of the following liens can NOT lead to forced sale of a Texas homestead?
Next Question
A married couple in Texas decides to permanently relocate from their homestead in Dallas to a new home in Houston. They rent out the Dallas property but do not officially declare a new homestead. Under Texas law, when does the homestead protection on the Dallas property end?