Legal Question in Real Estate Law in Texas

Cash only, No financing

Want to buy a Run Down house. Real Estate Agent told me financing is not an option because their is property 15 to 20 feet away from the house under someone elses name. They cannot get ahold of the owner. So Agent told me if I want to sell it in the future I might have touble selling it due to Cash only no Financing. Why?and can I fix the problem if I want to purchase the home.


Asked on 2/22/08, 8:42 pm

1 Answer from Attorneys
James Waite Winters & Waite, LLC

Re: Cash only, No financing

Take a copy of the survey and title commitment to your bank and ask. Real estate agents can be great sources of information, but your lender will be the final decision-maker.

The problem could be any number of things. For example, it could be a "setback" issue (the survey should tell you how far the buildings should be "set back" from the boundaries of the lot; if the house extends over one of those "setback lines," it will be in violation of local setback regulations and may be subject to being, at least partially, torn down (though it is often possible to obtain a "variance" with respect to such issues). Lenders are often reluctant to make loans on houses that may have to be moved or torn down (but it doesn't hurt to ask - just be honest with them).

Start with the title report and survey, and go from there.

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Answered on 2/23/08, 9:24 am


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