Texas Real Estate State Practice Exam

What does the Alienation Clause in Texas real estate documents address?

1. Transfer of property ownership

2. Appraisal value determination

3. Property tax assessment

4. Property maintenance responsibilities

The correct answer is: Transfer of property ownership

The Alienation Clause in Texas real estate documents specifically addresses the transfer of property ownership. This clause allows a lender to call the entire loan balance due when the property is sold or transferred without the lender's prior consent. Its purpose is to protect the lender's interests by ensuring that they have control over who can assume the mortgage and become responsible for the loan. This clause is significant in real estate transactions because it can affect the transaction dynamics, especially in situations involving the sale or assignment of a mortgage or lease. If the property owner wants to sell their property, they must consider the terms of this clause, as violating it could lead to foreclosure or other legal consequences. The other options involve different aspects of real estate that are not directly related to the transfer of ownership. Appraisal value determination focuses on assessing the property's market value, property tax assessment pertains to the valuation of a property for tax purposes, and property maintenance responsibilities deal with the upkeep and care of the property; none of these are directly tied to the Alienation Clause itself.