Top 5 Legal Issues First-Time Homebuyers in Texas Should Watch For

For many Texans, buying a first home is both a dream and a milestone. But as exciting as this new chapter can be, the legal side of real estate can be complex—and first-time buyers often don't know what to watch out for until it's too late.

At The Keller Firm, we've seen how avoidable legal issues can lead to delays, stress, and costly disputes. This blog walks you through the five most common legal concerns for first-time homebuyers in Texas and offers practical guidance to help you approach your purchase with confidence.

1. Title Defects and Unresolved Liens

Before you close on a home, one of the most important steps is a title search. This process confirms the seller's legal ownership and identifies any issues that could affect your rights as a buyer. Common title problems in Texas include:

• Unpaid property taxes
• Mechanic's liens from previous contractors
• Boundary disputes
• Undisclosed heirs or claims to ownership

If not resolved before closing, these issues can jeopardize your ownership or lead to litigation down the line. While title insurance offers some protection, it doesn't cover every scenario—especially if it was discovered beforehand and you didn't object to it.

How We Help: As part of our Property Protection Package, we review your title chain, inspection report, and survey, helping you spot and resolve red flags before they become legal disputes.

2. Ambiguous or Risky Contract Terms

The standard residential purchase contract in Texas may look straightforward, but buried within are clauses that can shift significant risk to the buyer. For example:

• What happens if the seller wants to back out last minute?
• Are inspection timelines reasonable, and what happens if repairs aren't made?
• Does the contract allow the buyer to terminate and recover their earnest money?

First-time buyers may assume that agents fully explain these terms, but in practice, many legal nuances are overlooked until a dispute arises. Contracts drafted or negotiated without legal review can lead to one-sided obligations and limited remedies.

How We Help: Our attorneys walk you through every clause, helping you negotiate favorable terms and avoid contract traps that could cost you down the road.

3. Seller Misrepresentation or Incomplete Disclosures

Texas law requires sellers to disclose known material defects through a Seller's Disclosure Notice. However, not all sellers are transparent, and some may omit or downplay serious problems like:

• Past flooding or foundation repairs
• Roof damage or electrical issues
• Mold or pest infestations

If the issue isn't discovered before closing, the buyer is left to deal with costly repairs—or legal action. Under the Texas Deceptive Trade Practices Act (DTPA), buyers may sue for misrepresentation, but success depends on documentation and timing.

Tip: Document all seller communications and inspection findings. If something feels off, consult a legal professional before proceeding.

How We Help: We identify disclosure red flags and advise on your options under the Texas Deceptive Trade Practices Act if misrepresentations occur.

4. Earnest Money Disputes

Earnest money—typically 1–2% of the purchase price—is held in escrow to demonstrate the buyer's good faith. But if the transaction falls through, who keeps the money?

Disputes commonly arise when:

• The buyer terminates after the option period ends
• The seller breaches, but the terms around “default” are vague
• Contract deadlines are missed due to miscommunication

Without clear legal guidance, buyers risk forfeiting their deposit, even when termination is justified.

Tip: Keep detailed records of all key deadlines, notices, and communications.

5. Homeowner Association (HOA) Restrictions

Many homes in Texas, especially in suburban developments, fall under HOA governance. These associations can enforce rules that affect:

• Exterior modifications or improvements
• Parking and noise restrictions
• Use of the home as a rental property

First-time buyers are often unaware of the long-term obligations or potential for conflict until after closing. Disputes with HOAs can escalate quickly—and sometimes require legal intervention.

Tip: Always request and review HOA documents and bylaws before closing. Make sure they align with your plans and lifestyle.

Have questions about buying your first home in Texas?

Explore our resources or reach out to learn more about how The Keller Firm supports first-time buyers in navigating the legal complexities of homeownership.

Property Protection Package: Legal Confidence from Touring to Closing!

Our package is built specifically for Texas homebuyers who want clarity, peace of mind, and protection. Here's what's included:

·         Title, Survey & Inspection Review

·         Contract & Closing Guidance

·         Title Insurance Insights

·         Risk Awareness & Legal Issue Resolution

Buying a home is one of the biggest financial decisions you'll make—don't go at it alone. Our legal team is here to help you protect your investment at every turn.

Ready to protect your future home? Contact us at 214-775-0817 to learn more about the Property Protection Package or visit The Keller Firm.