Free CE: Farm and Ranch Contract

Focus on the Farm and Ranch Contract
Taught by Bradley Tiegs
Sponsored by Old Republic Title and Texas Professional Inspections
18 May 2026 @ 10 a.m.
KW North Country
1212 S. Preston Rd, Training Room (2nd floor)
Celina TX 75009
972-382-8882 (for more information)

The TREC Farm & Ranch Contract has multiple key differences from other TREC contracts. Learn those differences to protect your clients and yourself from contract errors and omissions.

The 1-hour course welcomes and provides Free CE for any licensed agents and brokers from any brokerage. All others welcome for no CE credit. No strings attached. Scan the QR code to see the entire schedule or go to this link.

I've Got Your Six!

Mark M. Hancock, GRI, MRP, AHWD
REALTOR, New Build certified
214-862-7212 (call or text)
DFWmark@kw.com
DFWmark.com

#DFWmark #FreeCE #RealEstate #farm #ranch #contract

Texas Land Considerations

Texas has a lot of land to sell and conditions to consider. Buying land in Texas is different than buying a house. In addition to using different contracts, land use and size dictates which contract will be used.
A small unimproved parcel of land will probably use an Unimproved Land contract while a larger tract of land with buildings on the property is most likely to use a Farm and Ranch contract, which allows for price changes based on surveyor results. Throughout the process, Buyers need to be careful where they step – especially around cows.
Thorough due diligence and consultation with relevant professionals are essential for Texas land buyers to make informed decisions and mitigate potential risks associated with purchasing land. Buyers are ultimately responsible for what they choose to purchase. Let’s examine some ways to avoid pitfalls along the way to land ownership.

Zoning and Land Use
How a Buyer intends to use the land is a vital decision before anyone looks for land. Will there be animals, a mobile home, a house, two houses, a workshop, a business, a camper trailer, an industrial truck, or any farm equipment? Each of these can be a potential problem for the land buyer.
Zoning regulations can vary widely between urban, suburban, and rural areas. Be clear about the use of the land to find the right land.

Location
Texas is a vast state with diverse landscapes from swamps to deserts, so buyers should consider the specific region and its annual rainfall, proximity to amenities, employment opportunities, schools, transportation, paved roads and other important facilities.

Deed Restrictions
Deed restrictions are conditions set upon the land to future landowners. Most of these conditions are limitations of use. The most common deed restrictions do not allow mobile homes, secondary homes on the same property, no large trucks or trailers, limited animals, or a restriction of animal size.

Topography and Soil Quality
The land's topography and soil quality can significantly impact its potential uses, such as agriculture, development, or recreational activities. Buyers should assess these factors along with a “soil sample” (test) to determine the suitability of the land for their intended purposes.

Access and Easements
Access to the property and any existing easements for roads or utilities should be clarified to ensure that buyers have legal access to their land and that there are no encroachments or restrictions that could affect their use of the property.

Mineral Rights
Mineral rights can be sold separately (severed) from land or conveyed with the land. Many sellers may want to retain some or all of their mineral rights when they sell the land. This is part of the negotiation process of buying the land.
More frequently, a seller doesn’t know if they even own the mineral rights. A “Landman” must be hired to investigate and determine who owns the mineral rights under any specific plot of land. This isn’t a cheap project, which is why most people don’t know if they own the mineral rights under their land. Most landmen are part of the AAPL (American Association of Petroleum Landmen).
If another person or entity owns the mineral rights under the land you purchase, the mineral rights are considered “dominant,” and the landowner must give the mineral rights owner access to extract their products including surface products such as soil, sand and water.

Water Rights
There are two broad categories of water rights in Texas: groundwater and surface water.
Groundwater is “water percolating below the surface of the earth” according to the Texas Water Code. If there are no other agreements, landowners own the groundwater beneath their property. A severed groundwater right is also the dominant estate in Texas.
Surface water collects on top of land. When a piece of land has a creek, river or lake on the land, the water itself is not necessarily owned by the landowner. According to Texas A&M AgriLife Extension, “The State of Texas owns surface water and a permit from the Texas Commission on Environmental Quality (TCEQ) is generally required to divert state-owned surface water.” A TCEQ permit allows the holder to use a designated amount of water for a designated purpose.

Cash or Financed?
Cash is always king in real estate. Cash makes the entire transaction easier. Without lenders involved, the buyer can accept the property in any condition, can close as soon as the ink is dry on the contract and can often negotiate extra concessions from the Seller.
All deals – including cash and Veterans Administration (VA) loans will require about 2.5% of the sales price for closing costs.
Financed
Buying land through a lender has higher hurdles than a cash purchase. The lender will most often require the borrower to pay 20% down on a 15-year mortgage. Additionally, not all lenders are willing to make land loans. Buyers will need to find lenders willing to finance land loans. The land must also appraise for the sales price or less. Otherwise, the buyer will be required to pay the difference in cash – even if a significant down payment was paid.

How much land?
Many land lenders will also require the land to be more than 10 acres. A few credit unions will allow loans for less than five acres, but most land lenders are interested in 10 or more acres.
That said, agriculture tax exemptions can occur on as little as five acres anywhere in the state of Texas if the land has active bee hives. However, most counties will require at least 10 acres for an “ag exemption.”

Exempt or Not
As mentioned above, land can be exempt. I’ve written an entire post about exemptions, but the most likely use of land is for an ag exemption. The land must be “productive” to earn an ag exemption. Furthermore, it must be productive for at least five years before it is granted an exemption by the county.
Buyers should check with the county Central Appraisal District (CAD) to determine if specific land already has an exemption or will qualify for one.

Surveys
Most urban surveys are based on a Lot and Block system and platted at the city. Meanwhile, rural surveys are more likely to use a Metes and Bounds system, which measures distances from specific stakes or landmarks.
Obtaining a survey of the property and verifying its boundaries is essential to ensure that buyers are purchasing the correct parcel of land and to avoid any boundary disputes in the future.

Utilities
The most common utilities are electricity, natural gas, water, sewage, cable and internet connectivity. Land that has access to all utilities will often cost more because buyers will otherwise need to pay utility companies to bring those utilities to the property – at a cost per linear foot.
Depending on the governing jurisdiction, electricity, water and sewage may be required before a certificate of occupancy is authorized. If a water well, septic tank or propane tank are needed due to a lack of infrastructure, ensure it’s legal at that location according to all controlling governmental entities.

Water
Water can be supplied by a city, a water district, a water well or even a water service. City and water districts often have the lowest starting cost. Depending on the land, a water well can be extremely expensive and could be illegal. You can know more about water here.
If water isn’t currently at the property, a water line may need to be installed across another property owner’s land. This will create a need for the Buyer to acquire a Right of Way Easement from each landowner between the Buyer and the water supply if a water line doesn’t already exist.

Sewage
Rural areas may require a septic system to handle sewage. If a septic system currently exists on the property, an Information About On-Site Sewer Facility form will be required to convey the land. Sewage is often handled by the city in urban areas. Many cities will not allow septic systems.

Environmental Considerations
Buyers should conduct environmental assessments to identify any potential hazards or restrictions on the property, such as flood zones, wetlands, endangered species habitats, or contamination from previous land uses.

Future Development Plans
Buyers should research any potential future development plans or infrastructure projects in the area that could impact the value or use of the land.

I've Got Your Six!

Mark M. Hancock, GRI, MRP, AHWD
REALTOR, New Build certified
214-862-7212
DFWmark.com

#DFWmark #REALTOR #MarketWatch #ResidentialMarket #LeaseMarket #RealEstate #Sold #NewListings #Pending #Leased

Land Fly By in McKinney

 

Keller Williams North Country agents visited a 4.12-acre property in the Hidden Hills Addition of McKinney in Collin County as part of a tour of ranches. The land is within the McKinney extra-territorial jurisdiction and zoned for attendance in the Celina ISD. Co-op electricity and city water are available. The heavily wooded property will need a septic system.

The unimproved property - MLS# 20304244 - is listed at $695,000 by Carissa Buchanan. If you’re interested in purchasing the property or any other land in North Texas, please call, text or email me immediately!

I’ve Got Your Six!

Mark M. Hancock, GRI, MRP, AHWD
REALTOR, New Build certified
214-862-7212
DFWmark.com

#DFWmark #REALTOR #McKinney #HiddenHills #land #ranch #drone #FlyBy

Get Real Estate Tax Exemptions 2023

There is no Texas state property tax. Property taxes are assessed and administered locally. Tax exemptions remove part of a taxable asset’s appraised value from taxation. This reduction saves money for the taxpayer.

For example, a $100 asset with a 10% tax exemption would be taxed as if it was only worth $90. If the tax on this item was 2.5%, the tax would move from $2.50 to $2.25. Those quarters add up quickly for real estate.

Real estate has a variety of tax exemptions available depending on the property use and condition of the property owners being taxed. Exemptions differ by state. In Texas, exemptions also differ according to the taxing authority such as counties, municipalities, schools and special districts.

A common property exemption in Texas is the Homestead Exemption (HS). Additional exemptions include Agricultural/Timber use, Solar and Wind-Powered Energy Device or Charitable Organizations and Businesses. Each taxpayer has different circumstances. Get advice from a tax attorney or Certified Public Accountant for your specific needs. Apply for most exemptions through your county Central Appraisal District (CAD) by April 30..

Please follow the link for additional information and guidelines.
Homestead Exemption Information
Agricultural/Timber Exemptions
Solar, Wind-Powered and Biomass Energy Devices
Charitable Organizations and Businesses

These are the Comptroller links to DFW metro counties:
Collin, Dallas, Denton, Ellis, Fannin Johnson, Kaufman, Rockwall and Tarrant

These are the Central Appraisal Districts (CAD) for DFW metro counties
Collin, Dallas, Denton, Ellis, Fannin, Johnson, Kaufman, Rockwall, and Tarrant

Homestead Exemption Information Back to Top

Homestead Exemptions remove part of your home’s value from taxation, protect against some creditors and more. In short, they lower your property tax payment. The amounts vary by county. All Texas homesteads receive a mandatory $100,000 exemption on the home’s value from school property taxes (changed to reflect newest numbers). Other local entities, like cities and counties, offer a separate residence homestead exemption. A homestead exemption can typically save a homeowner 10% to 20% on their property taxes.

The 10% Cap is an annual tax limit on homestead properties. Taxing authorities are limited to a 10% increase of the appraised value of a residence homestead from one tax year to the next. If the appraised value is 50% higher than the previous year, this difference could increase by 10% yearly over five years (longer if the appraised value continues to increase) with a “gap year” for new homeowners.

Only homesteaded properties get this benefit. Income-generating properties with tenants and properties owned by businesses are not eligible.

Conditional exemptions are determined by the property owner not the land. The individual conditions will require documentation and may allow a partial percentage or total exemption. The conditional exemptions include Age 65 or Older, Disabled Person, 100% Residence Homestead Exemption for Disabled Veterans, Surviving Spouses of an Armed Services Member Killed in the Line of Duty, Surviving Spouse of a First Responder Killed in the Line of Duty, or Donated Residence of Partially Disabled Veteran (or surviving spouse).

Here’s what you need to know to claim your exemption:

• There is no fee to file through your county’s tax appraisal office. Don’t pay a company to do this for you.
• The home must be your principal residence.
• You must have a valid copy of a Texas driver’s license or identification card that matches the homestead address.
• Homestead exemption applications are due by April 30.
• Application for homestead exemption is available at the county appraisal district (CAD).
• You can now file for the exemption immediately after purchasing the home and obtaining Texas identification with that address to get a prorated exemption.
• Homestead owner must be an individual (not a corporation or business entity).
• If the individual lives in a dwelling, a homestead can be a separate structure, condominium or mobile home located on owned or leased land.
• You only need to file once unless you move or get a notice from the chief appraiser.

Additional information
Texas homeowners who qualify for a homestead exemption can file for the exemption immediately after purchasing the home and obtaining Texas identification with that address to get a prorated exemption. However, the cap doesn’t start until the homestead has been in place for more than one year – a so-called “gap year.” 

Texas homestead exemptions from counties, schools, cities, and special districts reduce the property taxes for the homeowner. The amounts vary from county to county. All Texas homesteads receive a $100,000 exemption (a change from $25K in 2022) on their home's value from school property taxes. Other local entities, like cities and counties, offer a separate residence homestead exemption. A homestead exemption can typically save a homeowner 10% to 20% on their property taxes.

Take Advantage of Homestead Exemptions from the Texas Comptroller

One of the easiest ways a homeowner can lower his or her property tax bill is to file a homestead exemption. A homestead is generally the house and land used as the owner’s principal residence on Jan. 1 of the tax year.

Homestead exemptions reduce the appraised value of your home and, as a result, lower your property taxes. To apply for an exemption on your residence homestead, contact the (NAME) Appraisal District.

Available homestead exemptions include:
• School taxes: All homeowners may receive a $100,000 homestead exemption for school taxes.

• County taxes: If a county collects a special tax for farm-to-market roads or flood control, a homeowner may receive a $3,000 homestead exemption for this tax.

• Age and disability exemptions: Individuals 65 or older or disabled as defined by law may qualify for a $10,000 homestead exemption for school taxes, in addition to the $100,000 exemption available to all homeowners. Also, any taxing unit may offer a local optional exemption of at least $3,000 for taxpayers age 65 or older and/or disabled. Older or disabled homeowners do not need to own their homes on Jan. 1 to qualify for the $10,000 homestead exemption. They qualify as soon as they turn age 65 or become disabled.

• Taxing units may offer a local option exemption based on a percentage of a home's appraised value. Any taxing unit can exempt up to 20 percent of the value of each qualified homestead. No matter what percentage of value the taxing unit adopts, the dollar value of the exemption must be at least $5,000.

• Partial exemption for disabled veterans: Texas law provides partial exemptions for any property owned by disabled veterans, surviving spouses and surviving children of deceased disabled veterans. This includes homesteads donated to disabled veterans by charitable organizations at no cost or not more than 50 percent of the good faith estimate of the homestead’s market value to the disabled veterans and their surviving spouses. The percentage of service-connected disability determines the exemption amount.

• 100 Percent Residence Homestead Exemption for Disabled Veterans: A disabled veteran awarded 100 percent disability compensation due to a service-connected disability and a rating of 100 percent disabled or of individual unemployability from the United States Department of Veterans Affairs is entitled to an exemption from taxation of the total appraised value of the veteran's residence homestead. Surviving spouses of veterans who qualified for this exemption or who would have qualified for this exemption if it had been in effect at the time of the veteran’s death are also eligible with certain restrictions. The residence homestead application must be filed if this exemption is claimed.

• Surviving Spouses of Members of the U.S. Armed Services Killed in the Line of Duty: The surviving spouse of a member of the U.S. armed services who is killed or fatally injured in the line of duty is allowed a 100 percent property tax exemption on his or her residence homestead if the surviving spouse has not remarried since the death of the armed services member.

• Surviving Spouses of First Responders Killed in the Line of Duty: The eligible surviving spouse of a first responder killed in the line of duty is allowed a 100 percent property tax exemption on his or her residence homestead if the surviving spouse has not remarried since the death of the first responder.

For more details on homestead exemptions, contact the Central Appraisal District (CAD) at the links below. The homestead exemption application is available online at:
comptroller.texas.gov/forms/50-114.pdf

You may file an exemption with your appraisal district for the homestead exemption up to two years after the taxes on the homestead are due. Once you receive the exemption, you do not need to reapply unless the chief appraiser sends you a new application. In that case, you must file the new application. If you should move or your qualification ends, you must inform the appraisal district in writing before the next May 1st. A list of appraisal district addresses and phone numbers is available online.

Agricultural/Timber Exemptions Back to Top

Agricultural/Timber Exemptions (guidelines and resources)
     Application for 1-d-1 (Open Space) Agricultural Use Appraisal (auto download PDF)

Agricultural/Timber Exemption is a “special valuation.” It requires five or more years of agricultural production. The land is valued based on production rather than market value.

Each Texas county determines the minimum acreage for this exemption. Most counties require 10 acres. However, honeybees only require five acres minimum across all of Texas with a maximum of 20 acres dedicated to bee production. Bees can be leased but can cost more than hive ownership.

Technically called “Open Space” or colloquially “Ag exempt,” it requires some form of work, land preparation and stewardship. It removes a much larger appraisal valuation than a homestead exemption. It can be applied adjacent to a HS exemption for additional savings. Contact your county CAD for rates.

Solar, Wind-Powered and Biomass Energy Devices Back to Top

Solar, Wind-Powered and Biomass Energy Devices (auto download guidelines PDF booklet)
     Form 50-123 for exemption (auto download PDF)

Solar, Wind-Powered and Biomass Energy Devices provide a significant property tax exemption (Texas Tax Code Sec. 11.27) for the value of solar-collection property within guidelines with on-site devices for electrical production or storage.

Residential property owners must own the property and energy system on January 1 of the taxable year. Leased systems do not qualify for an exemption. Property owners apply to their CAD with supporting documents to detail the installation date and total kilowatt output of the system.

Solar energy devices installed or constructed after 2013 and used for a commercial purpose are subject to the cost method of appraisal. The depreciated value must be calculated using a useful life of 10 years or less.

To claim this exemption, fill out Form 50-123, “Exemption Application for Solar or Wind-Powered Energy Devices” and contact the Texas Comptroller’s Office for guidelines.

Charitable Organizations and Businesses Back to Top

Charitable Organizations and Businesses
     Form AP-199 (auto download PDF)

Charitable Organizations and Businesses engaged primarily in charitable activities may be eligible for local property tax exemptions. A corporation may be eligible for a local property tax exemption if it meets specific criteria including land title held by an IRS Section 501(c)(2) entity and releases all income, less expenses, to qualify as a charitable organization.

An organization must apply for a “Determination Letter for Property Tax Exemption” from the Texas Comptroller’s office and complete Form AP-199.

I've Got Your Six!

Mark M. Hancock, GRI, MRP, AHWD
REALTOR, New Build certified
214-862-7212
DFWmark.com

Testimonial - Whitewright

Thank you again for trusting me and allowing me on your journey! It has been my honor to guide you through the process of this real estate transaction. We put on our boots and had some laughs along the way!

Whenever you need me in the future, I’m here for you.

“Our experience with Mark has been top notch! We always looked forward to viewing properties with Mark. He has been an incredible resource and friend during mine and my husband's search for land to build our forever home on.

He went above and beyond for us in every aspect, and his wealth of knowledge truly made this first-time experience for us a breeze. Mark is trustworthy, enjoyable to be around, timely, and one of the best in the field. If we had questions he didn't have an answer to, he always sent us to the right place to get those questions answered, particularly soil-related questions and specifics about AG exemptions. He even went out of his way to make phone calls to internet companies to ensure potential properties had the internet speed we needed before we made a visit.

Thanks for walking acres and acres of land with us and helping us secure a fantastic property we can't wait to call home! We will be recommending Mark to friends and family who will be searching for a new home in the future.”

Toria Warner
Whitewright, Texas

I’ve Got Your Six!

Mark M. Hancock, GRI, MRP, AHWD
REALTOR, New Build certified
214-862-7212
DFWmark.com

#DFWmark #REALTOR #GoogleReview #review #testimonial #land #Whitewright #FanninCounty #AgExempt #DreamHome

Whitewright Welcome Home!

Cleared to Close!

Congratulations to my amazing land buyer clients! They are cleared to close on this spectacular 10-acre, agriculture-exempt property with no restrictions in Whitewright.

I've Got Your Six!

Mark M. Hancock, GRI, MRP, AHWD
REALTOR, New Build certified
214-862-7212
DFWmark.com

#DFWmark #REALTOR #land #video #drone #Whitewright #GraysonCounty #AgExempt #NoDeedRestriction #country

Under Contract in Whitewright!

Congratulations to my amazing land buyer clients! They are under contract for this spectacular 10-acre property with no restrictions in Whitewright.

I've Got Your Six!

Mark M. Hancock, GRI, MRP, AHWD
REALTOR, New Build certified
214-862-7212
DFWmark.com

#DFWmark #REALTOR #land #Whitewright #GraysonCounty #NoDeedRestriction #country #forest #DreamBig

Scouting Land in Terrell

My clients were interested in one of these two 10-acre lots in Terrell. It’s great land, but they decided to keep looking for something else. Call, text or email if you want land too.

I’ve Got Your Six!

Mark M. Hancock, GRI, MRP, AHWD
REALTOR, New Build certified
214-862-7212
DFWmark.com

#DFWmark #REALTOR #land #RealEstate #drone #aerial #agriculture #CountryLife #Terrell #KaufmanCounty