Legal Question in Real Estate Law in Texas

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.