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Texas Property Code, Chapter 5, Subchapter D, Section 5.061 et seq. – Executory Contract for Conveyance
TEXAS PROPERTY CODECHAPTER 5. CONVEYANCES.
SUBCHAPTER D. EXECUTORY CONTRACT FOR CONVEYANCE
Sec. 5.061. DEFINITION. In this subchapter, “default” means the failure to:
(1) make a timely payment; or
(2) comply with a term of an executory contract.
Added by Acts 1995, 74th Leg., ch. 994, Sec. 2, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 5.065 and amended by Act 2001, 77th Leg., ch. 693, Sec. 1, Sept. 1, 2001.
Sec. 5.062. APPLICABILITY. (a) This subchapter applies only to a transaction involving an executory contract for conveyance of real property used or to be used as the purchaser’s residence or as the residence of a person related to the purchaser within the second degree by consanguinity or affinity, as determined under Chapter 573, Government Code. For purposes of this subchapter, and only for the purposes of this subchapter:
(1) a lot measuring one acre or less is presumed to be residential property; and
(2) an option to purchase real property that includes or is combined or executed concurrently with a residential lease agreement, together with the lease, is considered an executory contract for conveyance of real property.
I am posting this for entertainment and education purposes only.
As rightfully taught by Jack Miller option is a right to buy not an interest in real property.
I am so grateful to all his teachings which I started on March 13th 2020. It was a Friday and Dallas county judge ordered a shelter in place order and I thought of finding all the legends of real estate investing b4 1981 I was born and came across Jack Miller
Texas Property Code, Chapter 5, Subchapter D, Section 5.061 et seq. – Executory Contract for Conveyance
TEXAS PROPERTY CODECHAPTER 5. CONVEYANCES.
SUBCHAPTER D. EXECUTORY CONTRACT FOR CONVEYANCE
Sec. 5.061. DEFINITION. In this subchapter, “default” means the failure to:
(1) make a timely payment; or
(2) comply with a term of an executory contract.
Added by Acts 1995, 74th Leg., ch. 994, Sec. 2, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 5.065 and amended by Act 2001, 77th Leg., ch. 693, Sec. 1, Sept. 1, 2001.
Sec. 5.062. APPLICABILITY. (a) This subchapter applies only to a transaction involving an executory contract for conveyance of real property used or to be used as the purchaser’s residence or as the residence of a person related to the purchaser within the second degree by consanguinity or affinity, as determined under Chapter 573, Government Code. For purposes of this subchapter, and only for the purposes of this subchapter:
(1) a lot measuring one acre or less is presumed to be residential property; and
(2) an option to purchase real property that includes or is combined or executed concurrently with a residential lease agreement, together with the lease, is considered an executory contract for conveyance of real property.
I am grateful to all the teachings of Jack Miller
There is an article by LoneStarLaw.com if you google search “Lease Options in Texas” it states Options are not mentioned in property code.
Regards
AjayNote that an executory contract (in Texas) is when you buy or sell with a Lease Option or a Contract For Deed. That’s why we do not recommend doing lease options or a contract for deed in Texas. The rules are brutal. The penalties for not doing it right are terrible.
You can, however, buy with seller financing which does not fall under the executory contract rules. When you buy with seller financing, even seller financing that wraps an underlying loan, you DO get the Deed to the property. There are more details in the Premium Member Special Report t “Subject To Done Right”
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