Lease Options in Texas

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  • How can you perform a lease option in Texas.

    Check out this link on the subject:

    That guy also publishes a book where you can read a bit more.

    Here’s a quote from the last paragraph of his article:

    Lease-options are now a risky business in Texas. The legislature clearly intended to discourage their use in residential transactions and deliberately imposed significant liability on landlord/sellers for doing them improperly. The net effect of the burdensome requirements and stiff penalties applicable to executory contracts has been to greatly inhibit their use. Sensible investors avoid them. Most real estate lawyers will not do them at all, since failure to comply with even the smallest requirement may trigger significant liability for the attorney preparing and filing the various disclosures and documents.

    Hope that helps.

    You can buy with a lease option all day long in Texas. But why would you want to do that?

    You should not ever sell with a lease option in Texas because a lease option was reclassified as an executory contract about 17years ago. This information applies to selling with a contract for deed too. The some of the rules are that you have to give the tenant/buyer the deed within 6 months, if they change their mind you have to give all their deposit back, if you fail to supply annual accounting there is a $250 a DAY fine, the list goes on and on and on of RIDICULOUS rules which should be enough to convince you that you should never, ever do a lease option or a contract for deed in Texas.

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