Selling: Rent to Own vs Owner Finance in Texas
Hi all, hope all is well.
1- I've heard that Lease with Option to Purchase is not legal or no supported in Texas. Any resources?
2- If I owner fiance a property are there any RMLO's you recommend and why?
Thanks!
That old wive's tale of lease options being illegal in Texas still persists, I see.
Fact check: lease options are, in fact, legal in the great state of Texas,
Quote from @Michael Carbonare:Says the Pizza man from Florida! Lol, thanks for the reply.
That old wive's tale of lease options being illegal in Texas still persists, I see.
Fact check: lease options are, in fact, legal in the great state of Texas,
Quote from @Luke H.:
Quote from @Michael Carbonare:Says the Pizza man from Florida! Lol, thanks for the reply.
That old wive's tale of lease options being illegal in Texas still persists, I see.
Fact check: lease options are, in fact, legal in the great state of Texas,
Rent to own is legal in Texas. However the requirements of the seller/owner are onerous and the penalties for non compliance can be severe. Additionally, if the buyer fails to pay, the seller's remedy for non payment can be having to foreclose or a timeline equal to foreclosure so there is really no benefit. Here are some of the guidelines
https://texaslawhelp.org/article/executory-contracts-and-lea...
Quote from @Michael Carbonare:
Quote from @Luke H.:
Quote from @Michael Carbonare:Says the Pizza man from Florida! Lol, thanks for the reply.
That old wive's tale of lease options being illegal in Texas still persists, I see.
Fact check: lease options are, in fact, legal in the great state of Texas,
thanks for the invite, I'm planning a trip to Flordia soon!
Quote from @Greg H.:
Rent to own is legal in Texas. However the requirements of the seller/owner are onerous and the penalties for non compliance can be severe. Additionally, if the buyer fails to pay, the seller's remedy for non payment can be having to foreclose or a timeline equal to foreclosure so there is really no benefit. Here are some of the guidelines
https://texaslawhelp.org/article/executory-contracts-and-lea...
Excellent response, this is what I was looking for!
Moving forward with Owner Finance
$90K price
10% down
9.9 interest
15,20 yr options.
1 contract pending signature. Less than 7 days.
Putting out more marketing signs today!
Thank you
Quote from @Luke H.:
Update for the people watching:
Moving forward with Owner Finance
$90K price
10% down
9.9 interest
15,20 yr options.
1 contract pending signature. Less than 7 days.
Putting out more marketing signs today!
Thank you
LO's are legal in TX but over 6 months you have to disclose mortgage information and the buyer has to be able to know when the payments are being made. In your case, this isn't a good LO anyway as the price is too low for an effective LO if you're looking for a buyer to get financed TBH. Good job on the seller finance! If you own this house and are doing more than 3 in a year get an RMLO.
Quote from @Luke H.:
Quote from @Michael Carbonare:
Quote from @Luke H.:
Quote from @Michael Carbonare:Says the Pizza man from Florida! Lol, thanks for the reply.
That old wive's tale of lease options being illegal in Texas still persists, I see.
Fact check: lease options are, in fact, legal in the great state of Texas,
thanks for the invite, I'm planning a trip to Flordia soon!
Michael....didn't know you were still alive. Disregard the flowers I sent.
Quote from @Greg H.:
Rent to own is legal in Texas. However the requirements of the seller/owner are onerous and the penalties for non compliance can be severe. Additionally, if the buyer fails to pay, the seller's remedy for non payment can be having to foreclose or a timeline equal to foreclosure so there is really no benefit. Here are some of the guidelines
https://texaslawhelp.org/article/executory-contracts-and-lea...
That site, after taking a look, has items required for a C4D that are not actually required for a LO.