Lease options % the SAFEact

[David Lunsford]

Since lease options are executory contracts in Texas will lease options fall under the new SAFE act rules?

[Randy Sires]

I am new to investing but here is how it was explained to me.

You are are okay giving a Seller an Option and Lease together, since you are not the one that will be living in the property, so the law won't apply, but you should NEVER give your Tenant/Buyer anything resembling an Option with a Lease, not even if for only 180 days. So, we give the Tenant/Buyer a traditional Lease and a Real Estate Purchase And Sale Agreement. The Purchase And Sale has no contingencies, so it cannot be construed to be a unilateral agreement (Option). It is a bilateral agreement and expires in 180 days, and if the Buyer needs more time to close (for example, more time to obtain financing) the closing date can be extended ONCE only for another 180 days if requested in writing. Since it calls for a closing under 180 days, it is not subject to the Executory Contract provisions of the Texas legislation.