Texas/Austin FSBO Restrictions?

Question

We have an FSBO opportunity and have met with the homeowner. He wants to sell to someone who'll live in the neighborhood (which we will), so it's a great opportunity for our family. However, the homeowner is under the impression that there are restrictions in Texas that limit individuals selling privately... He says "they eliminated the owner finance recently unless you have a license".

Is this true? We'll be working with a mortgage broker, but I was under the impression that we could work directly with a homeowner + mortgage broker + title company w/o having to engage agents.

Aaron Hanson · Answer

Thank you both @Jerel Ehlert and @Andrew Postell!

Jerel Ehlert · Answer

Link to SB43: https://legiscan.com/TX/text/S...

Restrictions start if the seller does 3 in 12-month period. Until January 2022, seller can do up to 5 in 12 months.

But, yes, lots of difference between selling by owner and owner financing.

Andrew Postell · Answer

@Aaron Hanson just selling a property FSBO is not illegal.  There was some language that goes into effect in 2022 that affects OWNER FINANCING (It's SB43 if you are into looking up laws/bills).  But just selling a property is your RIGHT as a homeowner.  You are not required to go through a listing agent nor do you have to become a licensed real estate agent to sell your own property.  Owner financing not equal to FSBO.  Hope that makes sense.