Updated over 5 years ago on . Most recent reply
When to use land contract vs subject to
can anyone tell me why I would use a land contract for houses I will wholesale/flip to someone else, versus using subject to for houses I will hold myself? is it because it is more enticing to the seller for land contract but if i buy it for myself i would want it subject to have more control? so confusing! Thanks!
Most Popular Reply
In Texas, it is highly advised to NEVER use "land contract" (aka, contract for deed) or lease/option. These are executory contracts and highly regulated under Chapter 5 of the Texas Property Code. If there is a consumer on the receiving end, the consensus against using executory contracts goes double.
Use a lawyer familiar to draft sub-2 papers and title company that knows the difference.
Use a lawyer familiar to draft sub-2 papers and title company that knows the difference.