That pretty much the best advice I can give you as a BROKER, and not an Attorney. There are a lot of other options available to you to sell property, but if you decide to sell your property with a lease option and have a disagreement with the tenant you will likely lose the home and maybe more. If you lease-option the house with any financing tied to it you are breaking the law.
Two laws have been passed in recent years which, together, have dealt a deadly blow and made it unlawful to use the popular lease-options as we commonly know. SB 1823, and SB 629. For more info also read Texas Foreclosure Law.
In a nut-shell remember if you have a lien (mortgage) on the property there is a due-on-sale clause. A lease option contract is considered an executory contract in Texas meaning the buyer has all the rights to the home as any other home owner including Homestead, therefore Texas Foreclosure Law comes into effect as well.
One solution is to sell doing owner financing and wrap the mortgage.
If you are a buyer or seller in the DallasFort Worth Texas Metroplex and think a lease option is the only option for you consult with one of our REALTORs - we will be happy to assist you in anyway possible and find alternative solutions to your real estate needs.
JP Piccinini is the BROKER/OWNER of JP and Associates REALTORs - a real estate company based in Frisco Texas where its REALTORS always strive to Exceed Expectations. He specializes in residential real estate sales in Frisco, Prosper, Plano, Allen and McKinney.
Author:JP Piccinini Phone: 800-683-5651 Dated: April 24th 2012 Views: 3,214 About JP: JP Piccinini is an entrepreneur, philanthropist, proud dad and the Founder, Broker and Owner of JP a...
JP And Associates REALTORS (JPAR) is one of the top 100 independently owned brokerages in the US. A full service real estate brokerage firm specializing in real estate sales and marketing services with multiple offices across the US and expanding quickly. JPAR is also one of Real Trends top 500 Brokerages in the US for volume and sales and in the top 1% in the US for sales.
Our mission is to provide extraordinary services and exceed our clients’ expectations by always committing to the highest levels of professionalism, ethics and standards in the real estate industry.
JP and Associates REALTORS is a real estate company with a solid structure and foundation built around service and productivity. We believe in providing a fun and rewarding environment for all our REALTORS® and therefore always ready to support our REALTORs® Associates in any market and in any condition. All our REALTORs® will always strive to close more transactions in a given year than the average REALTOR®. Our goal is to recruit and retain the most professional, better trained REALTORs Associates in the local market.
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"John is absolutely awesome to work with. He knows the market very well. He is very professional. He was available and appreciated his advice while searching for my home. I will definitely use him and recommend him when looking for a property."