Texas Lease to Own Agreement
The Texas Lease to Own Agreement (also called a Contract for Deed”) is a contract used to set binding terms and rules required to be followed by a tenant who plans on purchasing a property at an agreed-upon date and price. It’s preferred by Texas property owners and investors for its likeliness of introducing homebuyers with less than desired credit into the property due to lower downpayment requirements, all the while leaving sellers with the right to evict the tenant(s) for a breach of the contract.
Texas Lease to Own Laws: §§ 5.061 to 5.086 (Note: These statutes only cover residential lease-purchase agreements. Commercial transactions are not included in the statutes listed.)
In Texas, entering into a lease-to-own contract requires the parties to follow the laws to a “T”; this is especially important for the sellers, who can face severe repercussions for drafting and signing an incorrectly created agreement. Because of this, hiring an experienced real estate attorney or licensed realtor is recommended for navigating the legal waters of Texas, which paves the way for the drafting of a contract that sufficiently protects the parties in a fair and diligent manner.
For more information on purchasing a home in Texas, read “Home Buying & Moving” by TexasAttorneyGeneral.gov.