Posted by John Merchant on December 28, 2009 at 11:25:02:
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Texas Subject To - Posted by genny - Texas
Posted by genny - Texas on December 18, 2009 at 13:06:53:
Are Subject to contracts legal in Texas?
Re: Texas Subject To - Posted by Tom Henderson
Posted by Tom Henderson on December 19, 2009 at 10:09:13:
Yes, “subject to’s” are legal in Texas, but there are several land mines and time bombs to wary of. It goes without saying that when buying or selling on a subject to contract, you want to disclose, disclose, disclose to all parties of the legal hazards, such as due on sale.
In my opinion, when purchasing on a due on sale, you leave yourself open to legal action if you fail to make the payments. For example, you sell me your property on a subject to contract. I do not make the payments to the bank, and the bank starts foreclosure. You have no legal remedy except to sue me, since you do not own the property.
I believe wraps are a much better way of purchasing property than subject to contracts. In the same example, if I do not make payments to you, you have the remedy of foreclosure.
I strongly suggest you get the advice of a competent legal attorney before engaging in subject to contracts.
Hope this helps.
Tom Henderson
Dallas, Tx
TX law restricts REC - Posted by John Merchant
Posted by John Merchant on December 27, 2009 at 15:08:55:
TX has severely limited the REC so now no residential REC can run for more than 6 months w/o its being subject to challenge and legal avoidance…i.e. will be held to be “NG” if challenged in court.
The REC and L/O both were tools of crooks for too long in TX and misuse of both finally brought about their statutory curtailing and revision a few years back.
Need a definition here - Posted by Chi Ming
Posted by Chi Ming on December 27, 2009 at 22:21:59:
I have not run into the term REC, can you tell me what it stands for?