Posted by William Bronchick on December 07, 2007 at 08:28:58:
Yes, a six month lease/option would be exluded, which makes it impractical. Trying to renew it ipso facto would be too obvious. The best owner financing tool for TX would be a wraparound AITD.
TX Lease Option Info - Books, Courses or other - Posted by Mark Shehan
Posted by Mark Shehan on December 06, 2007 at 15:55:12:
Hi
I have tried a search but nothing is coming up on Lease Options for TX since the law has changed in Mid 2005.
I am a newbie and trying to find some creative alternatives to the law. I am waiting on a Real Estate Attorney to meet with me so I can ask him some questions but I would like to know my options (no pun intended) before I meet with him.
Can someone point me to some helpful books etc. Or provide some answers on here?
Thanks in advance
Re: TX Lease Option Info - Books, Courses or other - Posted by Lee
Posted by Lee on December 24, 2007 at 21:15:30:
You can find the Enrolled version of HB 1823 here. This is the law that changed everything regarding Lease Options in Texas.
(Just in case you want to read it for yourself.)
http://www.legis.state.tx.us/tlodocs/79R/billtext/html/HB01823F.htm
Re: TX Lease Option Info - Books, Courses or other - Posted by Lee
Posted by Lee on December 24, 2007 at 21:14:05:
You can find the Enrolled version of HB 1823 here. This is the law that changed everything regarding Lease Options in Texas. (Just in case you want to read it for yourself.)
http://www.legis.state.tx.us/tlodocs/79R/billtext/html/HB01823F.htm
Doesn’t work in TX for now - Posted by William Bronchick
Posted by William Bronchick on December 06, 2007 at 17:59:01:
In 2005, TX passed a law that basically makes selling on a lease/option near impossible. So, that’s why nobody talks about it in TX. There’s some legislation that’s trying to move through the process to modify this rule somewhat, but so far no real progress.
Oops. Duplicate Post. Please Delete - Posted by Lee
Posted by Lee on December 24, 2007 at 21:18:11:
Fat Finger. My bad.
Hold on a Second - Posted by Jimmy
Posted by Jimmy on December 09, 2007 at 05:32:26:
L/O’s are not my biz, but my understanding of the 2005 law change did not kill TX L/'s. Rather, it made it harder to evict a defaulting L/O tenant. It puts certain L/O tenants on the same footing as a buyer in a seller-financed deal. there are demand for payment requirements, notice requirements, and the L/O tenant may be entitled to get some money back. [I should note that TX foreclosures are pretty easy. not as easy as an eviction, but easy nonetheless.]
this was a legislative over-reaction to a small number of abusive, predatory L/O hucksters.
William - a renew option after 180days? - Posted by Mark Shehan
Posted by Mark Shehan on December 07, 2007 at 08:27:35:
I appreciate I need to speak to a TX Attorney and have a meeting set up next week, but hopefully you can clarify something for me.
The current law says 180day lease options are excluded from this. I would be able to do a lease agreement and option for the 180days but I would like to be able to give the RTO tennant some peace of mind that they will be able to renew based on all things going to plan. Would a letter of intent or option to renew or even a 2nd option ready to go in escrow contravene the 180 rule?
No-one come up with a creative way??? - Posted by Mark Shehan
Posted by Mark Shehan on December 07, 2007 at 05:20:54:
Thanks for the reply. I know about the new amendments but as you say they seem to have stalled.
I would have thought that in 2 yrs someone would have found a creative way to meet everyones needs.
Re: Hold on a Second - Posted by Mark Shehan
Posted by Mark Shehan on December 10, 2007 at 05:30:03:
That is true. Except that you have to also give them the name, address, account number etc. of the Owner (which may or may not be you depending on how you did the deal) get the lienholders permission to let the new RTO tennant have access to the lien account whenever they want, plus a few other things that could potentially trigger the lienholder to call in the loan.
Given the fact that you have to foreclose (albeit in Texas that is a lot easier than other states) then you may as well just go for an owner financing as you have to give them less information by law and so less chance of triggering things like due on sale clauses.
I am trying to find a way where for some RTOs that I give 180days to (and then owner financing) that if there is a change in circumstances (but they have been fine so far with payments) that if we renewed instead of giving them owner financing this law would not kick in.