I leave in texas and would like to do lease options deals. I heard that bacb in October 2005, the law concerning lease option changed make the strategy less attractive. Any details? the law reference number for me to read would be appreciated. What really changed comparing to other states. Thanks for the input.
There were several threads about this in the past year or so. I’d suggest using the [Search] feature to find them as they were full of good info. Basically, yes, lease options are pretty much illegal in Texas now. There are stipulations in the law making them legal, like having no underlying notes/leins, and there are ways to make L/O’s work still otherwise (e.g., have an option period <180 days), but for the most part the L/O’s we know and love are against the law currently in TX.
Note: I still hear about people who do L/O’s regardless of the law, but they are taking a HUGE risk, IMHO.