First time on forum,want to get in lease option game but i live in texas were i have read that it is now illegal to do can anyone refer me to website etc so i can get info to find out if there is a legal way to do lease option in texas.
Thanks in advance
I split this off the topic you had posted it in as it would do best on its own.
There is a push to readjust the lease option law in texas. I do not have the bill number at this moment, but they will make it more feasible.
Meanwhile, there are options or some people making recommendations on how to do it, but do you want to test the law?
I’ve even heard of people just doing L/O’s - period. Either they haven’t a clue about the law or are just ignoring it with the hope they don’t get caught. I’ve even seen bandit signs that specifically say Lease/Option (or Lease/Purchase). Heck, even an agent I talked to late last year said I could sell my houses with a L/P. Huh?!?!
Here is something I would think would be a major concern.
You put a T/B in the property for x amount of dollars and they pay for so many months. Then they have some kind of problem and cannot make the monthly payments or finance when they are suppose to.
"Mr. Attorney General, I was sold a property where the professional investor sold it to me on a Lease Option, which I was just made aware of is illegal in the State of Texas.
Would you please assist me in the return of all my money, here are all the facts."
You can see where this is going and where it will go, now figure out if it is worth violating the law and what can happen in a heart beat.
Here is an example of a few Foreclosure investors in Washington who were turned into the AG’s office by property owners and the AG filed a complaint in the courts.
“10.5 That pursuant to RCW 19.86.140 the court assess a civil penalty of two thousand dollars ($2,000) per violation against each defendant for each violation of RCW 19.86.020 caused by the conduct outlined in this complain and that the court assess a civil penalty of one hundred thousand dollars ($100,000) per violation against each individual defendant or five hundred thousand dollars ($500,000) per violation against each corporate defendant for each violation of RCW RCW 19.86.030 caused by the conduct outlined in this complaint.”
John $Cash$ Locke
if not mistaken, it is triple damage too. Lease Options are not illegal in Texas, but they are executary contracts now and require full written disclosure of the lien holders.
Like the guys said, many people are doing it, and many think they have creative ways around it but in the end, it is up to the judge to decide and until there is case law in place it is very risky business.
Why not buy and sell on wrap ?
Im very new to this business,very little money right know that’s why i looked at L/O. Can you explain the buy and sell wrap in more detail.
Lease options are illegal in Tx?
I’m in Tx and that’s what I’m trying to look for right now sinse I have very little money and credit to get a loan right now. If you find out any more info about this or something else that can be done please let me know so I can quit wasting my time looking for L/O. Thanks
I have read some stuff on this site that pilot76180 has put out and i thought he said there was an addendum to the sb 629 that states you can do L/o as long as option period is under three years. Im trying to verify that if you know how to contact pilot76180 direct he may be able to verify. Im new so i do not know how to contact him throught this forum. let me know what you find out.