Let me modify this:
If I sign a contract before Jan. 1st, 2006 can I still do a sandwich L/O in Texas using the same laws, contracts and forms as before?
The reason for this post is for someone to explain in plain English what you can or cannot do under the new law (HB1823). I can read the law itself but I am sure I will get lost in the legalese.
I read Steve Tiemann’s post on AIREO.com about the subject but need more specific information.
Any and all help appreciated.
Thanks,
B.
Before thinking about an exit strategy, I would definately check out the comps first. to see if the buy side works If the appraised value is close to what it’s FMV is you’re already upside-down on this property by $10k. There are much better deals out there.
Howdy SRB:
Ditto
B,
There is a lot to the new lease option legislation. Far too much to explain in a post on a bulletin board unfortunatley.
To answer your specific question about a sandwich lease option before January 1st…
Everything that I have read indicates that you can do this as long as you find your tenant/buyer before January 1st.
The problem is that if you have to replace that tenant/buyer after that date, then you would have a big problem because you do not hold “fee simple tilte” to the property which is one of the requirements of the new legislation.
Hope that helps,
Marcus Curry
Howdy MarcusC:
From all that I have read it is Sept 1 when the new law kicks in.
Yes that is mostly correct.
The first phase of the legislation kicks in September 1st, but the most damaging part of the legislation kicks in January 1, 2005.