OfflineThe lease option / lease purchase has been outlawed in Texas as per the Texas Property Code law. It is being reviewed at the federal level as well because of the mortgage mess. I am giving this information out because after working hard for several months and getting everything just right and going out and doing a few deals, I find this out. Thank goodness I was able to go back to the seller's and buyer's and get them to do a straight lease. Since I am a real estate agent, I will still get paid on these leases, but boy was I surprized and let down and after spending so much money and time getting set to have an incredible cash flow business with lease options.
Make sure you get with an attorney and make sure that this is legal in your state because the fines and legal ramifications are just mind boggling. One bad deal and your are toast.
Rick Hagood
Ram Investments
Residential Investments
wefindhomes4u@****
Check the law carefully. I know in NC there are ways around it by limiting the L/O to a certain term, or having the option separate from the lease altogether (Its been a while since I found out this info, so the details are blurry in my mind
). Then, as I understand it, the L/O can be renewed for another term if they want longer to purchase the property. Check out the law thoroughly for loopholes. If you need a lawyer to help find them, utilize a RE lawyer to find a way to do them. 
There are usually legal ways around the L/O laws.
Q. Can we do a Lease Option in the State of Texas?
A. Yes, but with some different twists. A lease with the word “ Option” can’t be used. However, if you use one contract and include the statement that the lessee has the “first right of refusal” to purchase the property, that will fly.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
I'm new to this blog and new to contracts. I have read about lease options being diffcult for Texas, but what do you mean first right of refusal, and what contract do I use first, and where does first right of refusal go in reguards to the contract. Need more info.
Where are you located inTX?
I just attended a four day class in Fort Worth where John Jackson gives an amazing training. He has been doing L/Os in TX for the last eight years and is extremely successful.
When you take his class (which he only offers twice a year) he furnishes you with EVERYTHING you need to start. All your contracts which have all been written with TX attorneys, all the contacts for mortgages, credit repair, his Virtual Asst who can put together your mailing lists, etc. It is literally a "business in a box"!
Check out his site @ www.leaseoptionclasses.com. Tell him I referred you.
Karen
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Dean is correct !
Doing Lease Options,Lease Purchasing in Texas and creative real estate as some Guru's suggest is challenging the authorities and asking for trouble. Thank you Dean for stating the truth. Many of the Guru's teaching courses have no legal background and are just giving bad and potentially costly advice.
Yet there is a legal and reasonable solution that complies with the law; just use Dept Of Real Estate approved or Realtor Sales Agreements and be creative in your escrow instructions.
Thank you Dean.
Claude Diamond J.D.