Home Buying in 75134>Question Details

Mrs.sylvia R…, Other/Just Looking in Lancaster, TX

is there really a rent to own program in Texas?

Asked by Mrs.sylvia Ronertson, Lancaster, TX Mon Apr 18, 2011

For a family with 4 little girls

Help the community by answering this question:


There are no contracts put out by the Texas Real Estate Commission for realtors to use so we generally don't do them. Most rent to owns are done by owners selling their ownproperty. I would search for sale buy owner listings. Just fyi, these are genrally not the best deal. I would look at downpayment assitance programs in your area. There are programs that will give youo a grants you don;t have to pay back. Example: http://www.tdhca.state.tx.us/homeownership/fthb/down-payment…
Contact a local lender or realtor they can help you.
Web Reference: http://www.DaveRealty.com
1 vote Thank Flag Link Tue Apr 19, 2011
We can help you locate a property that might fill your needs, but the state law is pretty clear on this:
Realtors cannot write a contract that is executory for more than 180 days - only an attorney can. So, we can find the property, negotiate the deal, but it requires an attorney to draft the contract.
Secondly, owners selling on such contracts are under such an onerous burden of reporting that many of them simply don't want to sell that way.

I actually receive lists of owners offering such deals, but the terms are not pretty either. Typically, they're looking for 8-10% down payment in cash, plus other terms that often scare off potential buyers.

Executory means that the right to purchase extends from the time of execution until closing over 6 months into the future.

There are other possible solutions, but rent-to-own is much more difficult to do in Texas than in past years and other places.
Web Reference: http://www.SumnerRealty.com
0 votes Thank Flag Link Wed Apr 20, 2011
I invest in DFW (and in other markets), and TX is very lease-option (aka rent-to-own) unfriendly. Technically, a landlord/seller can only structure such a deal with an option period of up to 6 months, and many experienced real-estate attorneys strongly would prefer to steer their clients to use an installment contract instead.
0 votes Thank Flag Link Tue Apr 19, 2011
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