No Good Deed Goes Unpunished: Selling a Home with a Rent-to-Own Contract
Do you have a tenant that would like to purchase the home they are renting? Do you have a property you want to sell to someone who may not qualify for conventional financing?
Selling a home on a rent-to-own basis may seem like a great idea, but the procedural pitfalls of that type of transaction may outweigh the risk. The Texas Legislature has gone to great lengths to protect purchasers in these types of executory contracts. There are a whole host of disclosure requirements, restrictions on contract terms and annual accounting requirements that, if not followed to the letter, can result in the buyer’s right to cancel the contract and receive a full refund of all payments made to the seller. If this occurs several years into one of these contracts, the seller could be forced to refund tens of thousands of dollars.
If you are thinking about one of these executory contracts, or have already sold a house on a rent-to-own basis, let one of the attorneys at the McCleskey law firm help you take the right steps to be in compliance with Texas law and know that you are protected from liability.