Legal Question in Real Estate Law in Texas

Owner Financing

Hello all:

We are trying to sell a house, but the buyers can't go through a bank, so we suggested a rent to own deal with them. What type of contract will we need inorder for us to obide by the property codes of Texas. I started drafting one, but I want to make sure all the codes are included.

We have looked at different contracts, but we aren't sure which one is legal for El Paso County.

Please advise.

Thanks,


Asked on 7/25/07, 11:45 am

1 Answer from Attorneys
Ryan Bormaster D. Miller & Associates, P.L.L.C.

Re: Owner Financing

You are talking about what is known at law as an "Executory Contract" or "Contract for Deed". You need to be aware that in Texas, once a specific portion of the payments are made, the Contract converts into a Deed of Trust and beneficial title automatically passes into the buyer's name. There are also specific provisions that need to be included, and specific obligations on the part of the seller, such as providing an amortization schedule on a regular basis. I am happy to discuss this with you further. If you would like a complimentary telephone consultation, email my paralegal, Carrie Smith at "[email protected]" and include your contact information so she can get in touch with you to make arrangements.

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Answered on 7/25/07, 1:08 pm


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