The buyer has the right to convert a performance contract into ”registered legal titles” in accordance with point 5.081, ”at any time and without paying any penalties or fees of any kind”. This means an act, probably a general warranty deed, but nothing less than a certificate without warranties. The seller has no choice on the merits as long as the buyer processes the balance due after the contract. This applies regardless of whether or not the contract of execution is registered. Section 5.062. APPLICABILITY. a) . For the purposes of this sub-chapter and only for the purposes of this sub-chapter. An option to purchase immovable property comprising a residential rental agreement at the same time as the rental agreement, combined or executed at the same time as the latter, is considered to be an enforceable contract for the transfer of immovable property. When we talk about rental options in this article, we are referring to a rental agreement that contains an option to purchase the property. however, does not provide for any payment for the purchase to be made during the rental period.
What will happen if the above conditions are not met? First, the omission of section 5.069(d)(1) is defined as a ”false, misleading or deceptive act or practice” in accordance with section 17.46 of the DTPA; Second, pursuant to section 5.069(d)(2) of the Property Act, the buyer has the right to ”terminate and cancel the application contract and obtain a full refund of all payments made to the seller.” These include the down payment and money that the buyer spends on sustainable improvements to the property. What about monthly payments? Not included. ”While the buyer is entitled to a `full refund of all payments made to the seller`, the termination and termination of a contract also requires the buyer to return to the seller the value of the buyer`s use of the property.” Morton v. Nguyen, 412 S.W.3d 506 (Tex. 2013). Executory contracts, including leasing purchases, are a form of owner financing and, therefore, the Federal Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) and the Texas version (”T-SAFE”) apply. However, the seller should only be allowed if the property is not the seller`s farm and/or if the sale is not made to a family member. The Commissioner of the Texas Department of Savings and Mortgage Lending (”TDSML”) has ruled that T-SAFE will not apply to individuals who grant five or fewer bearer loans in one year.
Note that the T-SAFE licensing rule only applies to owner financing. Rental options, as well as leasing and leasing contracts, have long been part of the traditional instruments of Texas residential investors….