"We want to lease the home on a "lease-purchase". How many times have you heard this lately?
Today's market has changed drastically and there are many more lease transactions than in years past. Many of the people wanting to lease homes have some sort of credit issue or financial reason they can not purchase. Almost weekly I hear of someone wanting to "Lease-Purchase" a property. This sounds attractive to both the would be buyers and the seller, but don't try this, fellow agents, without legal assistance. This is when you call in the big gun, the attorney! We wear a lot of hats, but we are not allowed to practice law.
Here's the real deal! At least this is true in my great home state of Texas!
- Don't try to handle this by using separate lease and purchase contracts.
- There is not a TREC or Texas Association of Realtors forms for this. DUH! Don't you think it is a clue when there is not a form to cover a transaction type?
- The ONLY way you should attempt to go forward with a lease-purchase transaction is to get an attorney involved.
Don't practice law if you are not an attorney! Don't be tempted! This issue keeps coming up and there are agents who will argue the point and insist that it is legal, but guys. at least in Texas, it is not legal.
Agents, represent your clients well and explain that they must swing for the attorney fee, a bargain when you consider the risks involved in not doing it legally!
At least this is the way it is in Texas!
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