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Updated over 5 years ago on . Most recent reply

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Steven Pearce
  • Austin, TX
2
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7
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When to use land contract vs subject to

Steven Pearce
  • Austin, TX
Posted

can anyone tell me why I would use a land contract for houses I will wholesale/flip to someone else, versus using subject to for houses I will hold myself? is it because it is more enticing to the seller for land contract but if i buy it for myself i would want it subject to have more control? so confusing! Thanks!

Most Popular Reply

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887
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Jerel Ehlert
  • Attorney
  • Austin, TX
758
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887
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Jerel Ehlert
  • Attorney
  • Austin, TX
Replied
In Texas, it is highly advised to NEVER use "land contract" (aka, contract for deed) or lease/option.  These are executory contracts and highly regulated under Chapter 5 of the Texas Property Code.  If there is a consumer on the receiving end, the consensus against using executory contracts goes double.
Use a lawyer familiar to draft sub-2 papers and title company that knows the difference.
  • Jerel Ehlert
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