It is an opportunity to exercise so many techniques and tactics that are constantly evolving in this business. 

All of this could have been avoided with the proper risk mitigation and exit plan.The DOS clause is certainly a real issue, but rarely does it ever come down to the bank actually exercising their DOS legal right.

Hi @Walt Payne There are aspects of 1) the mortgage company2) the IRS3) Dodd Frank```````````````````````````````````````````````````````````````````````````````1) The mortgage co will want market rent  and an exercise price that is pretty close to the appraisal, as the borrower needs to have the property appraise.  

A holder of the certificate who exercises this right shall be entitled to the same interest rate as shown on the previous tax lien certificate.

I would contact an attorney to exercise your rights. 

I do see the value in the exercise. 

If that was in the lease then there would be nothing wrong if they exercised that right.You are also correct that at least around here if they weren't asked to sign a new lease they go month to month and could have just terminated it with 30 days notice for next Oct.  

If not structured very carefully you could end up out of pocket a bunch of cash if the buyer exercises their option.

NOTICE: If Landlord fails to repair a condition that materially affects the physical health or safety of an ordinary tenant as required by this lease or the Property Code, Tenant may be entitled to exercise remedies under §92.056 and §92.0561 of the Property Code.span>If Tenant follows the procedures under those sections, the following remedies may be available to Tenant: (1) terminate the lease and obtain an appropriate refund under §92.056(f); (2) have the condition repaired or remedied according to §92.0561; (3) deduct from the rent the cost of the repair or remedy according to §92.0561; and (4) obtain judicial remedies according to §92.0563.

The Act also prohibits harassment of anyone exercising a fair housing right and retaliation against an individual because s/he has assisted, or participated in any manner, in a fair housing investigation.