He went on to tell me about a friend of his who bought a house in Buffalo for $1 through the "Buffalo Homestead Program"  with the following terms: the property had to be your primary residence for 3 years and all code violations had to be resolved in 18 months.

The unscrupulous investor will:Have the homeowner sign a Quit Claim Deed in which the homeowner signs over their ownership in the property.Fail to explain to the homeowner that they, the homeowner, are still responsible for the mortgage.Fail to warn the homeowner that they could be violating their “due on sale clause” with their lender.The homeowner is usually elderly or part of an at-risk population (English isn’t their first language, disability of some kind, etc.).The Division advises the following when it comes to these types of rescue transactions:Don’t sign any documents or a deed to anyone until you have had a chance to talk with your lender and an attorney about your mortgage obligations and your legal rights.Colorado has a Foreclosure Protection Act that affords you certain rights when you are financially distressed.It’s best to take proactive steps when you first start having financial problems, and here are some resources that you can contact:Colorado Housing Connects – Colorado Foreclosure Hotline – Colorado Bar Association “Find-a-Lawyer” – Colorado Legal Services – Disability Law Colorado (Formerly The Legal Center for People with Disabilities and Older People) – 

@Neil Greene the seller is in violation of The lead paint law.  

I need to visit the city to inform them I have purchase the house and they will reset all of the violations dates.

*Again, I’m a newbie, so please forgive me if I’ve violated any terms or unwritten rules for the BP forums with this post! 

@Daniel EvenchenWhat you propose would violate the IRS rules.

I know this is an older thread, but since it’s been revitalized....I will expand on what @Ned Carey states above.Texas was the first state to place ominous restrictions on land contracts, and servere penalties for violations.  

A transfer to a trust is exempt from due on sale violations since banks will view transfers to a trust as an estate planning tool.

@Justin WallmanAs long as the lease isn't in violation of local/state/federal law you have to adhere to it.

You can not rely on your lease languageas it may be in violation of state regulations.