Jump to content


Photo

New Texas Bill - SB629


  • Please log in to reply
20 replies to this topic

#16 navy_jay

navy_jay

    Newbie

  • Members
  • Pip
  • 1 posts

Posted 02 July 2005 - 01:38 AM

Having just read this forum, I just found out there are some new laws in Texas regarding contracts and option times. Funny, I have two properties there and I am unaware of the changes. Can any one tell me the new restrictions, policies, and guidelines, in English, not lawyer terms? I am currently in the process of doing another deal there and don't want to find out I am screwed when I send the papers to the lawyer for final preparations. Thanks in advance.

I am in stress mode here.

#17 MichaelC

MichaelC

    Makes a mean Lasagne!

  • Admin
  • PipPipPipPipPip
  • 11,217 posts

Posted 02 July 2005 - 07:12 AM

Hello Navy_Jay, and welcome to The Naked Investor. Good to see another Texan join us.
I'm not personally aware of the final results of this legislation. I would think that the info you seek would be readily available locally. Say an REIC, or a local real estate attorney. We have a number of Texas based members here, why not contact one or two? In fact, there are two in this thread who can probably assist you: bartendjoe, and pilot76180.
Now that you mention it, many of us on this board would also be interested to hear how this turned out, and what it all means. Keep us posted, and good luck.

#18 pilot76180

pilot76180

    Flying High. . .

  • Members
  • PipPipPipPipPip
  • 902 posts
  • Gender:Male
  • Location:Ft. Worth, TX

Posted 12 July 2005 - 09:25 PM

Hello one and all! Well, the bill had some amendments made to it, and was passed and signed into law. The final version is here:

http://www.savetexas...rg/thebill.html

If that doesn't link it, just cut and paste it.
It is interesting how you can ask 10 investors or 10 lawyers what this means, you 'll get 10 answers. Thre are people screaming the sky is falling, but as for ma and our attorney, we'll make changes to our documents, add some disclosure, and keep on going! There is a valid reason to have changes to the laws for protection, but this bill actually hurts those it was meant to help. Fortunately for me anyway, we have always had far more disclosure in our docs protecting the buyer. We still go beyond what the new legislation requires. In a nutshell though, here is what it says:
We can no longer withhold rent credit for a late payment.
The late payment can not exceed 8% of the monthly rent.
The seller must be able to provide proof of mortgage payments to the buyer.
Since we have only done one or two sublets, I'm not sure how the "fee simple title" will affect sublets, but I'll look into it.
Again, some people will say L/O's are now outlawed, I saw, there are just some new rules to play by, and the big boy on the block is going to play by the rules, and this may even rid us of some competetion. Nothing against competetion, but if you were only doing a few a year anyway, you propbably won't bother to make the necessary changes to keep messing with it.
www.Leasingtobuy.com
www.Texasleaseoptions.com
Tequila connoisseur

#19 MichaelC

MichaelC

    Makes a mean Lasagne!

  • Admin
  • PipPipPipPipPip
  • 11,217 posts

Posted 13 July 2005 - 08:41 AM

It is interesting how you can ask 10 investors or 10 lawyers what this means, you 'll get 10 answers.

Ain't that the truth! Glad you popped in again, Pilot. I was planning on giving you a shout, because I wanted to get to the bottom of this new legislation. I've been hearing all sorts of wild and varied interpretations to this new law, some going as far as "all unconventional real estate transactions in TX are now illegal". :ninja:
From my understanding of what you wrote,

We can no longer withhold rent credit for a late payment.
The late payment can not exceed 8% of the monthly rent.
The seller must be able to provide proof of mortgage payments to the buyer.

I see this as much ado about nothing. Seems to me if you run your business on the up and up, this really has no practical effect on what we do. And if we're doing CA's in TX, even less so.
May everyone have a cold Lone Star and relax... B)
Thank you for the update, John.

#20 jtlab

jtlab

    Making Offers

  • Members
  • PipPipPipPip
  • 144 posts

Posted 06 August 2005 - 08:53 PM

If anyone knows what is going on w/ north carolina as far as l/o let me or us know. THX!
"You do not have to get it right, you just have to get it going." -- Mike Litman

#21 JCProperties

JCProperties

    Newbie

  • Members
  • Pip
  • 5 posts

Posted 13 August 2005 - 12:55 PM

In regards to the new Texas Bill.

The verbage states: "if a residential lease of real property includes an option to purchase the property...."

What if it does not include an option?

What if the two are exercised as two completely distinct and seperate contracts?...The purchase contract could be set up for closing after the lease expiration date...subject to 3rd party financing.

What about a"temporary buyers lease" while under contract? Which brings me to another question.

Most temporary buyers leases are only for 90 days. Is there a reason for that?Can they be extended, and for how long? Could they be extended for example 180 days...or more...?

JC




0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users