Owner Financing
Are owner financing transactions legal in Texas? The short answer is YES. Owner financing can be a very useful tool for both buyer and sellers in any real estate transaction. However, both buyers and sellers should be cautious because such transactions need to be executed appropriately. Hiring a competent attorney who understands every detail of an owner financing transaction is very important. For sellers, you must be careful when conducting an owner financing because if done incorrectly, it could jeopardize your entire transaction and subsequently, your entire investment in the property. In Texas, there is a very good reason why sellers must be careful. Over the last 20 years, laws written to protect buyers from unscrupulous lending. In other words, if you are a seller, you will be held to same standards as that of a bank. It becomes your responsibility and duty to practice due diligence in your methods. If, however, you do not follow the guidelines required, you may find your...