Question on Lease to Own in Texas

**Courtney81** · 08-03-2010, 07:35 PM

Hello everyone,

This is my first time here and I am trying to find answers and seem to get the run around. My boyfriend and I have just entered into a (right now it is just a verbal agreement) to lease to own a home from a single mother who can't take care of the home any longer and doesn't want it. She has health issues and is a family friend of my boyfriend's so I feel ok about it but want to protect ourselves at all cost. The "owner" has stated that she wants nothing to do with the home anymore but didn't want to go through the hassle of trying to sell it due to her health condition and having several surgeries. She has advised that she is giving us the home, we just take over the payments etc and can make any changes to the home we want. I am unable to attempt to buy the home or take over the loan with the bank due to my very bad credit from being laid off a year ago and still trying to clean that up. I have a steady amazing job now, but the damage was done to my credit.

My question is: in Texas what is the best way to protect myself with a "Lease to Own" contract with her? I don't feel she will turn on us, but I just don't want to do all the updates and work on the home then she decide she wants it back and I am stuck and out on my behind. I did speak with a real estate attorney who stated he would have to actually write a lease to own contract which would cost over $3000, this is not an option for me at the time due to finances but I need something soon just to ease my mind. If I draw up my own "contract" stating that I enter into a contract with her for a lease to own etc and I can make changes blah blah blah, have her sign and it notarized....how will that hold in a court if she decides she wants it back?

Sorry for the long post, just need some guidance.

Thank you so much,
Courtney

email: texasbeauty81@yahoo.com

**Greg** · 08-10-2010, 07:33 AM

From what I gather in your writing you will be paying this lady the mortgage payment, taxes and insurance and then she will pay her lender, insurance agent and tax collector. At some point in the future you will get a loan and take over the payments directly.

What happens if she stops making those payments? Your lease won't mean a thing when the foreclosure proceedings start.

**agentsranking** · 09-22-2010, 09:11 AM

You'll find tons of lease to own contracts on line that you can use for free. Don't even think about paying $3000 for such a contract. It would be advisable though since you are new to this that after your original draft of the real estate contract, spend a few hundred dollars and have a real estate attorney review it. It's been my experience that a lease to own contract will hold up in court. Since you have bad credit I would suggest drawing up a lease contract that gives you 10 years. This will allow you time to be sure you improve your credit. Also, be sure that you pay the mortage, taxes, insurance, etc, directly, (on the homeowners behalf). Don't pay the current owner because she could quit making the mortgage payment without you knowing and the house could end up in foreclosure.