Is Rent-to-Own Legal in Pearland (Houston) or Texas in General?

Is Rent-to-Own Legal in Pearland (Houston) or  Texas in General?

Short Answer:Generally they are very complicated if not illegal in Texas

Long Answer:  provided from


Residential lease-purchases for longer than 180 days are no longer a feasible strategy for investors because of the multitude of requirements and the potential liability for doing them improperly. There is really no way to use a stacking technique here, as is at least theoretically possible in the case of lease-options. Add the fact that the Property Code declares open season on the investor/seller whenever a tenant/buyer becomes disgruntled with an executory contract, and there are more reasons to avoid lease-purchases than there are to do them—especially since loss of an executory contract lawsuit could present an extinction event for a small investor. So sensible investors avoid them. Most real estate lawyers will not do lease-purchases at all, since failure to comply with even the smallest requirement may trigger significant liability for the attorney preparing and filing the various disclosures and documents.


Information in this article is proved for general educational purposes only and is not offered as legal advice upon which anyone may rely. The law changes. Legal counsel relating to your individual needs and circumstances is advisable before taking any action that has legal consequences. Consult your tax advisor as well. This firm does not represent you unless and until it is retained and expressly retained in writing to do so.

Copyright © 2016 by David J. Willis. All rights reserved worldwide. David J. Willis is board certified in both residential and commercial real estate law by the Texas Board of Legal Specialization. More information is available at his web site,

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