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Code Section 5. 061 et seq. applies to "executory agreements" which are transactions that are insufficient or incomplete in some product regard, normally the shipment of a guarantee deed. The primary financing techniques impacted are agreements for deed, lease-options, and lease-purchases. The Residential or commercial property Code was thoroughly modified in 2005 to fix what were perceived as executory-contract abuses such as gathering a big deposit and after that, if the purchaser fell behind, utilizing the eviction procedure to remove the purchaser as if the buyer disappeared than an ordinary renter.

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Since of this history, guidelines and restrictions now apply in deals where title is not right away communicated. Such agreements need to be taped, a through financial disclosure should be provided to the purchaser at closing, and the seller needs to supply an accounting statement every January. Purchasers also have a right to transform to a deed, note, and deed of trust.

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069(a) (1) requires that the seller offer the purchaser with a survey which is no older than a year, or a present plat. 5. 069(a)( 2) requires that the seller provide the buyer with copies of liens, restrictive covenants, and easements impacting the residential or commercial property. 5. 069(a)( 3) requires that a "Seller's Disclosure of Residential or commercial property Condition" be supplied by the seller.

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069(b) states that if the property is not situated in a tape-recorded neighborhood, then the seller is needed to provide a different disclosure kind stating utilities might not be readily available to the residential or commercial property till the neighborhood is tape-recorded. 5. 069(c) relates to advertising the availability of an executory contract.  A Good Read  needs that the ad divulge information relating to the availability of water, drain, and electric service.

070(a)( 1) requires the seller to provide the buyer with a tax certificate from the collector for each taxing unit that gathers taxes due on the property. 5. 070(a)( 2) needs the seller to provide the purchaser with a copy of any insurance plan, binder, or proof that indicates the name of the insurance company and guaranteed; a description of the insured property; and the policy amount.

Accordingly, contracts for deed and other executory agreements have fallen into disuse which was precisely the legislature's intent. Even if a seller wants to sustain the various limitations and possible liability included in engaging in a contract for deed, the SAFE Act licensing requirement still use. Note that the executory contract does not apply to business transactions.