All such devices now fall under the extensive rules and penalty provisions of Property Code sections 5.061 et seq.Contracts for deed, lease-purchases, and lease-options for longer than 180 days are unambiguously defined as executory contracts.That is not all, since a claim may also be made under the Deceptive Trade Practices-Consumer Protection Act (“DTPA”) which can result in treble damages plus attorney’s fees.Add up the numbers and one can easily see that the potential downside is significant.Residents who leave housing without proper authorization for contract cancellation will be held responsible to the terms of their housing contract.Simply moving out or turning in keys does not constitute release from contractual obligations.
In accordance with the terms and conditions of our __(type of contract)__ Contract, it clearly states in the __(name of section – i.e.Contracts for deed, lease-purchases, and lease-options have long been traditional tools of Texas residential real estate investors. Because it was easy to induce tenant/buyers into such arrangements (with a minimal down payment) and easy to evict them using the forcible detainer process if they defaulted. Since 2005, these devices are considered “executory contracts” and are heavily regulated under Chapter 5 of the Property Code. Numerous initial and ongoing requirements must be observed, and the burden is on the seller to meet these.Violation entitles the purchaser to cancel and rescind the contract and receive a full refund of payments made to the seller.Once the contract is signed, students have 72 hours to cancel without penalty.After 72 hours, restrictions will apply and requests will be reviewed but cannot be guaranteed.