Owner Financing in Texas

Real property in Texas can legally be sold using owner or seller financing. After some recent changes in the law in 2005, two types of owner financing remain realistic in Texas: 1) The conventional owner finance used when there are no prior liens on the property and 2) The wraparound which involves deeding the property to the buyer and having the buyer make payments to the seller so that the seller can continue to pay the current lender.

A competent real estate attorney should be used in an owner finance transaction in Texas. The documents required in an owner financing transaction in Texas include:

• The Deed transferring title to the buyer
• The Note providing the obligations of payment
• The Deed of Trust as the security instrument

Owner financing has been a popular method of selling real estate in Texas and continues to thrive as a means for transferring property. A seller and buyer should consult with a real estate attorney before entering into a contract that calls for seller financing. Feel free to use the form below to request a consultation with an attorney or call our office.