Contracts
In Texas, a residential lease with an option to purchase is treated as:
AAn executory contract subject to Texas Property Code Chapter 5 protections✓ Correct
BA simple lease with no special protections
CA recorded deed
DA TREC-promulgated form transaction only
Explanation
Under Texas Property Code Chapter 5, lease-option agreements (lease with option to purchase) are treated as executory contracts with significant consumer protection requirements including disclosure of title condition, tax status, insurance, and utility services. Violations can result in the seller being required to provide a deed.
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