Property Ownership

Texas Property Code Chapter 5, Subchapter D, protects buyers in 'executory contracts' (contracts for deed, lease-purchase) by requiring sellers to provide:

AOnly a warranty on the title
BAnnual accounting statements, title verification, insurance disclosures, and other protections designed to prevent predatory seller-financing abuses✓ Correct
CTREC-approved disclosure forms only
DA guarantee of property value maintenance

Explanation

Texas Property Code Chapter 5 provides extensive protections for buyers in executory contracts (contracts for deed, lease-purchase, lease-option), including: annual statements accounting for payments and remaining balance, title verification, disclosure of liens, insurance requirements, and the right to convert to a deed upon certain conditions. These protections were enacted after abuses in colonias and elsewhere.

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