Buying On A Land Contract
Prop. Code 5.064 — 30 days to cure, and a trustee's sale instead of forfeiture after 40 percent
In Texas, a seller under an executory contract for the conveyance of real property may enforce rescission, or forfeiture and acceleration, against a purchaser in default only after notifying the purchaser of that intent and of the right to cure within the 30-day period, and only if the purchaser fails to cure, the equity protection section does not apply, and the contract has not been recorded.
Thirty days to cure, whatever the contract says. Notwithstanding an agreement to the contrary, a purchaser in default avoids those remedies by complying with the contract on or before the 30th day after the notice is given.
The notice. It is in writing, sent by registered or certified mail, return receipt requested, printed in 14-point boldface type, with a separate page warning that the seller has the right to take possession unless the specified action is taken by a stated date, and it itemizes what is claimed.
Forty percent, 48 payments, or a recorded contract. Once the purchaser has paid 40 percent or more of the amount due or the equivalent of 48 monthly payments, or the contract has been recorded, the seller may not forfeit. Instead the seller may sell the purchaser's interest through a trustee, after a notice allowing at least 60 days to cure, and any excess over the debt goes to the purchaser.
Converting to a deed. At any time and without penalty, the purchaser may convert to recorded legal title, by paying the balance or by delivering a promissory note for the balance on the same terms along with a deed of trust. On or before the 10th day after receiving the note, the seller either schedules the signing or explains in writing why it refuses.
| The assumption | What the law actually does |
|---|---|
| The assumptionFalling behind on a contract for deed means losing everything paid | What the law actually doesAfter 40 percent or 48 monthly payments, the remedy is a trustee's sale with any excess to the purchaser |
| The assumptionThe seller decides when the buyer gets a deed | What the law actually doesThe purchaser may convert to recorded legal title at any time, without penalty |
Mortgages, leases with an option to buy, and the details of a forfeiture or foreclosure case are not all on this page. Whether a particular agreement is a land contract under the statute, and what it allows, is a question for a licensed Texas attorney.
Sources for this section (5)
- Prop. Code 5.064 — Executory contracts: seller's remedies on default
- Prop. Code 5.063 — Executory contracts: notice
- Prop. Code 5.065 — Executory contracts: right to cure default
- Prop. Code 5.066 — Executory contracts: equity protection; sale of property
- Prop. Code 5.081 — Executory contracts: right to convert contract
Legal information, not legal advice. Verified as of September 2026. Applying it to a particular situation is the work of a licensed Texas attorney.