Legal Disclosures
Important information about owner financing and your rights
Owner Financing Structure
Morton Property Group offers owner financing through a Contract for Deed (also known as an executory contract or land contract) as governed by Texas Property Code Chapter 5, Subchapter D.
What This Means:
- •You receive equitable title and full possession of the property at closing
- •The seller retains legal title as security until all payments are made
- •Upon completing all payments, the warranty deed transfers to you
- •The contract is recorded with the county for public record
Truth in Lending Disclosures
Before signing any financing agreement, you will receive a complete disclosure of all financing terms including:
You Will Be Told:
- • Cash price of the property
- • Down payment amount
- • Amount financed
- • Finance charge (total interest)
- • Total of payments
- • Annual Percentage Rate (APR)
- • Number and amount of payments
- • Payment due dates
Additional Costs (Buyer Responsibility):
- • Annual property taxes
- • Property insurance (if required)
- • Closing costs (if applicable)
- • Recording fees
- • Survey costs (if requested)
- • Title insurance (optional but recommended)
Payment Terms
Monthly Payments
Payments are due on the same day each month as specified in your contract. Payments include principal and interest. Property taxes are typically paid separately by the buyer.
Late Payments
Payments received after the grace period (typically 10-15 days) may be subject to a late fee. The specific grace period and late fee amount will be stated in your contract.
Typical late fee: 5% of monthly payment or $25, whichever is greater (varies by contract).
Prepayment
No prepayment penalties. You may pay off your balance early at any time without additional fees. Extra payments are applied directly to principal, reducing your total interest paid.
Balloon Payments (If Applicable)
If your financing includes a balloon payment, the full remaining balance will be due on the specified date. You should plan for this payment and may need to refinance if you cannot pay the balloon in full. Balloon payments carry refinancing risk.
Default and Remedies
What Constitutes Default:
- • Failure to make payments when due
- • Failure to pay property taxes
- • Failure to maintain required insurance
- • Violation of contract terms
Important: Default Risk Disclosure
If you default on a Contract for Deed and the default is not cured within the statutory period, you may forfeit all payments made, including your down payment. Unlike a traditional mortgage where you would have equity protection through a foreclosure process, a Contract for Deed forfeiture may result in total loss of your investment. Consider this risk carefully before purchasing.
Your Right to Cure
Under Texas Property Code Section 5.063, if you default, you have the right to cure the default. We must provide written notice of default and you will have at least 30 days to cure before any forfeiture proceeding can begin (60 days if you've paid 40% or more of the purchase price).
Our Commitment
We understand that financial difficulties can happen. If you're having trouble making payments, contact us immediately. We prefer to work with buyers to find solutions rather than pursue default remedies.
Your Rights Under Texas Property Code
Annual Accounting Statement
You are entitled to receive an annual statement showing the amount paid, the remaining balance, the number of payments remaining, and the amount paid to principal vs. interest. (Texas Property Code § 5.077)
Right to Convert to Deed of Trust
If you have paid 40% or more of the purchase price, OR made 48 or more monthly payments, you have the right to request that the contract be converted to a recorded deed of trust, which provides additional legal protections. (Texas Property Code § 5.081)
Deed Transfer Upon Completion
Upon making all required payments, the seller must transfer the deed to you within 30 days. (Texas Property Code § 5.069)
Required Disclosures
Before signing, you must receive disclosures about the property including: tax payment status, any liens or encumbrances, insurance requirements, and information about utilities and access. (Texas Property Code § 5.069)
Property Disclaimers
As-Is Sale: Properties are sold in "as-is" condition. While we strive to provide accurate information, buyers should conduct their own due diligence including property inspection, survey review, and verification of all representations.
Raw Land: Most properties are unimproved raw land. Utilities (electric, water, sewer) may not be available and may require significant investment to obtain. Buyers should verify utility availability and costs before purchasing.
Zoning and Use: Buyers should verify zoning, permitted uses, setback requirements, and any other restrictions with the appropriate county or municipal authorities before purchasing.
Flood Zones: Some properties may be located in or near flood zones. Buyers should verify flood zone status through FEMA and understand potential insurance requirements.
Access: Buyers should verify legal access to the property. Road maintenance responsibilities should be understood before purchasing.
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Questions About These Disclosures?
We're happy to explain any of these terms or answer questions about our financing process.
Contact UsThis page provides general information about our financing practices and is not legal advice. Consult with a licensed attorney for specific legal questions. Last updated: January 2026