Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

Which document must be prepared by a licensed attorney in Texas for lease options or lease purchases?

1. Lease Agreement

2. Option Agreement

3. Sale-Leaseback Agreement

4. Graduated Lease

The correct answer is: Option Agreement

In Texas, lease options or lease purchase agreements are complex documents that often involve both leasing and sales elements. The option agreement is a critical part of this process, granting the tenant the right to purchase the property at a specified price within a certain timeframe. Because of the legal complexities and potential implications for both parties involved in such arrangements, Texas law requires that these agreement documents be prepared by a licensed attorney. The option agreement establishes terms not only for leasing but also for potential sale, which can lead to disputes if not clearly defined and legally binding. Given the dual nature of lease options or lease purchases, having an attorney draft the option agreement helps ensure conformity with state laws and protects the interests of both the lessor and lessee. Other documents like lease agreements, sale-leaseback agreements, and graduated leases, while legally important, typically do not carry the same requirement for attorney preparation in these specific contexts. Therefore, the necessity for an attorney's involvement is particularly emphasized for option agreements in lease options or lease purchases.