Texas Local Government Code - LOC GOV'T § 252.050. Lease-Purchase or Installment Purchase of Real Property

(a) This section applies only to a lease-purchase or installment purchase of real property financed by the issuance of certificates of participation.

(b) The governing body of a municipality may not make an agreement under which the municipality is a lessee in a lease-purchase of real property or is a purchaser in an installment purchase of real property unless the governing body first obtains an appraisal by a qualified appraiser who is not an employee of the municipality.  The purchase price may not exceed the fair market value of the real property, as shown by the appraisal.