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Texas Seller’s Temporary Residential Lease

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SELLER’S TEMPORARY RESIDENTIAL LEASE

EQUAL HOUSING OPPORTUNITY
(NOTICE: For use only when SELLER occupies the property for no more than 90 days AFTER the closing)
PROMULGATED BY THE TEXAS REAL ESTATE COMMISSION (TREC)

1. PARTIES: The parties to this Lease are (Landlord) and (Tenant).

2. LEASE: Landlord leases to Tenant the Property described in the Contract between Landlord as Buyer and Tenant as Seller dated , , and known as (address).

3. TERM: The term of this Lease commences on the date the sale covered by the Contract is closed and terminates , unless terminated earlier by reason of other provisions.

4. RENTAL: Tenant shall pay to Landlord as rental $ per day with the full amount of rental for the term of the Lease to be paid at the time of funding of the sale. Tenant will not be entitled to a refund of rental if this Lease terminates early due to Tenant’s default or voluntary surrender of the Property.

5. SECURITY DEPOSIT: Tenant shall pay to Landlord at the time of funding of the sale $ as a deposit to secure performance of this Lease by Tenant. Landlord may use the deposit to satisfy Tenant's obligations under this Lease. Landlord shall refund any unused portion of the deposit to Tenant with an itemized list of all deductions from the deposit within 30 days after Tenant (a) surrenders possession of the Property and (b) provides Landlord written notice of Tenant’s forwarding address.

6. UTILITIES: Tenant shall pay all utility charges except , which Landlord shall pay.

7. USE OF PROPERTY: Tenant may use the Property only for single family dwelling purposes. Tenant may not assign this Lease or sublet any part of the Property.

8. PETS: Tenant may not keep pets on the Property except .

9. CONDITION OF PROPERTY: Tenant accepts the Property in its present condition and state of repair at the commencement of the Lease. Upon termination, Tenant shall surrender the Property to Landlord in the condition required under the Contract at the time of closing, except normal wear and tear and any casualty loss.

10. ALTERATIONS: Tenant may not alter the Property or install improvements or fixtures without the prior written consent of Landlord. Any improvements or fixtures placed on the Property during the Lease become the property of Landlord.

11. SPECIAL PROVISIONS:

12. INSPECTIONS: Landlord may enter at reasonable times to inspect the Property.

13. LAWS: Tenant shall comply with all applicable laws, restrictions, ordinances, rules and regulations with respect to the Property.

14. REPAIRS AND MAINTENANCE: Tenant shall bear all expense of repairing and maintaining the Property, including but not limited to yard, trees and shrubs, unless otherwise required by the Texas Property Code. Tenant shall promptly repair at Tenant's expense any damage to the Property caused directly or indirectly by any act or omission of the Tenant or any person other than Landlord, Landlord's agents or invitees.

15. INDEMNITY: Tenant indemnifies Landlord from the claims of all third parties for injury or damage to the person or property of such third party arising from the use or occupancy of the Property by Tenant. This indemnification includes attorney’s fees, costs and expenses incurred by Landlord.

16. INSURANCE: Landlord and Tenant shall each maintain such insurance on the contents and Property as each party may deem appropriate during the term of this Lease.

NOTE: CONSULT YOUR INSURANCE AGENT PRIOR TO CLOSING. Possession of the Property by Seller as Tenant may change insurance policy coverage.

17. DEFAULT: If Tenant fails to perform or observe any provision of this Lease and fails, within 24 hours after notice by Landlord, to commence and diligently pursue to remedy such failure, Tenant will be in default.

18. TERMINATION: This Lease terminates upon expiration of the term specified in Paragraph 3 or upon Tenant’s default under this Lease.

19. HOLDING OVER: Tenant shall surrender possession of the Property upon termination of this lease. Any possession by Tenant after termination creates a tenancy at sufferance and will not operate to renew or extend this Lease. Tenant shall pay $ per day during the period of any possession after termination as damages, in addition to any other remedies to which Landlord is entitled.

20. ATTORNEY’S FEES: The prevailing party in any legal proceeding brought under or with respect to the transaction described in this lease is entitled to recover from the non-prevailing party all costs of such proceeding and reasonable attorney’s fees.

21. SMOKE DETECTORS: The Texas Property Code requires Landlord to install smoke detectors in certain locations within the Property at Landlord’s expense. Tenant expressly waives Landlord’s duty to inspect and repair smoke detectors.

22. SECURITY DEVICES: The requirements of the Texas Property Code relating to security devices do not apply to a residential lease for a term of 90 days or less.

23. CONSULT YOUR ATTORNEY: Real estate licensees cannot give legal advice. This Lease is intended to be legally binding. READ IT CAREFULLY. If you do not understand the effect of this Lease, consult your attorney BEFORE signing.

24. NOTICES: All notices under this Lease from one party to the other must be in writing are effective when delivered or transmitted by facsimile machine as follows:

To Landlord:

Facsimile: ( )

To Tenant:

Facsimile: ( )

EXECUTED the day of .

Landlord

Tenant

Landlord

Tenant

The form of this contract has been approved by the Texas Real Estate Commission. Such approval relates to this contract only. TREC forms are intended for use only by trained real estate licensees. No representation is made as to the legal validity or adequacy of any provision in any specific transaction. It is not suitable for complex transactions. Extensive riders or additions are not to be used. (12-98) Texas Real Estate Commission, P.O. Box 12188, Austin, TX 78711-2188, 1-800-250-8732 or (512)459-6544 (http://www.trec.state.tx.us) TREC NO. 15-3. This form replaces TREC NO. 15-2.

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What the Texas Seller’s Temporary Residential Lease is and when it applies

The Texas Seller’s Temporary Residential Lease is a short-term agreement used when a property seller needs to remain in or occupy the residence after closing, or when a buyer allows the seller a temporary occupancy period before transfer of possession. The form defines parties, property, term, rent (if any), security deposit handling, and move-out conditions while preserving rights tied to the sale transaction. It is typically used in leaseback or post-closing occupancy arrangements and complements the primary purchase contract by documenting interim occupancy terms, liabilities, and insurance responsibilities.

Why a clear temporary lease matters in a residential sale

A written Texas Seller’s Temporary Residential Lease protects buyers and sellers by documenting occupancy dates, liability allocation, deposits, and remedies for default, reducing disputes and clarifying responsibilities during the transition period.

Why a clear temporary lease matters in a residential sale

Who commonly completes this temporary lease

The Texas Seller’s Temporary Residential Lease is most often prepared by the parties to a property sale, listing or buyer’s agents, and closing/title professionals to ensure occupancy terms are recorded.

  • Listing agents and brokers coordinating post-closing occupancy terms for sellers.
  • Buyers or buyer agents requiring clear possession and damage remediation standards.
  • Title officers and closing agents documenting occupancy status for lender requirements.

Clear assignment of responsibilities at signing reduces escrow disputes and helps title and insurance processes proceed without delay.

Primary roles who sign the lease

Seller

The seller signs to accept temporary occupancy conditions, acknowledge any rent or deposit terms, and confirm responsibilities for utilities, maintenance, and insurance during the holdover period. The signature binds the seller to vacate by the agreed date and permits the buyer to enforce remedies for breach.

Buyer

The buyer signs to permit temporary occupancy, document possession dates, and set conditions for inspections, keys, and deposits. The buyer’s signature defines their rights to inspect, recover damages, and withhold agreed amounts from escrow if the seller fails to vacate or causes damage.

Key sections to include in a professional temporary lease

A complete Texas Seller’s Temporary Residential Lease should be explicit and self-contained. Include clear definitions of term, possession, financial obligations, condition standards, insurance and indemnity, and early-termination remedies to avoid later disputes.

Parties and Property

Identify buyer and seller by full legal name, specify the property address and legal description, and note any unit numbers or common-area access details so the occupancy scope is unambiguous and enforceable.

Term and Possession

State the exact occupancy start and end dates in MM/DD/YYYY format, include any hourly cutoff on move-out day, and specify whether possession is conditioned on closing or other contingencies.

Rent and Deposits

Describe any post-closing rent amount, payment frequency, where payments are delivered, and security deposit handling with details on inspection, allowable deductions, and return timing.

Utilities, Maintenance, and Repairs

Allocate responsibility for utilities, routine upkeep, and repair costs during the temporary term; note obligations to maintain insurance and to return the property in agreed condition.

Insurance and Indemnity

Require the occupying party to maintain property and liability insurance, name the buyer as additional insured where appropriate, and include indemnity language for damage or injury arising during occupancy.

Default and Remedies

Specify remedies for holdover or damage (e.g., accelerated rent, eviction costs, escrow offsets), notice periods, and whether attorney fees or collection costs are recoverable for enforcement.

Step-by-step: completing the lease from drafting to occupancy

Follow these sequential steps to prepare and execute the Texas Seller’s Temporary Residential Lease properly and reduce closing friction.

  • 01
    Draft terms: Populate parties, dates, rent, deposit, and insurance clauses accurately.
  • 02
    Review with agents: Have listing and buyer agents confirm alignment with purchase contract.
  • 03
    Sign and deliver: Obtain signatures and distribute copies to buyer, seller, and title.
  • 04
    Inspect and document: Complete a move-in condition report and retain photos for dispute resolution.

Configuring an online workflow for the temporary lease

Set up a clear digital workflow to collect signatures, verify identities, and store the signed lease alongside closing documents.

Field Configuration
Auto-fill Seller Use template fields mapped to listing data to reduce typing errors
Signer Order Set buyer or title to sign first if permission precedes seller signature
Authentication Enable email verification or SMS code to strengthen signer attribution
Document Retention Save signed PDF and audit trail to closing folder for compliance

Digital signing considerations and integrations

Use an eSignature platform that supports secure identity verification, audit trails, and exportable signed PDFs to align with closing workflows.

  • Identity Checks: Email, SMS, or KBA options
  • Integrations: Connect with CRMs and title systems
  • Formats: Export PDF/A and audit logs

Choose a platform compatible with your title company and capable of producing a tamper-evident PDF and supporting the jurisdictional authentication your closing requires.

Routing the lease and finalizing delivery

A standard routing streamlines review and preserves an audit trail for closing and post-closing enforcement.

  • Upload Document: Sender uploads the finalized lease PDF to the signing platform
  • Place Fields: Add signature, initials, date, and payment fields where needed
  • Set Recipients: Define buyer, seller, title, and agent recipient emails
  • Collect Signatures: Platform records timestamps, IP addresses, and audit trail

Essential information to include on the lease

Seller Name: Full legal name
Buyer Name: Full legal name
Property: Complete address
Term Dates: MM/DD/YYYY format
Rent: Exact dollar amount
Deposit: Amount and holding location

Supporting documents and export options

Attach or retain supporting items with the lease and export signed copies in standard formats to ensure compatibility with title and lender requirements.

Move-in Inspection

Include a dated condition report with photos to document pre-occupancy condition and reduce deposit disputes at termination.

Closing Statement

Attach the HUD-1 or closing disclosure to show any rent/credits tied to the sale and avoid double billing.

Insurance Certificates

Attach liability insurance or additional insured endorsements required during temporary occupancy to protect buyer interests.

Export Formats

Save signed documents as PDF/A for long-term retention and as searchable PDF for indexing.

Common dates and deadlines to track in the lease

Track these critical dates to coordinate closing, occupancy, inspections, and deposit returns accurately.

Possession Start:

Date when temporary occupancy begins

Possession End:

Date by which seller must vacate

Security Deposit Return:

Deadline for return and itemized deductions

Move-out Inspection:

Date and time for final condition inspection

Rent Due Date:

Monthly due date if rent applies

Common mistakes to avoid when preparing the lease

  • Using vague term dates like 'two weeks' rather than exact MM/DD/YYYY dates, which creates enforceability ambiguity.
  • Failing to address who pays utilities, leading to disputes and possible interruption of services that affect property condition.
  • Omitting inspection photos or move-in condition documentation, which increases the chance of deposit disputes.
  • Neglecting to coordinate lease terms with the purchase contract or lender requirements, causing closing delays.

Consequences of an incorrect or incomplete temporary lease

Possession Disputes: Costly evictions or legal actions
Deposit Loss: Unclear deductions lead to litigation
Insurance Gaps: Claims not covered during occupancy
Closing Delays: Title/lender holds for unclear occupancy
Liability Exposure: Buyer may assume unexpected risks
Recordkeeping Failure: Loss of evidence for enforcement

eSignature vendor comparison relevant to the temporary lease workflow

Compare entry-level pricing and core features for common eSignature vendors; signNow is listed first per platform alignment with closing workflows.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

How a temporary lease differs from common alternatives

Compare the Texas Seller’s Temporary Residential Lease with other post-closing arrangements to choose the correct document type.

Document Type Temporary Lease Leaseback Standard Lease
Primary Purpose short-term occupancy seller remains as tenant long-term rental
Typical Term days–weeks months–years months–years
Tied to Sale often yes
Recording Needed rarely rarely sometimes

Frequently asked questions about the Texas Seller’s Temporary Residential Lease

Answers to common questions help practitioners avoid execution and enforcement pitfalls in post-closing occupancy arrangements.


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