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Does a seller have to pay rent to stay in the property past closing?

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08/31/2015 | Author: Editorial Staff

A seller received an offer on his home, but he needs to stay in the property for two weeks after the buyer’s proposed closing date. Both parties are OK with a temporary-lease situation, but the buyer’s agent says the Seller’s Temporary Residential Lease (TREC 15-5, TAR 1910) must have a daily rental amount in Paragraph 4 to be effective.

The seller says his agreement to sell the property with an early closing date should be sufficient consideration for the temporary rental and doesn’t want to pay a daily rental fee. Can the parties enter into an effective temporary lease without a daily rental amount in Paragraph 4?

Yes. Parties can negotiate a contract where no additional rental fee for the term of the temporary lease is required.

The other terms of this agreement to sell the property, which includes the temporary lease as part of the main contract, could provide sufficient consideration for the lease to be effective and enforceable without specifying additional monetary consideration for the temporary-lease term.

The same answer would apply to those using the Buyer’s Temporary Residential Lease (TREC 16-5, TAR 1911).

Get more legal questions and answers in the Legal FAQs section of TexasRealEstate.com.

Categories: Legal
Tags: legal faq, temporary lease, buyers, sellers

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The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on texasrealestate.com. Any legal or other information found here, on texasrealestate.com, or at other sites to which we link, should be verified before it is relied upon.

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