Legal FAQs for REALTORS®
— Contracts and Forms
My seller is closing next week, but will stay in the property for 30 days after closing under a temporary lease. Does the buyer still get a set of keys at closing? (updated May 19, 2015)
Yes. The Seller’s Temporary Residential Lease (TAR 1910, TREC 15-5) states that a tenant will provide the landlord door keys and access codes so he or she may enter the property at reasonable times to inspect it during the term of the lease or to otherwise access it as allowed by the lease. However, the buyer cannot occupy the property until after the termination date stated in the seller’s lease, unless it’s terminated earlier by reason of other provisions.
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? (updated August 18, 2014)
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).
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