A temporary residential lease is the TREC form you use when someone holds the keys on the wrong side of closing. The Seller’s Temporary Residential Lease (TREC No. 15-7) covers a seller who stays no more than 90 days after closing. The Buyer’s Temporary Residential Lease (TREC No. 16-7) covers a buyer who moves in no more than 90 days before closing. Without a written lease, TREC’s resale contract says the arrangement becomes a tenancy at sufferance.
Brock Bremmer | U.S. Air Force Reserves Veteran | Real Estate Agent | eXp Realty | San Antonio Metro Area
Buyer & Seller Specialist
Also see: Buying a New Build Before You Sell | The Texas Option Period | How Long a Build Takes
Why Does Possession Timing Matter in Texas?
Paragraph 10 of TREC’s One to Four Family Residential Contract (Resale), form 20-19, gives two choices. The seller delivers possession upon closing and funding, or according to a TREC temporary residential lease or another written lease. It then says any possession by the buyer before closing, or by the seller after closing, that isn’t covered by a written lease creates a tenancy at sufferance. The form also warns you to call your insurance agent, because coverage may be limited or end when ownership and possession change.
The current versions of both lease forms are dated November 3, 2025. Form 15-7 replaced 15-6, and 16-7 replaced 16-6.
When Does a Seller’s Lease Make Sense?
The most common reason I see is timing. You’re selling your current home to buy a new build, and the new house isn’t finished yet. A short leaseback lets you close your sale, use the cash, and stay put until your builder closing. It’s one of the tools covered in buying a new build before you sell.
Here’s what form 15-7 sets out:
- Term: it starts when the sale closes and funds, and it’s for stays of no more than 90 days.
- Rent: a daily amount, with the full term paid at funding. There’s no refund if the seller defaults or leaves early on their own.
- Deposit: paid at funding. The buyer refunds any unused part with an itemized list of deductions within 30 days after the seller moves out and gives a forwarding address.
- Utilities and upkeep: the seller pays utilities except any the parties list, and handles repairs and yard care unless the Property Code requires otherwise.
- Holdover: staying past the end date costs a daily amount the parties fill in, plus other remedies.
- Condition: the seller returns the home in the condition the contract requires, except normal wear and tear and casualty loss.
Build-schedule risk is real. If your new home slips past 90 days, you need a backup plan. Ask your builder for a realistic completion window before you set the lease term. See how long a new build takes.
When Does a Buyer’s Lease Make Sense?
A buyer’s lease lets you move in before closing, usually because your lease is ending or you’re arriving on a set date. Form 16-7 covers stays of up to 90 days before closing:
- Rent: a daily rate, with the full anticipated term (from move-in to the contract closing date) paid up front. Any difference gets settled at closing, and rent isn’t credited toward the price or other contract items.
- Utilities: the buyer pays utility connections, deposits, and charges except any listed.
- Access: the seller may enter at reasonable times to inspect, replace, repair, or complete improvements.
- If the deal falls apart: the buyer moves out and leaves the home in its present condition, as improved by the seller, except normal wear and tear and casualty loss.
The biggest risk is moving in before your loan is final. If financing fails, you’re moving twice. Get loan approval as far along as possible first. See the Third Party Financing Addendum.
Does This Apply When You Buy From a Builder?
Usually not in the same way. Production builders generally write their own purchase contracts instead of using TREC’s resale form. If your builder’s contract doesn’t mention early possession, assume you get keys at closing and funding, and ask in writing if you need anything different. The seller’s lease still matters on the home you’re selling. See what to look for in a builder contract.
What Should You Settle Before Signing Either Lease?
- Call your insurance agent. Both forms warn that possession by the other party may change your coverage.
- Tell your lender. Your loan may have its own occupancy rules. VA buyers should read VA occupancy rules.
- Fill in every blank: daily rent, deposit, end date, holdover rate, pets, and utilities.
- Time the walkthrough. On a leaseback, plan a final look after the seller moves out, before the deposit gets refunded.
- Know the security-device exception. Both forms note the Property Code’s security-device rules don’t apply to a residential lease of 90 days or less.
Both forms tell you to consult an attorney, and TREC notes its forms aren’t meant for complex transactions. If your situation is unusual, get legal advice. My video The Truth About Making Offers on New Construction Homes in San Antonio covers how timing plays into a new-build offer.
Frequently Asked Questions
How long can a seller stay after closing in Texas?
On TREC’s promulgated Seller’s Temporary Residential Lease (TREC No. 15-7), no more than 90 days after closing. The seller prepays the daily rent at funding and pays a deposit. Longer stays need a different written lease that the parties and their lenders agree to.
Can a buyer move in before closing in Texas?
Yes, with a written lease. TREC’s Buyer’s Temporary Residential Lease (TREC No. 16-7) is for a buyer who occupies the property no more than 90 days before closing. Without a written lease, TREC’s resale contract says early possession creates a tenancy at sufferance.
Need to Line Up Two Closings?
Brock Bremmer with eXp Realty is a U.S. Air Force Reserves veteran with 130+ homes sold across the San Antonio metro and an eXp ICON agent (2023–24). He helps clients time a sale and a new-build purchase so the move-out and move-in dates actually line up in San Antonio, New Braunfels, and Boerne.
- 📞 Call or text: 210-501-5088
- 📧 Email: [email protected]
- 📅 Schedule a free consultation
Also see: Getting Earnest Money Back | Setting Up Utilities | Quick Move-In vs. Building
Sources: TREC No. 15-7, Seller’s Temporary Residential Lease; TREC No. 16-7, Buyer’s Temporary Residential Lease; TREC No. 20-19, One to Four Family Residential Contract (Resale); Texas Real Estate Commission (accessed November 11, 2026).