The short answer
A Texas seller leaseback lets the seller remain in the home as a tenant after the sale closes and funds. TREC’s current Seller’s Temporary Residential Lease, Form 15-7, is for occupancy of no more than 90 days after closing. The buyer becomes the landlord and the seller becomes the tenant, so the parties must agree in writing on the end date, daily rent, deposit, utilities, repairs, access, insurance, pets, condition, and holdover damages.
One of the hardest parts of moving up in Plano, Frisco, McKinney, Little Elm, Aubrey, or elsewhere in North DFW is getting two closings and one move to cooperate.
Selling first can create certainty about net proceeds and may make the next purchase easier to plan. But it can also leave the seller asking, “Where do I live between closings?”
A temporary seller leaseback may create breathing room. It is not simply permission to stay a few extra days. Ownership has transferred, money has funded, and the former seller is now occupying someone else’s property under a lease.
The current Texas form
The Texas Real Estate Commission’s current Seller’s Temporary Residential Lease, Form 15-7, became effective January 5, 2026. TREC says it is used only when the seller occupies the property for no more than 90 days after the purchase closes.
Under the form:
- The buyer under the sales contract becomes the landlord.
- The seller becomes the tenant.
- The lease begins when the sale closes and funds.
- The parties insert a specific termination date.
When the standard form may not fit
For a longer or more complex arrangement, TREC warns that its promulgated form may not be suitable. The parties should obtain legal advice rather than trying to stretch a temporary form beyond its intended use.
Daily rent and payment timing
Form 15-7 uses a daily rental amount. The full rental for the lease term is paid at funding, excluding the day of closing and funding.
The form also states that the tenant is not entitled to a rent refund if the lease ends early because of the tenant’s default or voluntary surrender. The completed agreement controls the numbers and any negotiated special provisions.
A practical rent conversation should consider the buyer’s post-closing ownership costs, the value of occupancy, and the timing benefit to both parties. Do not assume the leaseback must be free or that the buyer’s mortgage payment automatically determines the correct amount.
Deposit and move-out condition
The parties insert a deposit amount to secure the seller-tenant’s lease obligations. The current form says the buyer-landlord must return any unused portion with an itemized list of deductions within 30 days after the tenant both surrenders possession and gives written notice of a forwarding address.
That makes documentation important:
- Complete the final walkthrough required by the sale contract.
- Record the property’s condition when the lease begins.
- Clarify any permitted remaining personal property.
- Document keys, remotes, access codes, and move-out delivery.
- Provide the forwarding address in writing.
- Record condition again when possession is surrendered.
Surrender condition
The form requires surrender in the condition required under the purchase contract, except for normal wear and tear and casualty loss.
Utilities, pets, access, and repairs
The form allocates utilities, allows the parties to state permitted pets, and limits use to residential purposes. The seller-tenant may not assign the lease or sublet any part of the property.
It also allows the buyer-landlord to enter at reasonable times to inspect and requires keys and access codes during the lease term.
Form 15-7 generally places repair and maintenance expenses on the tenant unless the lease or Texas Property Code requires otherwise. It also says the tenant must promptly repair damage caused by the tenant or other persons who are not the landlord, the landlord’s agents, or invitees.
Because maintenance and casualty questions can become complicated quickly, any requested change should be written into the agreement by a qualified professional rather than assumed.
Insurance changes after closing
The form includes an all-capital warning: possession by the seller as tenant may change insurance-policy coverage.
The seller’s former homeowners policy may no longer fit because the seller no longer owns the property. The buyer’s owner-occupant policy may also require accurate information about post-closing occupancy. Both parties should contact their insurance professionals before closing and obtain written confirmation of the coverage appropriate to their roles.
Do not assume the purchase contract, the old homeowner policy, or a standard renters policy automatically solves every risk.
Holding over can be expensive
The parties insert a daily holdover-damages amount for possession after the lease terminates. The form says that amount is in addition to other remedies available to the landlord.
That number should be meaningful. A buyer may have movers scheduled, a current lease ending, a lender occupancy requirement, or no alternative housing. A seller may face a delayed new-home closing or move.
Before agreeing, build a backup plan for:
- a delayed purchase closing;
- movers or storage falling through;
- repairs at the next home;
- illness or travel disruption;
- a dispute about condition or possession;
- the seller needing more than 90 days.
When a leaseback may fit a move-up plan
A seller leaseback can be useful when:
- the current home can sell before the next home is ready;
- the seller wants confirmed sale proceeds before the next closing;
- a short occupancy period can prevent an immediate temporary move;
- the buyer’s timing and loan occupancy requirements allow the arrangement;
- the parties can agree on clear financial and condition terms.
When a leaseback may be a poor fit
It may be a poor fit when the timing is uncertain, the buyer needs immediate possession, insurance is unresolved, lender occupancy requirements conflict, the relationship requires complex provisions, or the seller expects to remain longer than 90 days.
Clarissa can help map the real-estate timing and complete standard forms within her licensed role. A lender must address financing and occupancy requirements; insurance professionals must address coverage; an attorney should address legal interpretation or complex provisions.
Planning to sell and move up in North DFW?
Planning to sell and move up in North DFW? Clarissa can map the sale closing, next-home timing, leaseback window, financing checkpoints, and fallback plan before you commit to two sets of dates. Call or text 469-253-7506 or request a no-pressure strategy call at https://www.clarissasellsitalldfw.com/contact.
Related guides
Frequently asked questions
How long can a seller stay under TREC Form 15-7?
TREC says the form is for a seller’s occupancy of no more than 90 days after closing. A longer or complex arrangement needs different legal guidance and documentation.
Who owns the home during the leaseback?
The sale has closed and funded, so the buyer owns the property and becomes the landlord. The former seller occupies as the tenant.
Is rent paid monthly?
The current form uses daily rent and calls for the full amount for the lease term to be paid at funding. The completed agreement controls the amount and dates.
What happens to the deposit?
Form 15-7 says the unused portion is returned with an itemized deduction list within 30 days after the tenant surrenders possession and provides written notice of a forwarding address.
Who pays for repairs during a seller leaseback?
The current form generally puts repair and maintenance expenses on the seller-tenant unless otherwise stated or required by the Texas Property Code. Review the actual agreement and obtain legal advice for questions or changes.
What happens if the seller does not leave on time?
The form provides for a negotiated daily holdover-damages amount in addition to other available remedies. The parties should choose the number carefully and have a backup plan before closing.
Do both parties need to talk to their insurance companies?
Yes. The TREC form warns that the seller’s post-closing possession may change insurance coverage. Both parties should confirm their coverage before closing.
Sources
- Texas Real Estate Commission — Seller’s Temporary Residential Lease — Form 15-7 — as of Effective January 5, 2026; rechecked October 27, 2026
- Texas Real Estate Commission — Form 15-7 PDF — as of Form revision dated November 3, 2025 and listed by TREC as effective January 5, 2026; rechecked October 27, 2026
General education only, not legal, lending, landlord-tenant, or insurance advice. Actual rights and obligations depend on the completed lease, purchase contract, insurance policies, lender requirements, facts, and Texas law. TREC states its forms are intended for trained license holders and are not intended for complex transactions. Consult a Texas real-estate attorney for legal advice and the appropriate lender and insurance professionals for occupancy and coverage questions.