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Texas · TREC 16-7Texas early move-in: the Buyer's Temporary Residential Lease (TREC 16-7)

When the buyer needs to move in before closing, Texas license holders use TREC No. 16-7, the Buyer's Temporary Residential Lease (version 11-03-2025, replacing 16-6). It is for use only when the buyer occupies the property for no more than 90 days before closing. At the start the buyer-tenant pays the daily rent for the expected term up to the contract's closing date; any difference is settled at closing, and no rent counts toward the price. The buyer also pays a lease deposit, which must be in addition to the earnest money; it is refunded at closing and funding, or within 30 days with itemized deductions if the lease ends first. The buyer accepts the property as is, but the seller must still make the repairs the contract requires. The lease ends at closing and funding, if the contract terminates, or on either party's default under the lease or the contract by the buyer – after which the buyer must move out, and a daily holdover amount applies.

What the form sets

  1. Use

    Only when the buyer occupies the property for no more than 90 days before closing.

  2. Rent

    Daily amount; the full rent to the contract's closing date is paid at the start; differences settled at closing (¶4).

  3. Deposit

    Separate from and in addition to the earnest money; refunded at closing, or within 30 days with itemized deductions (¶5).

  4. Condition

    Buyer accepts the property as is; seller still makes all repairs the contract requires (¶9).

  5. Alterations

    No holes or nails, no painting or decorating, no improvements without the seller's written consent (¶10).

  6. Ends

    At closing and funding, contract termination, or the tenant's default under the lease or the contract (¶18).

Risks to weigh before handing over keys

  • If the loan or appraisal fails, the buyer must move out; possession after termination is a tenancy at sufferance with daily damages (¶18–19).
  • Both sides keep their own insurance; the form warns that the buyer's possession may change the seller's coverage (¶16).
  • The buyer pays utilities and repairs during the lease, and indemnifies the seller against third-party claims (¶6, ¶14–15).

What the TC tracks

  • Lender approval of early occupancy, if the buyer is financing – ask before keys change hands.
  • Rent, the lease deposit and any rent adjustment on the settlement statement.
  • Move-in date, insurance confirmations from both parties, and the closing date the rent was based on.

Questions buyers and sellers ask

Can a buyer move in before closing in Texas?

Yes, with a lease such as TREC 16-7, which is for use only when the buyer occupies the property for no more than 90 days before closing.

Is the lease deposit the same as earnest money?

No. TREC 16-7 says the deposit must be in addition to the earnest money under the contract (¶5).

What happens if the sale falls through after the buyer moved in?

The lease ends when the contract terminates and the buyer must surrender possession; staying longer triggers daily holdover damages (¶18–19).

Related guides

Track the move-in date, the lender's consent, insurance confirmations and the rent adjustment as tasks with an owner and due date in ClosingCode.

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Source: Texas Real Estate Commission, TREC No. 16-7 Buyer's Temporary Residential Lease (11-03-2025), trec.texas.gov, read October 25, 2026.

General information, not legal advice. ClosingCode is software; it is not a law firm or brokerage. TREC forms are for use by trained license holders. This guide is not a substitute for the advice or services of an attorney.