Texas · TREC 51-1 · ¶4ATexas Addendum Regarding Residential Leases (TREC 51-1): selling with tenants
When a Texas home is leased, ¶4A of the TREC contract attaches the Addendum Regarding Residential Leases (51-1). The parties check A – all residential leases terminated by closing, with possession delivered free of tenants – or B – leases assigned to and assumed by the buyer. Under B the seller delivers copies within 3 days if the buyer does not have them, transfers security deposits at closing, and the buyer gives each tenant a signed statement of the exact deposit amount (Property Code §92.105).
The two options
A. Terminate by closing
All residential leases must be terminated by closing and possession delivered under ¶10 with no tenant in possession. The addendum itself does not end any lease – the form tells the parties to check the lease's termination rights and consult an attorney.
B. Assign and assume
Existing leases are assigned by the seller and assumed by the buyer at closing.
Lease delivery (B(1))
If the buyer has not received all leases, the seller provides them within 3 days after the Effective Date; the buyer may terminate within the number of days written after receiving them, with the earnest money refunded. Oral leases are listed with tenant, rent and term.
Deposits (B(2))
At closing the seller transfers security deposits and the buyer delivers to each tenant a signed statement acknowledging responsibility for the deposit and its exact amount.
If a lease representation becomes untrue (B(4))
Promptly
Seller notifies buyer
The seller represents, to its knowledge, that leases are in force, no tenant is in default, no rent is prepaid, no offsets, claims or disputes exist.
7 days
Seller cures
The seller must cure the condition within 7 days after the notice.
+5 days
Buyer may terminate
If still untrue, the buyer may terminate within 5 days after the 7-day period, with the earnest money refunded; otherwise the right is waived. Closing extends daily as needed.
What the TC tracks
- Which box – A or B – is checked, and ¶4A in the contract.
- Under B: lease copies received within 3 days and the buyer's review deadline.
- Security deposits and prepaid rent on the settlement statement.
- The buyer's signed deposit statement to each tenant after closing.
Questions about selling a Texas home with tenants
Can you sell a house in Texas with a tenant in it?
Yes. The TREC Addendum Regarding Residential Leases (51-1) either requires leases to be terminated by closing or has the buyer assume them.
Does the addendum terminate the tenant's lease?
No. The form warns that paragraph A will not amend or terminate an existing lease; the lease's own termination rights control.
Who gets the tenant's security deposit when a Texas rental is sold?
Under option B the seller transfers it at closing, and the new owner becomes liable for returning it from the date title is acquired (Property Code §92.105).
What statement must the buyer give the tenant?
A signed statement acknowledging that the buyer acquired the property and is responsible for the security deposit, with the exact dollar amount.
Can the seller sign a new lease after the contract?
Not without the buyer's written consent – the seller may not execute or amend any residential lease.
Related guides
Track the 3-day lease delivery, the buyer's review deadline and the deposit statements as tasks with owners and due dates in ClosingCode – deadlines recompute when the effective date changes.
Start free trialSource: TREC Addendum Regarding Residential Leases 51-1 (11-07-2022) (trec.texas.gov); Texas Property Code §92.105 (statutes.capitol.texas.gov), read October 24, 2026.
General information, not legal advice. ClosingCode is software; it is not a law firm or brokerage.