Using a "Rent-Back" Agreement to Stay in Your Sold Home Until the Builder Gives You the Keys

Direct Answer

In Texas, a Seller’s Temporary Residential Lease (TREC Form 15-7, updated January 2026) allows a seller to remain in their property for up to 90 days after closing. This is the gold standard for move-up buyers in DFW who need to synchronize their sale proceeds with their new construction timeline. Under this agreement, the buyer officially becomes the landlord and the seller becomes the tenant, paying a negotiated daily rental rate (usually based on the buyer's new mortgage costs: Principal, Interest, Taxes, and Insurance). In 2026, a key legal update has removed the requirement for landlords to provide a "Floodplain and Flood Notice" for these short-term leases, simplifying the paperwork. This agreement ensures you only move once—directly from your old home into your brand-new build.

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1. The Mechanics of the 2026 TREC Leaseback

In North Texas, the leaseback is not a separate lease but a two-page addendum to the standard sales contract.

• The 90-Day Limit: TREC forms are strictly for 90 days or less. If your builder is delayed beyond three months, you must transition to a standard "Residential Lease," which has different legal implications and may affect the buyer's "owner-occupant" mortgage terms.

• The Daily Rate (Per Diem): Rent is calculated daily. If the buyer’s new monthly payment is $3,000, a fair daily rate is roughly $100/day. In competitive DFW markets, some buyers offer a "Free Leaseback" for 1-2 weeks as an incentive to win the deal.

• The Security Deposit: Always include a deposit (typically held by the Title Company or the Buyer) to cover any potential damages that occur during the move-out phase.

2. Protecting Your Equity and Possessions

Moving your status from "Owner" to "Tenant" changes your legal and insurance protections.

• Insurance Pivot: Your current homeowner's policy will likely end on the day of closing. You must obtain a Renter’s Policy (HO-4) to cover your personal belongings during the leaseback. Meanwhile, the buyer must switch to a Landlord Policy for that period.

• Maintenance Responsibilities: Under the 2026 TREC form, the seller (tenant) is generally responsible for maintaining the yard and pool, while the buyer (landlord) handles major mechanical failures, unless otherwise negotiated.

• The "Holdover" Penalty: To ensure you leave on time for the buyer, these agreements include a "Holdover" fee—often $200 to $500 per day—if you stay past the agreed-upon termination date.

3. Why Builders Love (and Need) Your Leaseback

In the 2026 DFW market, supply chain shifts can still cause "last-mile" delays in new construction.

• The Contingency Buffer: A 30-day leaseback gives you a safety net if the builder’s "Certificate of Occupancy" is delayed by two weeks.

• The Non-Contingent Advantage: Having your current home already closed and funded (with you living there as a tenant) makes you a "non-contingent" buyer in the builder’s eyes, often unlocking better financing incentives or rate buydowns.

4. Negotiation Strategies for DFW Sellers

• The "Zero-Rent" Incentive: If your home is in a high-demand area like Frisco or Southlake, ask for a 30-day free leaseback as part of the offer. Buyers are often willing to "eat" the first month's mortgage to secure a great home.

• Utilities: Keep all utilities in your name until the day you physically move out. This prevents the "utility transfer" headache for both parties.

• The Final Walkthrough: The buyer will perform a walkthrough before closing and a final inspection when you move out. Ensure the home’s condition is documented at the moment of closing to avoid disputes later.

Conclusion

For DFW homeowners, the rent-back agreement is the ultimate "peace of mind" tool for 2026. It eliminates the trauma of a double-move, protects your new build down payment by closing your sale early, and gives you the flexibility to wait for your builder’s perfection. By using the updated TREC 15-7 form and coordinating with your insurance agent, you can turn a complex transition into a seamless "one-stop" move.

Key Takeaways

• 90-Day Max: Temporary leases in Texas cannot exceed three months using TREC forms.

• Check Insurance: You need a renter’s policy; the buyer needs a landlord policy during the leaseback.

• Negotiate the Rate: Rent is often based on the buyer's PITI (mortgage costs) but can be free in a seller's market.

• 2026 Update: Flood notices are no longer required for these short-term temporary leases.

• The Holdover Clause: Be aware of high daily penalties if you stay past your move-out date.