What is a Seller Lease Back?

Sometimes a seller needs a few extra days in the home after closing — maybe their next place isn’t quite ready. That’s where a seller lease-back comes in: a contract provision that lets the seller stay for a short, agreed period after the sale closes.

How a seller lease-back works in Texas

In Texas, a short post-closing stay is handled with the Seller’s Temporary Residential Lease (TREC form 15-7, the version mandatory since January 5, 2026) — used when the seller will remain in the home for 90 days or less after closing. The buyer (now the owner) and the seller agree on the length and a daily rate, which is often tied to the new owner’s daily carrying cost, though it can be set at no charge if that’s what’s negotiated.

The money mechanics are simpler than most people expect. The full rent for the whole term is paid once, at funding, and the day of closing itself doesn’t count as a rental day. Any security deposit changes hands at funding too, and after the seller moves out and provides a forwarding address in writing, the new owner has 30 days to return the unused portion with an itemized list of any deductions. If the seller leaves early by choice, the form doesn’t provide a rent refund — worth knowing when you pick the term.

Why it helps both sides

• For sellers: it removes the pressure of moving out before closing and avoids the risk of having to move twice if a sale were to fall through.
• For buyers: offering a lease-back can make your offer more attractive in a competitive situation — sometimes more than a higher price would.

A few things to watch

Stays longer than 90 days use a different lease and bring landlord-tenant rules into play, so they’re handled differently. A few more details deserve attention before anyone signs:

• Insurance changes for both sides. The form warns in capital letters that the seller staying on as a tenant may change insurance coverage. The buyer’s new homeowner policy assumes the buyer lives there, and the seller’s old policy ends with the sale — so the buyer should tell their insurer about the lease-back, and the seller should ask about coverage for their belongings during the stay.
• The seller keeps the upkeep. During the lease-back, the seller-turned-tenant bears the expense of maintaining the home, yard included, and must repair damage they cause.
• A holdover rate with teeth. The form sets a separate, per-day damages rate if the seller stays past the termination date. Set it high enough to matter.
• Utilities and the walkthrough. Spell out who pays which utilities, and plan a final walkthrough for when the seller moves out — the home must come back in the condition the contract required, normal wear and tear aside.

One change worth noting on the January 2026 form: the requirement for the buyer-landlord to deliver a floodplain and flood notice was removed, since a 2025 law change exempts temporary and short-term leases from that landlord notice. Flood history disclosure still happens where it belongs, on the seller’s disclosure notice, before the contract is ever signed.

I’ll make sure those details are covered so there are no surprises on either side. You’ll find the forms at the Texas Real Estate Commission, and more answers on the seller FAQ. A lease-back also pairs naturally with the other timeline levers in your contract — the option period on the buyer’s side, and the closing date itself.

Last updated: August 2026 · Reflects TREC form 15-7 (mandatory January 5, 2026). Not legal advice — confirm specifics with your agent or an attorney.

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