Seller Leaseback in Texas: What Dallas Sellers and Buyers Need to Know

How does a seller leaseback work in Texas?

A seller leaseback lets you stay in your home after closing by signing TREC Form 15-7 (Seller's Temporary Residential Lease), which was updated and became mandatory on January 5, 2026. You sell the house, the buyer takes title, and you rent it back from them for up to 90 days at an agreed daily rate. Rent is typically calculated as the buyer's monthly PITI (principal, interest, taxes, and insurance) divided by 30, paid in full at closing. The arrangement is common in DFW when move-up sellers need time to close on their next home without making two moves.

By Paul Blair | July 13, 2026

You closed. The wire hit. Your equity is in the bank.

And you're still sleeping in the house.

That's a seller leaseback, and it's one of the most common arrangements in DFW real estate right now. If you're a move-up seller trying to avoid two moves, or a buyer negotiating with a seller who needs some runway, this is the deal structure you need to understand before it shows up in your contract.

Here's how it works, what it costs, and what can go wrong on both sides.

The basic setup

A seller leaseback means you sell your home, the buyer takes title at closing, and you remain in the property as a tenant for an agreed period. You're no longer the owner. You're a renter paying daily rent to the new owner.

In Texas, this arrangement is formalized using TREC Form 15-7, the Seller's Temporary Residential Lease. The form was updated and became mandatory on January 5, 2026, replacing the prior version. One notable change: the new form removes the requirement for the landlord to deliver a flood plain notice to the tenant, because short-term and temporary leases are now exempt from that obligation under a Texas law that took effect September 1, 2025.

The maximum lease term under TREC Form 15-7 is 90 days. Anything longer requires a standard Texas residential lease under Property Code Chapter 92, which puts both parties in full landlord-tenant territory.

In practice, most DFW leasebacks run 15 to 45 days. Just enough time for the seller to close on their next home and move once instead of twice.

Why sellers use it

The timing problem is real. If you're selling before you buy, your closing dates rarely line up perfectly. You've accepted an offer, but your replacement home doesn't close for another three weeks. You could make two moves and live somewhere in between, or you could negotiate a leaseback and move directly from your old home to the new one.

The move-up math works well in the 2026 DFW market. With more inventory available and days on market running longer than in recent years, sellers have more negotiating room than they did in 2022. Asking for a leaseback as part of an offer is a reasonable request that many buyers will accept, especially when the home is priced well and the sellers are otherwise easy to work with.

The other benefit is your offer position on the next home. Once you've closed on your current home, you're a non-contingent buyer. That's a significantly stronger position than making a contingent offer that depends on selling your existing house first. For more on how that decision plays out, Sell First or Buy First in Dallas? What Move-Up Buyers Need to Know in 2026 walks through the options in detail.

How the Rent Amount Gets Calculated

The most common formula is the buyer's daily PITI: their monthly principal, interest, taxes, and insurance divided by 30.

The idea is to cover the buyer's carrying cost for each day you're occupying the property. If the buyer's all-in monthly payment is $3,000, the daily rate is $100. For a 30-day leaseback, you'd owe $3,000 in rent.

The rent is paid in full at closing, not monthly. It comes off your net proceeds. If you're doing a 30-day leaseback at $100 per day, your closing statement will show a $3,000 debit on your side. The security deposit, typically equal to one month's equivalent rent, is also collected at closing. That means $6,000 comes out of your proceeds up front, with the deposit returned when you hand over the keys.

The rate is negotiable. Some buyers charge a premium above PITI. Some accept less. In rare cases, if both parties agree, the rate can be set at zero, since the consideration for the sale can serve as consideration for the lease. That's the exception, not the rule.

How it flows through closing

On the settlement statement, the leaseback plays out as two line items: a debit on the seller's side for the prepaid rent, and a credit on the buyer's side for the same amount. The security deposit appears separately.

Your title company handles all of it. The rent sits in their account at funding and is released to the buyer at the end of the lease term. The deposit stays with the title company until you hand over the keys, at which point the buyer reviews the property and either returns it or documents any deductions. For a full picture of what else happens at the table, see Closing Day in Texas: What Dallas Buyers and Sellers Need to Know.

What the Updated TREC Form 15-7 Covers (and What It Doesn't)

The form spells out the lease term, the daily rate, the security deposit, maintenance responsibilities, and what happens if you don't vacate on time.

On maintenance: the seller-as-tenant is responsible for all repairs and upkeep during the leaseback. That includes the yard, trees, shrubs, and any damage caused by the tenant's household. If you scratch the hardwood floors moving your furniture out, that's on you.

On holdover penalties: if you're still in the property after the lease term ends, you're a tenant at sufferance. The form specifies a daily penalty, typically 1.5 to 2 times the agreed daily rate. That provision gives the new owner real leverage if you overstay, and it's not negotiable once you're past the deadline.

What the TREC form does not control is lender restrictions. This is the part that catches sellers and buyers off guard.

Some conventional lenders limit leasebacks to 60 days or less. FHA and VA loans may be stricter. The buyer's loan officer, not the real estate agent, controls this constraint. Before you negotiate a 90-day leaseback into your contract, confirm with the buyer's lender that their loan program allows it. Discovering this limit after going under contract creates a last-minute problem for everyone involved.

Protecting Yourself, Whether You're the Seller or the Buyer

For sellers:

Negotiate the leaseback during the offer stage, not after. Don't wait until you're a week from closing to ask. Build it into the initial contract terms so the buyer knows the full picture before they commit.

Get renter's insurance the day you close. Your personal property is no longer covered by your homeowner's policy after the sale. A renter's policy runs $15 to $30 per month and covers your belongings and personal liability if something goes wrong during the leaseback period.

Make sure the number of days you're requesting is realistic based on your actual closing timeline on the next property. Asking for 45 days when you only need 20 creates unnecessary friction. Ask for what you actually need.

For buyers:

The security deposit is your protection. Make sure it's substantial enough to cover cleaning and minor repairs if the seller leaves the property in less-than-ideal condition. Document the property's condition before you fund. Photographs, video, a walkthrough with your agent.

Notify your homeowner's insurer about the leaseback arrangement. Your policy activates the moment you take title, but the insurer should know a tenant is in the home so coverage applies correctly.

If the seller doesn't move out on time, your recourse starts with the holdover penalty in the TREC form and escalates to the courts if necessary. That's a rare scenario, but it's worth understanding before you agree to the arrangement.

The DFW move-up strategy in 2026

Here's how most DFW move-up sellers put this together. You list your home, accept an offer, and negotiate a 30 to 45 day leaseback as part of the deal. That gives you a firm closing date for your current home and a defined window. You use that date as your "equity is available" marker when you shop for your next home. You write a non-contingent offer on the replacement property with a closing date that lands inside your leaseback window.

You close on both homes. You hand over the keys on the current house on day 30 or 45, and the moving truck goes directly from the old house to the new one.

This is cleaner than a contingent offer, which requires the seller of your next home to trust that your current sale will actually close. A non-contingent buyer is in a measurably stronger negotiating position, and the leaseback is what makes it possible.

In the current DFW market, where sellers have more room to negotiate than they did during the past few years, asking for a reasonable leaseback is often accepted without much pushback. If you're priced well and working with a motivated buyer, 30 days is a small ask that solves a real logistics problem.

When a leaseback is not the right move

Not every buyer will agree to one. If you're in a multiple-offer situation or the buyer has a hard move-in date, a leaseback request might cost you the deal. Know your market. If your listing has been sitting, you have more leverage. If you're fielding offers in the first week, the dynamic is different.

Also verify whether the loan on your next home has occupancy requirements. If you're buying with a loan that requires you to occupy within 60 days of closing, make sure your leaseback timeline doesn't create a conflict.

Frequently Asked Questions

How long can a seller leaseback last in Texas?

Under TREC Form 15-7, a seller leaseback can run for a maximum of 90 days. In practice, most DFW leasebacks run 15 to 45 days. Some conventional lenders limit leasebacks to 60 days or less, so the buyer's loan type ultimately controls the ceiling. If you need more than 90 days, a standard Texas residential lease under Property Code Chapter 92 is required, which carries more formal landlord-tenant obligations.

Who pays for repairs during a seller leaseback?

The seller-as-tenant is responsible for all repairs and maintenance during the leaseback period, including the yard, trees, shrubs, and any damage caused by the tenant's household. This is spelled out in TREC Form 15-7. The buyer (now the landlord) is not responsible for upkeep during the leaseback term unless both parties negotiate otherwise.

How is the daily rent calculated in a Texas leaseback?

The most common formula is the buyer's monthly PITI (principal, interest, taxes, and insurance) divided by 30 to get a daily rate. That covers the buyer's daily carrying cost while the seller remains in the property. The total rent is prepaid in full at closing and comes off the seller's net proceeds. The rate is negotiable and can be set higher, lower, or in some cases at zero if both parties agree.

Can a buyer refuse to agree to a seller leaseback?

Yes. Agreeing to a leaseback is entirely the buyer's choice, and some buyers will decline, particularly if they have a specific move-in date, a loan with occupancy timing requirements, or competing offers that don't require one. Sellers negotiating in a buyer's market generally have more success requesting leasebacks than sellers in a competitive multiple-offer environment.

What happens if the seller won't move out at the end of the leaseback?

TREC Form 15-7 converts the seller to a tenant at sufferance after the lease term ends, with a daily holdover penalty, typically 1.5 to 2 times the agreed daily rate. If the seller still won't vacate, the buyer can pursue eviction through the courts. Security deposits held at the title company can be applied toward damages, but formal eviction is required to remove a holdover tenant who refuses to leave voluntarily.

Seller leasebacks are one of those tools that most Dallas sellers don't think about until they're in the middle of a deal and the timing problem becomes real. The good news is that Texas has a clean, well-defined process for it, and the updated TREC Form 15-7 makes the mechanics straightforward for both sides.

If you're thinking through your move-up timing, the leaseback conversation starts when you start thinking about listing, not after you're already under contract. The right amount of runway depends on your replacement home's timeline, your buyer's lender, and how much of your net proceeds you're comfortable putting toward prepaid rent.

If you'd like to walk through the numbers for your specific situation, start with a current value estimate at greysq.com/home-value, or reach out directly at greysq.com/contact.

About Paul Blair

Paul Blair is the founder and broker of Grey Square, a virtual real estate brokerage representing buyers and sellers across Dallas and Los Angeles. With 22 years in the business and more than $200 million in closed transactions, Paul works the full range of the market, from luxury homes in the Park Cities and Preston Hollow to estates in the Hollywood Hills and across the Westside. Connect with Paul and the Grey Square team at greysq.com. TX TREC #9011505 · CA DRE #01792671.