The Texas Sale-Leaseback Guide: Two Paths, One Smart Strategy

February 23, 2026

Texas real estate never sits still. Mortgage rates remain elevated, inventory is tight in most major metros, and sellers still hold an advantage, but the clock is always ticking. The challenge isn’t just selling your home; it’s what comes next.

A sale-leaseback flips the script: you sell your property, pocket the equity, and stay on as a renter while you figure out your next move. The Texas Real Estate Commission (TREC) updated its Seller’s Temporary Residential Lease (Form 15-7, effective January 5, 2026) to make this process smoother and clearer than ever. Not all sale-leasebacks are the same. Below we cover two very different seller scenarios: the seller who’s relocating and needs a short bridge window, and the seller seeking a long-term leaseback who wants to stay in their home indefinitely.

Perspective 1: The Relocating Seller, Short-Term Bridge Strategy

You're Moving, But You're Not Ready Yet

You've accepted an offer. Congratulations. Now the panic sets in: where do you go while your new construction home is still being built? Or while you wait for the right rental in your destination city? TREC's Form 15-7 was designed precisely for this, sell your home, close the deal, and remain as a tenant for up to 90 days without the chaos of a double-move.

Key 2026 Rules at a Glance

Under the updated TREC Form 15-7 (effective January 5, 2026):

	Rule	What It Means for You
⏱	90-Day Maximum	You can stay up to 90 days after closing. Going beyond requires a standard lease — which changes your buyer's financing terms and your legal standing entirely.
💰	Rent Based on PITI	Daily rent is calculated from the buyer's Principal, Interest, Taxes & Insurance (PITI). Both rent and a one-month security deposit are settled at closing.
🚨	Holdover Penalties	Staying past the lease end triggers daily fees of $200–$500. Plan your builder timeline carefully — construction delays are common.
📋	No Flood Notice Required	Per Texas Senate Bill 2349, short-term leasebacks under 90 days no longer require the floodplain notice — less paperwork at closing.
🔓	Right to Terminate Early	Under Texas Finance Code § 342.009, you can exit early by returning the home in good condition and paying rent only through your actual move-out date.
🔑	Buyer Becomes Landlord	Standard Texas landlord-tenant law applies from closing. Senate Bill 38 (2026) streamlined holdover eviction procedures — know your rights before signing.

Your Relocation Sale-Leaseback Checklist

Agree on the rent with your buyer (based on their PITI)
Set a firm lease period how many days do you actually need?
Confirm the security deposit amount (typically one month’s rent)
Ensure rent and deposit are reflected on your Settlement Statement at closing
Sign TREC Form 15-7 at closing, do not skip this
Swap your homeowner’s policy for a renter’s policy (HO-4 coverage)
Maintain the property: lawn, utilities, cleanliness
Book your movers well before the lease end date
Do a final walkthrough and document condition before handing over keys

✅ Why It Works for Relocating Sellers	⚠️ Risks to Watch For
+Eliminates the double-move nightmare entirely	−Builder delays can push you past the 90-day limit
+Unlocks full home equity immediately at closing	−Holdover fees of $200–$500/day if your timeline slips
+Bridges the gap to new construction or a new city rental	−Insurance gaps if buyer doesn't switch policy at closing
+Avoids a vacant-property discount on your sale price	−Deposit disputes — document everything with dated photos
+Typically allows an as-is sale — no repairs or staging	−Utility and maintenance obligations remain yours during the lease

^{Pro Tip for Relocators:}^{If your builder gives you a move-in date, add a 2–3 week buffer to your leaseback period. Construction timelines slip and $300/day in holdover fees adds up fast.}

How Sell2Rent Helps Relocating Sellers

Sell2Rent specializes in making short-term leasebacks seamless for Texas homeowners. We handle the paperwork, coordinate closing, match you with qualified buyers who understand the arrangement, and give you the breathing room to relocate on your schedule not someone else’s. For a relocating seller, this removes the single biggest source of post-sale stress.

Perspective 2: The Long-Term Leaseback Seller, Equity Unlock Strategy

You Want to Stay, Indefinitely

Not every seller wants to leave. Some homeowners, particularly retirees, empty-nesters, or those facing financial transitions, want to unlock the equity in their home while staying exactly where they are. This is the long-term leaseback, and it operates very differently from TREC’s short-term Form 15-7. If you need to remain in the property for more than 90 days, Texas law requires a standard residential lease, which moves you out of TREC’s temporary lease framework and into full landlord-tenant territory governed by the Texas Property Code Chapter 92.

^‍^{Key Distinction:}^{TREC Form 15-7 only covers up to 90 days. For long-term leasebacks, you and your buyer must enter a standard}^{Texas Residential Lease}^{governed by}^{Texas Property Code Chapter 92}^{. Your rights and obligations, shift significantly.}

What a Long-Term Leaseback Looks Like

In a long-term sale-leaseback, you negotiate with your buyer (often an investor or institutional buyer) to sell the home at market value and sign a multi-year lease. Common structures include:

Lease terms of 1–5 years, often with renewal options
Rent set at or near market rate for the area
Seller retains occupancy, same neighborhood, same school district
Buyer/investor collects rent as an income-generating asset
Seller uses proceeds to pay off debt, invest, or fund retirement

The Financial Case for Long-Term Leasebacks

For many Texas homeowners, the majority of their net worth is locked inside their home. A long-term leaseback converts that illiquid equity into working capital — without forcing you to move a single box.

	Financial Benefit	How It Works
💳	Eliminate High-Interest Debt	Use sale proceeds to pay off credit cards, HELOCs, or personal loans — often saving thousands in annual interest charges immediately.
🏦	Fund Retirement Without a Reverse Mortgage	Access your equity on better terms than a HUD reverse mortgage — no loan origination, no accruing interest, no repayment obligation.
💰	Capital Gains Tax Exclusion	If you've lived in your home 2+ of the last 5 years, exclude up to $250k (single) or $500k (married filing jointly) per IRS Publication 523.
📈	Invest Proceeds for Growth	Redeploy your home equity into diversified investments — stocks, bonds, REITs — that may outperform local real estate appreciation over time.
🏡	Stay in Your Community	Same neighborhood, same school district, same social network — zero disruption to your daily life, relationships, or routines.
🔧	Shift Major Maintenance Costs	Depending on lease terms, costly structural repairs — roof, HVAC, plumbing, foundation — become the new owner's responsibility, not yours.

Benefits & Risks

✅ Why Long-Term Leasebacks Work	⚠️ Real Risks to Understand
+Immediate liquidity from otherwise illiquid home equity	−You lose ownership and future appreciation upside
+No moving costs, storage fees, or life disruption	−Rent can increase at each lease renewal period
+Can eliminate monthly mortgage payments entirely	−Investor can sell — occupancy rights depend on lease terms
+Flexibility to invest proceeds for long-term growth	−Eviction risk if rent payments are ever missed
+Stay close to family, community, and familiar surroundings	−Not regulated by TREC Form 15-7 — independent legal review is essential

Your Legal Protections Under Texas Law

Because long-term leasebacks fall under standard residential tenancy law, your rights are governed by Texas Property Code Chapter 92.

Legal Protections Table

Status	Protection	What It Covers
Tenant Right	Right to Habitable Premises	Landlord must maintain structural integrity, working heating, functioning plumbing, and essential utilities throughout your tenancy.
Tenant Right	Security Deposit Return	Deposit must be returned within 30 days of move-out with an itemized written statement for any deductions made.
Tenant Right	Right to Privacy	Landlord must provide reasonable advance notice (typically 24 hours in Texas) before entering the property except in emergencies.
Tenant Right	Retaliation Protections	Landlord cannot raise rent or terminate your lease in retaliation for exercising your legal rights as a tenant under Texas law.
2026 Update	Streamlined Holdover Process	Under SB 38 (2026), holdover eviction procedures are faster — understand your exit rights thoroughly before signing any long-term lease.
2026 Update	Flood Notice Waiver	Per SB 2349, flood notices are waived for leases under 90 days only — standard disclosures still apply to long-term arrangements.

Sell2Rent: Built for the Long-Term Leaseback

Sell2Rent stands out in the Texas market because We understand leasebacks, not just the 90-day variety. We connect homeowners with vetted investors, structure lease terms that protect sellers' occupancy rights, and have a track record of keeping sellers in their homes with transparent, fair agreements, whether that's 6 months or several years. For homeowners using a leaseback as a retirement or financial planning strategy, Sell2Rent is one of the few platforms built specifically for this use case.