Lease forms get an overhaul

What is different about the revised

residential-lease form?

by Ron Walker   IThe TAR residential lease forms (Nos. 2001-2010) were modified last October. This article highlights the more significant changes in the residential lease form (No. 2001). The related addenda were also modified and, for the most part, operate the same as the prior versions, but are not discussed in this article. This article does not identify the rather numerous grammatical and formatting changes that were made to make the form easier to read and use.

The font size of the forms was increased, which is the standard that TAR follows in all of its forms. The number of pages therefore increased but the overall length of the form remained about the same.

The task force that revised the form added a table of contents, which now appears as page 1. The “notice” box that appeared at the top of the old form was removed. The notices in that box were moved to other parts of the form.

Paragraph 3B, concerning a delay of occupancy, was moved from old paragraph 10. The time period under that paragraph was extended from three to five days.
Paragraph 4 contains a check box for the parties to elect if the notice of termination must be at least 30 days in advance or some other negotiated time period.

In paragraph 5A, the third sentence was added to clarify that the landlord must actually receive the rent payment by the first day of each month for it to be considered timely paid.

Paragraph 5C now contains a notice to the tenant to place the property address and tenant’s name on all payments.

A checkbox was added in paragraph 5D(4) to determine if the landlord requires one check if multiple tenants occupy the property.

Paragraph 6, concerning late charges, was rewritten to provide: that rent payments must be received by the landlord by the due date (as opposed to being sent by the due date); that the mailbox is not the agent for the landlord for the payment of rent; and that rent payments must be received by a specified time on the due date. Additionally, paragraph 6 now contains a choice for the initial late charges to be a certain dollar amount or a percentage of the monthly rent.

Paragraph 9, concerning pets, was rewritten to clearly itemize a landlord’s alternative remedies for a pet violation.

Paragraph 10, concerning security deposits, now notifies the parties where one may view the Property Code. Paragraph 10D, concerning deductions to the security deposit, was reworded to address questions that occasionally arise related to deductions (for example, light bulb replacement). Paragraph 10D(1)(h) was added to permit a deduction for the landlord’s cost to access the property if the tenant makes it inaccessible. Paragraph 10D(1)(o) was added to permit a deduction for mailing expenses for lease violation notices.

In Paragraph 11A, the term “Internet connections” was added to the list of items in the parenthetical that gives examples of utilities or connections. Paragraph 11 also now contains a notice to the tenant that the tenant should determine if all necessary utilities are available.

Paragraph 14, concerning access by the landlord, was clarified and now provides that the landlord will first attempt to make contact with the tenant before accessing the property. The landlord may still access the property without notice for certain purposes such as emergency repairs or leaving written notices.

Paragraph 14C, concerning trip charges, is new. It provides that the landlord may charge the tenant a specified amount if the tenant makes the property inaccessible after the landlord has made arrangements to access the property. One should note that paragraph 18D controls in situations when a repairperson and not the landlord is not able to access the property. Trip charges under paragraph 18D apply only if the repairperson charges the landlord a trip charge.

Paragraph 15A, concerning move-in condition, now contains a few blank lines in the event the parties agree that the landlord will make certain repairs or alterations. In paragraph 15B, the 48-hour requirement to deliver the inventory-and-condition form was replaced with a blank line.

Paragraph 16 was modified so that key definitions that are applicable upon move-out were moved under paragraph 16 (normal wear and tear, surrender, and abandonment). The definitions of surrender and abandonment were modified to more specifically define events that must occur in order to establish a surrender or an abandonment. Paragraph 16C, concerning the tenant leaving personal property after move-out, was modified by removing the forfeiture provisions and providing for three specific ways that the landlord may dispose of the personal property.

Paragraph 17A, concerning the tenant’s general maintenance responsibilities, was slightly modified. For example, paragraph 17A(4) is more specific about light bulb replacement and battery replacement in carbon monoxide detectors. Paragraph 17A(5) now specifically addresses chemicals in a water softener. Paragraph 17A(10) now specifically addresses standing water. Paragraph 17A(11) now requires the tenant to know the location and operation of the cut-off valves and breakers.

Paragraph 17B(3) now contains lines for the parties to specify appropriate watering times for the yard. It also contains standard choices for the parties to negotiate who will maintain the yard (landlord, tenant, or a contractor).

Paragraph 17C has been added and references the new Pool/Spa Maintenance Addendum, onto which all maintenance issues related to a pool or spa were moved.

Paragraph 17E is new and addresses the landlord’s remedies if the tenant fails to maintain the property in accordance with paragraph 17.

The changes in paragraph 18, concerning repairs, are primarily grammatical and formatting changes, which were designed primarily to eliminate confusion as to which party is obligated to pay which repair.

Paragraph 18C(1)(d) now specifically provides that the landlord will pay the entire cost of air-conditioning and heat repairs, water-heater repairs, and water-penetration repairs.

Paragraph 28 is a new paragraph entitled “Early Termination.” The military clause was moved under paragraph 28. The military clause contains grammatical changes to clarify that the tenant must receive “PCS” orders to qualify under paragraph 28A, and that the paragraph does not apply to PCS orders changing bases that are located in the same county.

Paragraph 28B, concerning assignment and subletting, now contains specific provisions that permit the tenant to attempt to find a replacement tenant and set forth any compensation due the landlord for permitting a subtenant or an assignee to occupy the property. One should note that paragraph 28B does not apply to a tenant who breaches the lease. It allows the tenant to seek a replacement tenant without breaching the lease. Additionally, it is consistent with a landlord’s obligations to mitigate any damages caused by a breaching tenant.

Addenda that will be attached to the lease are now all referenced specifically in the table of contents on page 1.

Paragraph 33G is new. It provides that the lease is voidable by the tenant if it was not negotiated by a Realtor® or an attorney.

Paragraphs 34A, 34C, 34D, and 34G were moved from different parts of the prior form. Paragraph 34B, concerning availability of utilities and other services, is new. Paragraph 34E, concerning a contact in the event of a death, is new. Paragraph 34F was moved from another part of the form, and a checkbox was added for the tenant to disclose if the tenant intends to obtain personal property insurance.

Finally, the format for the landlord’s signature was modified to better accommodate property managers who have written authority to bind the landlord to the lease.

Ron Walker is director of legal affairs for TAR.

Illustration©Photodisc

home   current issue    top 10    resources 

discussions   contact us   search

Buyers & sellers, visit www.texasrealestate.com.
REALTORS®, visit www.texasrealtors.com.