Real Estate
When it comes to renting residential properties in Texas, landlords and tenants enjoy a significant degree of freedom to contract. This means they can use whichever lease form they prefer, as long as it complies with the law. However, the most common residential lease used for single-family rentals in the Lone Star State is the Texas Association of Realtors Residential (TAR) lease form. In this blog post, we’ll provide you with a framework for understanding and using this widely recognized lease agreement.
The Texas Association of Realtors Residential lease form, commonly referred to as the TAR lease, is a comprehensive agreement designed to establish the terms and conditions of a residential rental arrangement. It’s important to note that this lease form is promulgated by the Texas Association of Realtors and is copyrighted for the exclusive use of Realtors who are members of TAR. This copyright protection means that the lease should not be altered or reproduced without proper authorization.
The TAR lease is quite extensive, spanning approximately 14 pages. Typically, it is combined with several common addenda, such as an Animal Agreement or Bed Bug Addendum, to address specific issues that may arise during a tenancy. These addenda are also designed to be in compliance with state and federal laws and regulations.
One notable aspect of the TAR lease is that it is drafted by lawyers at TAR with the intention of being fairly unbiased for both tenants and landlords. This balance is a key reason for its widespread use and acceptance in the Texas rental market. Unlike many other lease forms, the TAR lease aims to provide clarity and protection for both parties involved in the rental agreement.
It’s important to distinguish between the Texas Association of Realtors and the Texas Real Estate Commission (TREC). TAR is a private trade association for real estate professionals, while TREC is a government agency responsible for regulating real estate agents. TREC does promulgate various forms for use by the general public, but it does not provide a standard residential lease form. As a result, the TAR lease has become the de facto standard in Texas for residential rentals.
One crucial point to highlight in the TAR lease is Paragraph 33, Section G. This section stipulates that the use of the lease without the involvement of a Realtor is voidable by the tenant. In other words, if a landlord uses the TAR lease without the assistance of a Realtor, the tenant has the option to void the lease. This underscores the importance of either working with a Realtor or seeking legal guidance when using this lease form.
There are several advantages to using the TAR lease in your Texas residential rental agreements:
While the TAR lease offers many advantages, it’s crucial to caution landlords against striking the copyright clauses and using the lease anyway. Copyright infringement can result in legal consequences, so it’s always best to use the lease as intended, with the appropriate authorization.
For landlords who may be unfamiliar with the TAR lease or those who want to ensure compliance with all relevant laws, enlisting the help of a professional property manager who is also a Realtor can be a wise decision. Property managers are well-versed in the nuances of the TAR lease and can effectively negotiate lease terms on your behalf.
Alternatively, landlords who choose not to use a property manager may consider hiring a lawyer to draft a residential lease tailored to their specific needs and preferences. This can be especially beneficial for landlords with unique rental situations or those who want to create a highly customized lease agreement.
In conclusion, the Texas Association of Realtors Residential lease form is the most common residential lease used in Texas for single-family rentals. Its widespread recognition, fairness, and regular updates make it a preferred choice for landlords and tenants alike. However, it’s crucial to respect its copyright and consider seeking professional assistance to ensure a smooth and legally compliant leasing process.
