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Texas Rent-to-Own (Lease Option) Agreement

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Updated on February 27th, 2022

Texas rent-to-own agreement is a lease containing purchase conditions that enable the tenant to buy the property before the contract expires. Like any other lease, a rent-to-own agreement defines the terms and conditions of the tenancy arrangement. It states the lease duration, security deposit amount, monthly rent, and the tenant’s property expenses.

What differentiates a rent-to-own contract is the inclusion of a “lease option.” With this addition, the tenant is afforded buying rights to the property; however, the tenant may be required to pay a deposit to secure their purchasing rights. For this reason, a rent-to-own agreement is recommended for prospective homeowners who are committed to a purchase but require additional time to prepare their finances.

Rental Laws Title 8, Ch. 92 (Residential Tenancies)

Purchase Agreement Laws Title 2, Ch. 5 (Conveyances)


Disclosures (5)

  1. Lead-Based Paint
  2. Ownership & Management
  3. Right to Interrupt Utilities
  4. Special Conditions to Cancel
  5. Texas Parking Rules Addendum

1) Lead-Based Paint Disclosure

This disclosure is used for buildings constructed before 1978 as they may contain harmful lead paint.

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2) Ownership and Management

Texas landlords are required to keep tenants informed of the property owner and manager’s names and addresses.

3) Right to Interrupt Utilities

Tenants of a building with submetered or allocated/prorated non-submetered electricity may face a utility service interruption if they fail to pay their electricity bills, provided the landlord has notified the tenant in advance via written notice and the lease agreement states the landlords’ right to interrupt utilities.

4) Special Conditions to Cancel Agreement

Lease agreements must contain the following provision: “Tenants may have special statutory rights to terminate the lease early in certain situations involving family violence or a military deployment or transfer.”

5) Texas Parking Rules Addendum

This addendum is used to inform tenants of a multiunit complex’s vehicle parking and towing policies.


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