texas lease agreement laws

In addition, unless otherwise provided in the lease contract: (1) if the default substantially impairs the value of the lease contract to the lessor, the lessor may exercise the rights and pursue the remedies provided by Subsection (a) or (b); or. (a) Except in a finance lease, a warranty that the goods will be merchantable is implied in a lease contract if the lessor is a merchant with respect to goods of that kind. PRIORITY OF CERTAIN LIENS ARISING BY OPERATION OF LAW. (3) the lessee has no further obligations with regard to goods rightfully rejected. (4) the lessee has a right to remove the goods as against the encumbrancer or owner. (a) Under an installment lease contract a lessee may reject any delivery that is nonconforming if the nonconformity substantially impairs the value of that delivery and cannot be cured or the nonconformity is a defect in the required documents; but if the nonconformity does not fall within Subsection (b) and the lessor or the supplier gives adequate assurance of its cure, the lessee must accept the delivery. (a) Incidental damages resulting from a lessor's default include expenses reasonably incurred in inspection, receipt, transportation, and care and custody of goods rightfully rejected or goods the acceptance of which is justifiably revoked, any commercially reasonable charges, expenses or commissions in connection with effecting cover, and any other reasonable expense incident to the default. Sec. Sec. 2A.109. (3) the delivery was procured through fraud punishable as larcenous under the criminal law. 2A.519. (c) Before making a finding of unconscionability under Subsection (a) or (b), the court, on its own motion or that of a party, shall afford the parties a reasonable opportunity to present evidence as to the setting, purpose, and effect of the lease contract or clause thereof or of the conduct. (2) Any description of the goods which is made part of the basis of the bargain creates an express warranty that the goods will conform to the description. 570, Sec. Sec. (d) Between merchants, the reasonableness of grounds for insecurity and the adequacy of any assurance offered must be determined according to commercial standards. (d) A lease contract that does not satisfy the requirements of Subsection (a), but which is valid in other respects, is enforceable: (1) if the goods are to be specially manufactured or obtained for the lessee and are not suitable for lease or sale to others in the ordinary course of the lessor's business, and the lessor, before notice of repudiation is received and under circumstances that reasonably indicate that the goods are for the lessee, has made either a substantial beginning of their manufacture or commitments for their procurement; (2) if the party against whom enforcement is sought admits in that party's pleading, testimony or otherwise in court that a lease contract was made, but the lease contract is not enforceable under this provision beyond the quantity of goods admitted; (3) with respect to goods that have been received and accepted by the lessee; or. Eviction can cost $1,000 to $10,000 in legal fees, and . (a) The benefit of a supplier's promises to the lessor under the supply contract and of all warranties, whether express or implied, including those of any third party provided in connection with or as part of the supply contract, extends to the lessee to the extent of the lessee's leasehold interest under a finance lease related to the supply contract, but is subject to the terms of the warranty and of the supply contract and all defenses or claims arising therefrom. 1, eff. (2) "Cancellation" occurs when either party puts an end to the lease contract for default by the other party. (b) If the judicial forum chosen by the parties to a consumer lease is a forum located in a jurisdiction other than the jurisdiction in which the lessee in fact signed the lease agreement, resides at the commencement of the action, or resided at the time the lease contract became enforceable or in which the goods are in fact used by the lessee, the choice is not enforceable. (2) in a proper case, obtain specific performance, replevin, detinue, sequestration, claim and delivery, or the like for the goods (Section 2A.521). LESSEE'S INCIDENTAL AND CONSEQUENTIAL DAMAGES. LESSEE'S REMEDIES. Good faith conduct hereunder is neither acceptance or conversion nor the basis of an action for damages. (b) A buyer in the ordinary course of business or a sublessee in the ordinary course of business from a lessee who is a merchant dealing in goods of that kind to whom the goods were entrusted by the lessor obtains, to the extent of the interest transferred, all of the lessor's and lessee's rights to the goods, and takes free of the existing lease contract. No, but it is nearly impossible to protect your legal rights without a written lease. Sec. Sept. 1, 2003. (a) Except in the case of a finance lease, risk of loss is retained by the lessor and does not pass to the lessee. COVER; SUBSTITUTE GOODS. COMMERCIAL TENANCIES Sec. Added by Acts 1993, 73rd Leg., ch. Sec. FINAL WRITTEN EXPRESSION; PAROL OR EXTRINSIC EVIDENCE. (3) express warranties displace inconsistent implied warranties other than an implied warranty of fitness for a particular purpose. 570, Sec. 2A.210. In addition to any other recovery permitted by this chapter or other law, the lessor may recover from the lessee an amount that will fully compensate the lessor for any loss of or damage to the lessor's residual interest in the goods caused by the default of the lessee. (c) This chapter does not prevent the creation of a lease of fixtures pursuant to real estate law. SUBSEQUENT LEASE OF GOODS BY LESSOR. 2A.103. (a) Except as otherwise provided with respect to damages liquidated in the lease agreement (Section 2A.504) or otherwise determined pursuant to agreement of the parties (Sections 1.302 and 2A.503), if a lessor elects to retain the goods or a lessor elects to dispose of the goods and the disposition is by lease agreement that for any reason does not qualify for treatment under Section 2A.527(b) or is by sale or otherwise, the lessor may recover from the lessee as damages for a default of the type described in Section 2A.523(a) or (c)(1), or, if agreed, for other default of the lessee, (i) accrued and unpaid rent as of the date of default if the lessee has never taken possession of the goods, or, if the lessee has taken possession of the goods, as of the date the lessor repossesses the goods or an earlier date on which the lessee makes a tender of the goods to the lessor, (ii) the present value as of the date determined under clause (i) of the total rent for the then remaining lease term of the original lease agreement minus the present value as of the same date of the market rent at the place where the goods are located computed for the same lease term, and (iii) any incidental damages allowed under Section 2A.530, less expenses saved in consequence of the lessee's default. (d) This section does not alter the law on tolling of the statute of limitations nor does it apply to causes of action that have accrued before this chapter becomes effective. (b) Rejection of goods is ineffective unless it is within a reasonable time after tender or delivery of the goods and the lessee seasonably notifies the lessor. Sec. CASUALTY TO IDENTIFIED GOODS. Sec. Sec. Acts 1983, 68th Leg., p. 3631, ch. Texas Lease Agreement Disclosures (d) Revocation of acceptance must occur within a reasonable time after the lessee discovers or should have discovered the ground for it and before any substantial change in condition of the goods which is not caused by the nonconformity. Added by Acts 1993, 73rd Leg., ch. 570, Sec. (2) in the case of an indemnity against loss or damage, when the person indemnified makes payment thereof. (2) injury to person or property proximately resulting from any breach of warranty. "Leasing" may be for cash or by exchange of other property or on secured or unsecured credit and includes acquiring goods or documents of title under a preexisting lease contract but does not include a transfer in bulk or as security for or in total or partial satisfaction of a money debt. REVOCATION OF ACCEPTANCE OF GOODS. (3) consumer law of this state, both decisional and statutory, including, to the extent that they apply to a lease transaction: (C) Chapters 17, 53, 54, 72, 92, 101, 103, 305, 323, 522, 523, 602, 603, 604, and 2001; (D) Section 65.017, Civil Practice and Remedies Code; (b) In case of conflict between this chapter, other than Sections 2A.105, 2A.304(c) and 2A.305(c), and any statute or law referred to in Subsection (a), the statute or law controls. Sec. Sec. 2A.209. Subject to Subsection (c), to exclude or modify an implied warranty of fitness the exclusion must be by a writing and be conspicuous. "Pursuant to commitment". Sept. 1, 1993. ENFORCEABILITY OF LEASE CONTRACT. Sec. Less Than Month-to-Month: If rent is paid more frequently than on a month-to-month basis, a landlord must provide the tenant with the same amount of notice as one rental period; for example, week-to-week tenants would receive at least seven days' notice. FIRM OFFERS. 2A.307. (c) Consequential damages may be liquidated under Section 2A.504 or otherwise be limited, altered, or excluded unless the limitation, alteration, or exclusion is unconscionable. Added by Acts 1993, 73rd Leg., ch. A lessee with a voidable leasehold interest has power to transfer a good leasehold interest to a good faith buyer for value or a good faith sublessee for value, but only to the extent set forth in the preceding sentence. (a) If the law chosen by the parties to a consumer lease is that of a jurisdiction other than a jurisdiction in which the lessee resides at the time the lease agreement becomes enforceable or within 30 days thereafter or in which the goods are to be used, the choice is not enforceable. Texas Tenant Rights Laws at a Glance. Acts 2007, 80th Leg., R.S., Ch. Except as otherwise provided in this title, each provision of this chapter applies whether the lessor or a third party has title to the goods, and whether the lessor, the lessee, or a third party has possession of the goods, notwithstanding any statute or rule of law that possession or the absence of possession is fraudulent. (c) A writing is not insufficient because it omits or incorrectly states a term agreed upon, but the lease contract is not enforceable under Subsection (a)(2) beyond the lease term and the quantity of goods shown in the writing. 2.20, eff. 2A.504. (2) if the loss is partial or the goods have so deteriorated as to no longer conform to the lease contract, the lessee may nevertheless demand inspection and at the lessee's option either treat the lease contract as avoided or, except in a finance lease that is not a consumer lease, accept the goods with due allowance from the rent payable for the balance of the lease term for the deterioration or the deficiency in quantity but without further right against the lessor. Without removal, the lessor may render unusable any goods employed in trade or business, and may dispose of goods on the lessee's premises (Section 2A.527). (a) In rejecting goods, a lessee's failure to state a particular defect that is ascertainable by reasonable inspection precludes the lessee from relying on the defect to justify rejection or to establish default: (1) if, stated seasonably, the lessor or the supplier could have cured it (Section 2A.513); or. Before signing, the landlord is recommended to verify a prospective tenant's credit report and employment. STATUTE OF LIMITATIONS. (e) A purchaser who purchases in good faith from a lessee pursuant to this section or Section 2A.511 takes the goods free of any rights of the lessor and the supplier even though the lessee fails to comply with one or more of the requirements of this chapter. 2A.206. 1993. Acceptance by the transferee constitutes a promise by the transferee to perform those duties. 2A.208. Sec. Acts 2005, 79th Leg., Ch. 2A.104. (c) Notwithstanding Subsection (b), but subject to Subsection (d): (1) unless the circumstances indicate otherwise, all implied warranties are excluded by expressions like "as is," or "with all faults," or by other language that in common understanding calls the lessee's attention to the exclusion of warranties and makes plain that there is no implied warranty, if in writing and conspicuous; (2) if the lessee before entering into the lease contract has examined the goods or the sample or model as fully as desired or has refused to examine the goods, there is no implied warranty with regard to defects that an examination ought in the circumstances to have revealed; and. The Texas Residential Lease Agreement Template below defines all necessary lease agreement terms. (d) Nothing in this section impairs any insurable interest recognized under any other statute or rule of law. Sec. (b) Subject to the provisions of this chapter on the effect of default on risk of loss (Section 2A.220), if risk of loss is to pass to the lessee and the time of passage is not stated, the following rules apply: (1) If the lease contract requires or authorizes the goods to be shipped by carrier: (A) and it does not require delivery at a particular destination, the risk of loss passes to the lessee when the goods are duly delivered to the carrier; but. (3) the burden is on the lessee to establish any default. 2A.213. (b) Acceptance of a part of any commercial unit is acceptance of that entire unit. 1, eff. LESSOR'S REMEDIES. 2A.528. Unless the context clearly indicates otherwise, the term includes a sublease. (b) If the agreed means or manner of payment fails because of domestic or foreign governmental regulation: (1) the lessor may withhold or stop delivery or cause the supplier to withhold or stop delivery unless the lessee provides a means or manner of payment that is commercially a substantial equivalent; and. 2A.221. Unless the context clearly indicates otherwise, the term includes a sublease contract. Sec. (e) Subsections (c) and (d) apply to any obligation of a lessee to hold the lessor or the supplier harmless against infringement or the like (Section 2A.211). Sec. 2A.524. Insurance: The lease may require the tenant to maintain renter's insurance. Terms with respect to which the confirmatory memoranda of the parties agree or which are otherwise set forth in a writing intended by the parties as a final expression of their agreement with respect to such terms as are included therein may not be contradicted by evidence of a prior agreement or of a contemporaneous oral agreement but may be explained or supplemented: (1) by course of dealing or usage of trade or by course of performance; and. Sec. Sept. 1, 2003. (3) "Commercial unit" means a unit of goods as by commercial usage is a single whole for purposes of lease and division of which materially impairs its character or value on the market or in use. (21) "Present value" means the amount as of a date certain of one or more sums payable in the future, discounted to the date certain. Updated June 13, 2022. (2) The lessor or the supplier may demand in writing that the lessee turn over control of the litigation including settlement if the claim is one for infringement or the like (Section 2A.211) or else be barred from any remedy over. Sec. (c) A lessee has a right of replevin, detinue, sequestration, claim and delivery, or the like for goods identified to the lease contract if after reasonable effort the lessee is unable to effect cover for those goods or the circumstances reasonably indicate that the effort will be unavailing. The first party is the landlord, who usually owns the property. (12) "Lease contract" means the total legal obligation that results from the lease agreement as affected by this chapter and any other applicable rules of law. (a) A lease, although subject to this chapter, is also subject to any applicable: (1) certificate of title statute of this state, including Chapter 501, Transportation Code, Chapter 31, Parks and Wildlife Code, and Subchapter E, Chapter 1201, Occupations Code; (2) certificate of title statute of another jurisdiction (Section 2A.105); or. Texas Landlord and Tenant Laws. 2A.522. Sec. Language to exclude all implied warranties of fitness is sufficient if it is in writing, is conspicuous and states, for example, "There is no warranty that the goods will be fit for a particular purpose.". Sec. (2) in the absence of those terms, 20 percent of the then present value of the total rent the lessee was obligated to pay for the balance of the lease term, or, in the case of a consumer lease, the lesser of such amount or $500. 2A.518. 2A.406. Warranties, whether express or implied, must be construed as consistent with each other and as cumulative, but if that construction is unreasonable, the intention of the parties determines which warranty is dominant. (4) the delivery was procured through fraud punishable as larcenous under the criminal law. (c) A subsequent lessee from the lessor of goods that are subject to an existing lease contract and are covered by a certificate of title issued under a statute of this state or of another jurisdiction takes no greater rights than those provided both by this section and by the certificate of title statute. Sept. 1, 1993. . 2A.309. Sec. 2A.505. Unless the context clearly indicates otherwise, the term includes a sublessor. 2A.305. If the lease contract so provides, the lessor may require the lessee to assemble the goods and make them available to the lessor at a place to be designated by the lessor which is reasonably convenient to both parties. (b) A promise that has become irrevocable and independent under Subsection (a): (1) is effective and enforceable between the parties, and by or against third parties including assignees of the parties; and. (e) The interest of a lessor of fixtures, whether or not perfected, has priority over the conflicting interest of an encumbrancer or owner of the real estate if: (1) the fixtures are readily removable factory or office machines, readily removable equipment that is not primarily used or leased for use in the operation of the real estate, or readily removable replacements of domestic appliances that are goods subject to a consumer lease, and before the goods become fixtures the lease contract is enforceable; or, (2) the conflicting interest is a lien on the real estate obtained by legal or equitable proceedings after the lease contract is enforceable; or, (3) the encumbrancer or owner has consented in writing to the lease or has disclaimed an interest in the goods as fixtures; or. Unless the context clearly indicates otherwise, the term includes a sublease agreement. TERRITORIAL APPLICATION OF CHAPTER TO GOODS COVERED BY CERTIFICATE OF TITLE. 1276, Sec. (20) "Merchant lessee" means a lessee that is a merchant with respect to goods of the kind subject to the lease. LESSEE'S DUTIES AS TO RIGHTFULLY REJECTED GOODS. 2A.204. (a) Specific performance may be decreed if the goods are unique or in other proper circumstances. (a) Whether the lessor or the lessee is in default under a lease contract is determined by the lease agreement and this chapter. (c) Unless the contrary intention clearly appears, expressions of "cancellation," "rescission," or the like of the lease contract may not be construed as a renunciation or discharge of any claim in damages for an antecedent default. Sec. (4) "Conforming" goods or performance under a lease contract means performance or goods that are in accordance with the obligations under the lease contract. Added by Acts 1993, 73rd Leg., ch. 1, eff. (a) Subject to the provisions of Section 2A.303, a buyer or sublessee from the lessee of goods under an existing lease contract obtains, to the extent of the interest transferred, the leasehold interest in the goods that the lessee had or had power to transfer, and except as provided by Subsection (b) and Section 2A.511, takes subject to the existing lease contract. (2) If the goods are held by a bailee to be delivered without being moved, the risk of loss passes to the lessee on acknowledgement by the bailee of the lessee's right to possession of the goods. (a) A lessee obtains an insurable interest when existing goods are identified to the lease contract even though the goods identified are nonconforming and the lessee has an option to reject them. Sec. 2A.303. (c) If the lessor's disposition is by lease agreement that for any reason does not qualify for treatment under Subsection (b), or is by sale or otherwise, the lessor may recover from the lessee as if the lessor had elected not to dispose of the goods and Section 2A.528 governs. (g) In cases not within the preceding subsections, priority between the interest of a lessor of fixtures, including the lessor's residual interest, and the conflicting interest of an encumbrancer or owner of the real estate who is not the lessee is determined by the priority rules governing conflicting interests in real estate. (c) Except as otherwise provided in Sections 9.317, 9.321, and 9.323, a lessee takes a leasehold interest subject to a security interest held by a creditor of the lessor. Sept. 1, 1997; Acts 2003, 78th Leg., ch. Sept. 1, 1993. 570, Sec. Subject to Section 2A.404 on substituted performance, the following rules apply: (1) Delay in delivery or nondelivery in whole or in part by a lessor or a supplier who complies with Subdivisions (2) and (3) is not a default under the lease contract if performance as agreed has been made impracticable by the occurrence of a contingency the nonoccurrence of which was a basic assumption on which the lease contract was made or by compliance in good faith with any applicable foreign or domestic governmental regulation or order, whether or not the regulation or order later proves to be invalid. 2A.302. This promise is enforceable by either the transferor or the other party to the lease contract. (c) A creditor of a seller may treat a sale or an identification of goods to a contract for sale as void if as against the creditor retention of possession by the seller is fraudulent under any statute or rule of law, but retention of possession of the goods pursuant to a lease contract entered into by the seller as lessee and the buyer as lessor in connection with the sale or identification of the goods is not fraudulent if the buyer bought for value and in good faith. 165, Sec. Generally, the primary purpose of drafting a Texas Lease Agreement is to document the terms and rent payment details associated with a tenancy. The circumstances of the preparation of the report may be shown to affect its weight but not its admissibility. (e) If the lease agreement covers both real property and goods, the party seeking enforcement may proceed under this subchapter as to the goods, or under other applicable law as to both the real property and the goods in accordance with that party's rights and remedies in respect of the real property, in which case this subchapter does not apply. (b) A signed lease agreement that excludes modification or rescission except by a signed writing may not be otherwise modified or rescinded, but, except as between merchants, such a requirement on a form supplied by a merchant must be separately signed by the other party. (2) impose any duty or liability under the supply contract on the lessee. Amended by Acts 2003, 78th Leg., ch. (d) A subsequent buyer or lessee who buys or leases from the lessor in good faith for value as a result of a disposition under this section takes the goods free of the original lease contract and any rights of the original lessee even though the lessor fails to comply with one or more of the requirements of this chapter. 9, eff. Section 2A.309(a)(4). 542, Sec. Sec. 2.21, eff. (a) If a third party so deals with goods that have been identified to a lease contract as to cause actionable injury to a party to the lease contract: (1) the lessor has a right of action against the third party; and. Sec. Sec. Added by Acts 1993, 73rd Leg., ch. 576, Sec. 2A.405. Specific sections cover the residential landlord's responsibility and liability for repairs, retaliation, the rental application, evictions, security deposits, lockouts, smoke alarms, utility cutoffs, and many other topics. (d) In addition to the extension of the benefit of the supplier's promises and of warranties to the lessee under Subsection (a), the lessee retains all rights that the lessee may have against the supplier which arise from an agreement between the lessee and the supplier or under other law. (2) if delivery has already been taken, payment by the means or in the manner provided by the regulation discharges the lessee's obligation unless the regulation is discriminatory, oppressive, or predatory. (a) If the court as a matter of law finds a lease contract or any clause of a lease contract to have been unconscionable at the time it was made, the court may refuse to enforce the lease contract, or it may enforce the remainder of the lease contract without the unconscionable clause, or it may so limit the application of any unconscionable clause as to avoid any unconscionable result. Sec. (2) the lessee fails to make an effective rejection of the goods (Section 2A.509(b)). 2A.501. (2) there is a writing, signed by the party against whom enforcement is sought or by that party's authorized agent, sufficient to indicate that a lease contract has been made between the parties and to describe the goods leased and the lease term. July 1, 2001. The Texas residential lease agreement ("rental agreement") is a written contract outlining the terms and conditions of renting a property for both the landlord and tenant. The third party is the subtenant, who rents the property from the tenant. SPECIAL RIGHTS OF CREDITORS. A lessee who has rightfully rejected or justifiably revoked acceptance shall account to the lessor for any excess over the amount of the lessee's security interest (Section 2A.508(e)). (a) Subject to Subsection (b) and even though the goods have not been shipped, a lessee who has paid a part or all of the rent and security for goods identified to a lease contract (Section 2A.217) on making and keeping good a tender of any unpaid portion of the rent and security due under the lease contract may recover the goods identified from the lessor if the lessor becomes insolvent within 10 days after receipt of the first installment of rent and security. (a) If the lessee receives notification of a material or indefinite delay or an allocation justified under Section 2A.405, the lessee may by written notification to the lessor as to any goods involved, and with respect to all of the goods if under an installment lease contract the value of the whole lease contract is substantially impaired (Section 2A.510): (1) terminate the lease contract (Section 2A.505(b)); or. 570, Sec. EXCLUSION OR MODIFICATION OF WARRANTIES. (3) in determining attorney's fees, the amount of the recovery on behalf of the claimant under Subsections (a) and (b) is not controlling. In ascertaining that intention the following rules apply: (1) exact or technical specifications displace an inconsistent sample or model or general language of description; (2) a sample from an existing bulk displaces inconsistent general language of description; and. View Filled Sample PDF. 122 (S.B. (c) If the lessee's cover is by lease agreement that for any reason does not qualify for treatment under Subsection (b) or is by purchase or otherwise, the lessee may recover from the lessor as if the lessee had elected not to cover and Section 2A.519 governs. (e) The parties by agreement may determine that one or more parties have an obligation to obtain and pay for insurance covering the goods and by agreement may determine the beneficiary of the proceeds of the insurance. MERCHANT LESSEE'S DUTIES AS TO RIGHTFULLY REJECTED GOODS. Section 9.102(a)(42). Amended by Acts 2003, 78th Leg., ch. LESSEE'S DAMAGES FOR NONDELIVERY, REPUDIATION, DEFAULT, AND BREACH OF WARRANTY IN REGARD TO ACCEPTED GOODS. July 1, 2001. (a) Until the repudiating party's next performance is due, the repudiating party can retract the repudiation unless, since the repudiation, the aggrieved party has canceled the lease contract or materially changed the aggrieved party's position or otherwise indicated that the aggrieved party considers the repudiation final. (14) "Lessee" means a person who acquires the right to possession and use of goods under a lease. 414, Sec. The term also includes the unborn young of animals. This means you could be forced out on short notice. Sept. 1, 1993. 414, Sec. Sec. (a) This chapter applies only to the relationship between landlords and tenants of commercial rental property. 1, eff. Sec. Before signing, the tenant will undergo a credit verification by completing a rental application.Once approved by the landlord, the standard lease will be drafted and signed between the parties. Sec. THIRD-PARTY BENEFICIARIES OF EXPRESS AND IMPLIED WARRANTIES. Texas imposes specific and distinct requirements for landlords and tenants when executing a Lease/Rental Agreement. (a) Damages payable by either party for default or any other act or omission, including indemnity for loss or diminution of anticipated tax benefits or loss or damage to lessor's residual interest, may be liquidated in the lease agreement but only at an amount or by a formula that is reasonable in light of the then anticipated harm caused by the default or other act or omission. LESSOR'S STOPPAGE OF DELIVERY IN TRANSIT OR OTHERWISE.

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