Escrow & Title
In Texas, 'possession and use' of a property prior to closing while a transaction is pending creates which type of arrangement?
AA temporary ownership interest
BA buyer's or seller's temporary residential lease addendum situation requiring a formal lease agreement✓ Correct
CA license to use without any legal obligation
DAn automatic right to the earnest money if the transaction fails
Explanation
If a buyer or seller needs to occupy a property before or after closing, TREC provides Buyer's Temporary Residential Lease and Seller's Temporary Residential Lease addenda. These create a formal landlord-tenant relationship for the temporary occupancy period, protecting both parties and establishing rent, possession date, and other terms.
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