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What is a Landlord's Right to Mortgage Clause in a Lease?

What is a Landlord's Right to Mortgage Clause in a Lease?

Q: What is the most a landlord can raise rent?

In Texas, there are no state laws limiting how much a landlord can raise rent. However, the increase must comply with the terms of the lease agreement and cannot be discriminatory. If the lease does not specify a limit, landlords can raise rent at the end of the lease term, provided they give proper notice as required by law.

Full question:

We recently bought your Texas Residential Lease form. Upon review our tenants are concerned about section 18, 'Landlord's Right to Mortgage'. They do not want to grant us Power of Attorney. Can you tell me what could potentially happen if we took this part out of the lease? Why do we need power of attorney for this specific action?

Category: Landlord Tenant
Subcategory: Residential Lease
Date: 04/07/2025
State: Texas

Answer:

This is legal language that is intended to prevent a tenant from objecting to signing a subordination agreement if you take out a new mortgage on the property. The tenant agrees that the lien of its lease will be subordinate to the lien of a mortgage. A landlord generally includes subordination language in its lease in anticipation of the requirement of its lenders. Without such a clause, the tenant could refuse to sign any such subordination agreement, but there really isn't a good reason for such objection unless they expect to sue you and get an interest in your property.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What is the rent review clause?

A rent review clause is a provision in a lease agreement that outlines how and when the rent can be adjusted. This clause typically specifies the frequency of reviews, the method for determining new rent amounts, and any conditions that must be met for a rent increase. It helps both landlords and tenants understand how rent changes will be handled during the lease term.

What is the rent review clause in a lease?

The rent review clause in a lease is a specific section that details the process for adjusting rent over time. It may include timelines for reviews, criteria for increases, and methods for calculating new rent amounts. This clause is important for ensuring that both parties are aware of potential changes to rent and can plan accordingly.

Does a landlord have to give a reason for not renting?

In general, a landlord is not required to provide a reason for refusing to rent to a prospective tenant. However, they must comply with fair housing laws, which prohibit discrimination based on race, color, religion, sex, national origin, familial status, or disability. If a landlord's decision appears discriminatory, they may face legal consequences.

What must a landlord disclose to a tenant in Texas?

In Texas, landlords must disclose certain information to tenants, including the identity of the property owner, any known lead-based paint hazards in properties built before 1978, and the tenant's rights regarding security deposits. Additionally, landlords must provide a copy of the lease agreement and any rules or regulations associated with the property.

Can I sue my landlord for not paying the mortgage?

Generally, tenants cannot sue their landlords for not paying the mortgage on the rental property. However, if the landlord's failure to pay the mortgage leads to foreclosure, tenants may face eviction. It’s important for tenants to understand their rights and seek legal advice if they are concerned about potential eviction due to foreclosure.