Texas Real Estate Leasing & Property Management
The leasing module covers the legal framework of residential and commercial leases in Texas and the duties of a license holder who manages property for an owner. The biggest source of test content is Texas Property Code Chapter 92, the residential landlord-tenant statute, which prescribes security deposit timing, required security devices, the landlord's repair duty, and the consequences of a wrongful deposit withholding. Chapter 92 is unusually specific by statute standards — it names dollar amounts, day counts, and specific devices — and the exam exploits that specificity by testing the precise numbers. The exam also tests the agency relationship between owner and property manager, standard lease provisions, and the statutory repair duties for health-and-safety conditions. Property management is a real fiduciary relationship under TRELA, so a license holder managing property for an owner owes the same OLD CAR duties as any other agent — a point the exam tests by combining management facts with breach-of-duty questions.
Key Subtopics
- Texas Property Code Chapter 92 — the residential landlord-tenant statute. The chapter is the source of most exam-tested numbers and timelines in this module.
- Security deposits — the 30-day refund deadline (§92.103) and the forwarding-address condition (§92.107). The forwarding address delays the landlord's refund obligation; it does not forfeit the tenant's right to the refund.
- Required security devices under §92.153 — window latches, doorknob locks or keyed dead bolts, sliding-door pin locks and handle latches or security bars, and keyless bolting devices and door viewers on each exterior door, subject to statutory exceptions. The landlord generally pays for required installation.
- The landlord's repair duty (§92.052) — including the 120°F hot water rule. The duty covers conditions that materially affect health and safety, and the statute spells out specific tenant remedies for non-compliance.
- The bad-faith withholding penalty (§92.109) — $100 plus three times the wrongfully withheld amount plus attorney fees. The dollar amount and the multiplier are both tested verbatim.
- Lease types — gross, net, percentage, and ground leases — and what each one means. In a gross lease the landlord pays operating expenses out of the rent; in a net lease the tenant pays some or all of taxes, insurance, and maintenance separately; a percentage lease (common in retail) bases rent on a percentage of tenant sales; a ground lease covers the land only, with the tenant typically owning improvements during the term.
- Property management agreements and the agency duties owed to the owner. A property manager acting under a written management agreement is an agent of the owner and owes fiduciary duties accordingly.
- Eviction procedure and the writ of possession process. Texas evictions follow a specific statutory path through justice court: notice to vacate, filing of the forcible-detainer suit, hearing, judgment, and (if the tenant does not appeal or vacate) issuance and execution of the writ of possession. The exam tests the sequence and the role of each step.
Study This Cluster
Leasing is statute-heavy, and the most efficient study path is to start with Chapter 92 (the deposit timeline, the device list, the repair duty) and then layer on the agency and lease-type concepts. Memorize the specific section numbers — the exam uses them as anchors in scenario questions. Use the cluster article for the statute work, then test under timed conditions.
- Landlord-Tenant Law — Chapter 92 in exam-relevant detail, including the deposit timeline and security devices.
- Property Disclosure Requirements — disclosures that carry over into lease transactions.
- Homestead Exemption & Property Tax — how residence homestead status, occupancy, and property-tax exemptions interact.
- Leasing & Property Management Practice Questions — timed practice with full explanations.
Frequently Asked Questions
- How many days does a Texas landlord have to refund a security deposit?
- Thirty days after the tenant surrenders the premises, under §92.103. If the tenant has not provided a written forwarding address (§92.107), the landlord's obligation is delayed until the address is provided, but the tenant does not forfeit the right to the refund. The exam tests both halves of this rule — the 30-day deadline and the forwarding-address effect — so know which sub-rule applies to which fact pattern.
- What is the penalty for wrongfully withholding a security deposit?
- Under §92.109, a landlord who acts in bad faith may be liable for $100, three times the amount wrongfully withheld, and the tenant's reasonable attorney fees. The exam tests the formula, so know the three components and remember that bad faith is presumed if the landlord fails to return the deposit or provide the itemized list within the 30-day window.
- Which security devices are Texas landlords required to install?
- Section 92.153 requires a window latch, a doorknob lock or keyed deadbolt, a sliding-door pin lock, a sliding-door handle latch or security bar, and a keyless bolting device — plus a door viewer on certain doors. The landlord generally pays for required installation; statutory exceptions apply. Memorize the list — exam questions frequently ask you to identify which device is missing from an incomplete list.
- Does a property manager owe fiduciary duties to the owner?
- Yes. A property manager acting under a written management agreement is an agent of the owner and owes the same OLD CAR duties as any other agent — obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care. Property-management compensation does not change the fiduciary duty; the duty runs to the owner regardless of how the manager is paid. Note that many property-management activities performed for another person for compensation require an active Texas real estate license, unless an exemption applies — performing those activities without a license can be a TRELA violation the exam may test.
Bottom Line
Leasing and property management is a statute-heavy module — most of the exam questions come directly from Texas Property Code Chapter 92. Candidates who memorize the specific section numbers and the dollar amounts in §92.109 will score reliably here. If you can recite the 30-day refund deadline, the bad-faith penalty formula, and the §92.153 device list from memory, you have the high-value items. For the full module weighting, see the Texas exam blueprint.