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Selling a Duplex or Small Multifamily in Texas

Two to four units are still a TREC residential contract. They are not the same disclosure, and five or more units leave that form behind.

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Owners lump a duplex, a fourplex and a 20-unit building into one phrase. Texas paperwork does not. The line that matters first is how many dwelling units the property has, and the line that matters next is whether anyone is in them under a lease.

The house disclosure stops at one dwelling

Property Code Section 5.008(a) applies to a seller of residential real property comprising not more than one dwelling unit. A duplex, triplex or fourplex is outside that sentence. You do not complete the one-unit notice merely because a buyer asks for "the disclosure." Paragraph 7B of TREC No. 20-19, the One to Four Family Residential Contract, has a checkbox for the case where the seller is not required to furnish that notice. Use it when the statute does not apply, instead of inventing answers on the wrong form.

Being outside Section 5.008 is not a license to hide a collapsed foundation. Fraud and the contract's representations are still there. Tell the buyer what you know about the roof, the systems and any city notice, in writing, even when the statutory form does not attach.

Two to four units stay on the residential contract

TREC 20-19 is the promulgated form for one to four families. It still covers surveys, title objections, possession and casualty. Paragraph 7A still requires existing utilities to be turned on, at the seller's expense, while the contract is in effect, so an inspector can test them. A vacant unit with the power cut is a problem on this form the same way it is on a house. Our utilities guide for a vacant house is aimed at single homes; the contract sentence is the part that also hits a vacant side of a duplex.

Lender repairs under paragraph 7E work the same way: unless both sides agree in writing, neither has to pay for them, and the contract can end. A fourplex that will not pass an appraisal is a frequent reason financed buyers disappear.

Tenants do not vanish at the closing table

A lease is a contract with the occupant. Selling the building does not, by itself, erase a written lease that has months left. Property Code Chapter 92 is the residential-tenancy chapter: security devices, smoke alarms, and the rules for ending a tenancy are in there, and they follow the landlord relationship. The buyer who takes the building subject to a lease steps into the landlord's duties for the rest of that term. Get the leases, the ledgers and the deposits on the table before you sign. Deposits are the tenant's money. The contract should say who holds them after closing.

If a unit is empty between tenants, read what a Texas landlord risks while a rental sits empty before you decide to wait for a new occupant. Lost rent is not the only cost.

Five or more units leave the TREC house form

TREC 20-19 is not the form for a property with five or more dwelling units. Those sales are usually written on a commercial contract prepared for that transaction, with rent rolls, estoppels and a different title commitment. Do not force a four-family form onto a small apartment building because it feels familiar. A Texas real estate attorney should draft or review that contract. We can still buy a small apartment building as-is; the paper is just not the house form.

What a buyer of income property will ask

You do not need a broker's pro forma. You need the actual leases and the actual bills. A number built on guessed rent is a number that changes.

Selling the property to Cash Home Advisors

You can sell a duplex, fourplex or small apartment property as-is, without repairs. We pay all closing costs, and we can close in 7–14 days when title is clear and any lease paperwork is in hand. There is no agent commission. The request is free and carries no obligation, and a real person calls you back. Start with the form or how it works. For a North Texas address, see Fort Worth and Dallas.

A property outside North Texas starts from the Texas hub.

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Frequently Asked Questions

Does a Texas duplex seller fill out the house disclosure?

Not under Section 5.008. That section covers residential property with not more than one dwelling unit. The one-to-four contract has a box for when the notice is not required.

Can I sell a fourplex with tenants in place?

Yes. The leases remain in force unless they end on their own terms or the contract and the tenants agree otherwise. Bring the leases and the deposit ledger to the title company.

What contract is used for a 12-unit building?

Not TREC 20-19. That form stops at four families. A larger property is typically sold on a commercial contract. Have a Texas real estate attorney review it.

Do I have to evict tenants before a cash sale?

No. An occupied property can be sold subject to the leases. Eviction is a separate justice-court process under the Property Code, and it is not a prerequisite to a sale.

Get Your Cash Offer

We can close in 7–14 days. We pay all closing costs, and you can sell as-is with no repairs.

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