USA - TEXAS Law and Practice Contributed by: Brad Holdbrook, Mary Mendoza, Michael Coleman and James Barnett, Haynes and Boone, LLP
with tenants seeking relief under doctrines like “impracticability” and “frustration of purpose” in the absence of specific force majeure provisions that mention pandemics. The outcome of these legal challenges is still pending in many cases and may set important precedents for business interruption coverage and force majeure appli - cability in future pandemics. 6.12 Restrictions on the Use of Real Estate Landlords have broad authority to impose restrictions on how a tenant may use real estate under a lease in Texas. For example, in the use provision of a lease for a commercial property, the landlord may stipulate the types of business for which a tenant may use the property and allow the landlord to declare the tenant to be in default under the lease for any violation of the use provision by the tenant. Local zoning and land use laws comprise another layer of restric - tions limiting how real estate may be used. 6.13 Tenant’s Ability to Alter and Improve Real Estate In Texas, the ability of a tenant to alter or improve leased real estate largely depends on the terms agreed upon in the rental agreement. Any modi - fications to the lease, including those allow - ing alterations or improvements by the tenant, should be discussed with the landlord and incor - porated into the agreement. While Texas law does provide broad rights around health, safety, and security, including the repair of conditions materially affecting these areas, specific rights or obligations related to property alterations or improvements are not explicitly covered in the general tenants’ rights overview provided by the Texas Attorney General’s Office. For detailed guidelines on alterations or improvements, ten - ants should refer to their specific lease agree -
ments and negotiate terms directly with their landlords. 6.14 Specific Regulations In Texas, regulations and laws governing leases vary by the category of real estate, such as resi - dential, commercial (which includes industrial, offices, and retail), and others like hotels. What follows is an overview of how laws and regula - tions apply to different types of real estate leases and any distinctions related to COVID-19 legisla - tion. Commercial Tenancies For commercial properties, including indus - trial, offices, and retail spaces, Chapter 93 of the Texas Property Code specifically addresses commercial tenancies. It outlines requirements for security deposits, the obligations for refund - ing these deposits within 60 days of termina - tion, and how damages and charges should be accounted for upon the termination of the lease. This section of the law ensures that commercial landlords maintain accurate records of all secu - rity deposits and that tenants are provided with an itemised list of deductions upon moving out. Furthermore, if a landlord’s interest in the prop - erty ceases, the new owner becomes responsi - ble for the security deposit from the date title to the premises is acquired. Residential Leases Residential leases are governed by Chapter 92 of the Texas Property Code, which focuses on the protection of renters’ rights and the obliga - tions of landlords. Important aspects include lease violation notices, the process for return - ing security deposits, lease termination, and landlord retaliation laws. For example, landlords must return security deposits within 30 days after the tenant has moved out and provide an itemised list of deductions for any damages
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