New Required Addendum For Leasing Starting 1/1/2022

One of the most important factors in being a successful Real Estate investor is keeping up with all of the legal changes that happen within the real estate industry. 

A recent change that took place during the 87th Texas Legislature session is the law that was passed which will require all landlords to provide prospective residential tenants a notice disclosing whether the landlord is aware that the rental dwelling is located in a 100-year floodplain OR if the rental dwelling has flooded for any natural reason during the past five years.

Texas REALTORS® have created the Addendum Regarding Rental Flood Disclosure to satisfy the required disclosure. Use of the form is mandatory starting January 1, 2022.

While the one page addendum may seem simple at first sight, there are many factors that you may not be aware of.

Below is a Q&A regarding the form provided by Texas REALTORS®

When must the addendum be provided?

The Addendum Regarding Rental Flood Disclosure applies to landlords, who are required to provide the addendum to a tenant at or before the execution of the lease.

Is the addendum required if the property is not in a 100-year flood plain and has never flooded?

Yes. Landlords can indicate in the addendum that they are not aware that a dwelling is located in a 100-year floodplain or that they are not aware that the dwelling has flooded at least once within the last five years. However, a landlord is not required to disclose on the addendum that the landlord is aware that a dwelling is located in a 100-year floodplain if the elevation of the dwelling is raised above the 100-year floodplain flood levels in accordance with federal regulations.

What does "100-year floodplain" in Section A of the addendum mean?

The term “100-year floodplain” is defined as any area of land designated as a flood hazard area with a 1% or greater chance of flooding each year by the Federal Emergency Management Agency (FEMA) under the National Flood Insurance Act of 1968. FEMA maintains a flood map on its website that is searchable by address, where a landlord can determine if a dwelling is located in a flood hazard area.

What does "flooding" in Section B of the addendum mean?

Flooding is defined as general or temporary condition of partial or complete inundation of a dwelling caused by any of the following:

  • the overflow of inland or tidal waters
  • the unusual and rapid accumulation of runoff or surface waters from any established water source such as a river, stream, or drainage ditch
  • excessive rainfall

What happens if the landlord fails to provide the addendum and the dwelling floods?

Section 92.0135 of the Texas Property Code states that if the landlord fails to provide the required notice and a tenant suffers a substantial loss or damage to their personal property, then the tenant may terminate the lease by giving a written notice of termination to the landlord no later than 30 days after the date the loss or damage occurred. Substantial loss means that the cost of repairing or replacing the personal property equals 50% or more of the personal property’s market value when the flooding occurred. However, the termination would not affect a tenant’s liability for delinquent, unpaid rent or other sums owed to the landlord before the date the lease was terminated by the tenant.

If keeping up with the legal changes seems overwhelming, give us a call! We are happy to discuss all of the ways that we can help better the health of your investments.


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