Addendum

TREC 52-1 — Addendum Regarding Fixture Leases

This addendum addresses fixtures on the property that the seller leases rather than owns. It identifies specific leased fixtures (solar panels, propane tanks, water softeners, security systems, and others), establishes which fixture leases the buyer will assume at closing, allocates assumption costs

Source: TREC
Form Number: 52-1
Category: Addendum
Revised: November 7, 2022

Used For

Residential Sales, Farm & Ranch

Form Outline

The TREC 52-1 form is organized into the following sections:

  1. Header and Property Identification
    Identifies the property address and establishes this as an addendum to the main sales contract. Must match the property address on the primary contract exactly.
  2. Leased Fixtures Identification
    Identifies which fixtures on the property are leased rather than owned by the seller. Provides checkboxes for the four most common leased fixture types and a write-in blank for additional items. Establishes that all rights to these items are governed by their underlying fixture leases.
  3. Fixture Lease Assumption at Closing
    Establishes which fixture leases the buyer will assume at closing and how assumption costs are split. The buyer assumes selected leases, pays up to a specified dollar amount for assumption/assignment costs, and the seller covers any remainder. Both parties must cooperate with lessor requirements.
  4. Removal of Non-Assumed Leased Fixtures
    Addresses what happens to leased fixtures the buyer is NOT assuming. The seller either commits to removing them before closing (and repairing any damage) or leaves them in place. Any non-assumed leased fixtures remaining on the property are still subject to the lessor's rights.
  5. Delivery of Fixture Leases
    Establishes how and when the buyer will receive copies of the fixture lease agreements. If not yet received, the seller has 5 days to deliver them, and the buyer gets a 7-day termination window after receipt. Also accommodates oral (non-written) fixture leases by requiring disclosure of key terms.
  6. Liens and Security Interests
    The seller warrants that at closing there will be no outstanding liens or security interests against the leased fixtures, except for those covered by fixture leases the buyer has agreed to assume. Any existing liens must be satisfied from the sales proceeds.
  7. Notice Regarding Attorney Consultation
    A bolded advisory notice recommending both parties consult with the fixture lessor and their own attorneys before assigning, assuming, or terminating any fixture leases. This is a critical disclaimer reinforcing that agents should not provide legal advice on these matters.
  8. Signatures
    Provides signature lines for up to two buyers and two sellers. All parties to the underlying contract must sign for the addendum to be enforceable.

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