According to Section 92.010, the maximum number of adults a landlord may allow to occupy a dwelling is three times the number of bedrooms in the dwelling. \n\nWhat are the exceptions to the specified occupancy rate?\nThe maximum occupancy rate may be exceeded:\n• when and to the extent that state or federal fair\nhousing law allows a higher rate and\n• when an adult is seeking temporary sanctuary from family violence as defined in Section\n71.01 of the Texas Family Code. However, the\nexcess occupancy rate for family violence cannot exceed one month.\nWho may enforce the occupancy rate\nlimits?\nGenerally, the enforcement lies with an individual\nwho owns or leases living space within 3,000 feet\nof a dwelling in violation. A governmental entity or\ncivic association acting on the individual’s behalf\nmay also enforce the limits, but the remedies differ.\nWhat are the remedies for a violation?\nThe prevailing party for enforcement of the occupancy limits may enjoin the violation, recover court\ncosts and reasonable attorneys’ fees. A prevailing\nplaintiff may recover $500 for each violation in addition to court costs and reasonable attorneys’ fees.\nIt is difficult to determine the difference between a\n“prevailing party” and a “prevailing plaintiff.” Also,\nit is unclear what each violation means.\nIf each violation refers to “each lawsuit,\" then 50\nindividuals living within 3,000 feet of a dwelling in\nviolation may each recover $500. If the term refers to\nper person per day of violation, how many violations\noccur when three too many adults occupy a dwelling\nfor 30 days? Is this one violation, three violations or\n90 (3 X 30) violations?

Withdraw is the best way to handle IF it is understood and agreed upon with the seller. They MUST understand that you are still the listing agent and that are representing them and the listing.

Rules and Regulations—Multiple Listing Service (“MLS Rules)\nof the Houston Realtors® Information Service, Inc. (“HRIS”)\n\nLISTING PROCEDURES\n\n1. Listings and Types of Properties: Listings of residential properties of the\nfollowing types, which are listed subject to a real estate broker’s license, located within\nthe territorial jurisdiction of the Multiple Listing Service (“MLS”) taken by Participants (also\nreferred to as Participant Subscribers) must be broker-loaded with the MLS within three\n(3) days after the commencement of the term of the listing contract and all necessary\nsignatures of seller(s) or lessor(s) have been obtained.