Deposits on rental property
Answers to real estate questions as appearing
in the Houston Chronicle
By george stephens, CRB, AND Charles J. "Chuck" Jacobus, JD
Dear George: Two days ago, a couple gave me a deposit on my rental house. My son, who recently attempted suicide, told me this morning that he wants to live in the house, and I want to help him. Am I legally allowed to return the deposit check to the couple? I haven't signed a lease with them or done any background or credit check.
Answer: Just taking the deposit does not obligate you to accept the prospective tenants. The only wrinkle would be if you had a verbal agreement to lease them the house for one year or less; leases for longer than one year must be in writing. Since you mention that you haven't even asked them for information to perform credit and background checks, however, it seems such a verbal agreement is unlikely. Therefore, returning their check appears justifiable. Contact the couple immediately and return their check.
E-mail your question to "Ask George & Chuck" or fax it to 281/596-7591. The answers to questions in this column do not contain legal advice. If you wish to obtain legal advice, you should consult your own attorney.
George Stephens, CRB, is the broker of ERA Stephens Properties. He is licensed as a mortgage broker in Texas and a real estate broker in Texas, Georgia, and Massachusetts.
Charles J. Jacobus, JD, is board certified by the Texas Board of Legal Specialization in Residential and Commercial Real Estate Law, and the author of Texas Real Estate Law and Texas Real Estate, both published by Thomson Publishing. He also teaches at Champions School of Real Estate and Houston Community College, and is an adjunct professor at the University of Houston Law Center.
George and Chuck are co-authors of Texas
Real Estate Brokerage and Law of Agency published by Thomson Publishing.
