ask george & chuck
May 19, 2008

Rent caps, square-footage errors
Answers to real estate questions as appearing
in the Houston Chronicle

Dear George: Is there a limit to how much my landlord can raise my rent? I was notified that the rent for my unit will go up 25% when my current lease expires in two months. I'm a senior citizen and am worried that I might be taken advantage of.

Answer: A landlord in Texas is free to set rent at any level, and the market will dictate whether a tenant will pay it. You may want to hire a REALTOR® to research whether a 25% rent increase is justifiable for your unit based upon the other units available in your area. You could also contact the Texas Department of Housing and Community Affairs and ask if they offer any programs to help senior citizens like you.

Dear George: We put a deposit on a property that was for sale by the owner. We since changed our mind and would like our deposit back. The owner refuses to pay us. Can he do this?

Answer: A "for-sale-by-owner" or FSBO is not represented by a real estate licensee and, therefore, can use just about any agreement or contract he wants. Real estate licensees use contracts that specifically define buyers' and sellers' rights and obligations; in other words, you'd know ahead of time what would happen if you gave the seller money then changed your mind. Even if you choose not to hire a real estate professional, don't provide any seller with money without a written agreement signed by both of you that describes your rights and the seller's obligations.

Dear George: In 2003, I purchased a house that was listed at 2,828 square feet in its appraisal. I sold it in 2007, and it re-appraised at 2,379 square feet. This resulted in a $15,000 lower sales price. Both appraisals were by certified bodies. Can I seek loss of selling costs?

Answer: One of the appraisers probably made a mistake. Ask both appraisers how they arrived at the square footage, as there is no standard way to measure it. Who told you the square footage when you bought the house? If it was the seller, you may have a case. If it was the appraiser's opinion, you'll have a tougher burden of proof. Either way, you'll have to explain how you agreed to the purchase price in 2003 and agreed to the selling price in 2007 but now think they were unfair. Hire an experienced attorney who can provide specific advice to you.