Who gets the security deposit when the tenants divorce?

Translate this page
A form with the words

11/14/2014 | Author: Editorial Staff

The tenants in a property I manage are a couple whose names are both on the lease. This week, they each told me that they are divorcing and gave me the required written notice to terminate their lease when it expires next month. They also both asked for the security deposit to be refunded directly to them. Who should I make the check out to if both of their names are on the lease?

Paragraph 10C of the TAR Residential Lease (TAR 2001) provides that any refund of the security deposit will be made payable to all tenants named in the lease. Since both tenants are named as parties to the lease, make the check payable to both of them.

Read more legal FAQs on texasrealestate.com.

Categories: Legal, Landlords, Renters
Tags: renters, landlord, property management, residential lease, leasing, legal, legal faq


Comments

Rick DeVoss on 11/20/2014

It would seem that this answer has over-simplified things.
Today’s leases require that ALL adults put their names on the lease.  So what if there are 3 or 4 adults with names on the lease…?  Who gets the refund then?  What if the two tenants were not married?  What if there are 3 roommates?
I don’t think this answer really addresses the issue correctly, ...but I’m not an attorney.

Why not just refund the deposit to the person who actually paid it in the first place?

Then if it’s a joint account, you could make it out to both parties.
I will agree that forged signatures are not our responsibility, as long as we were not there when the fraud took place…

Jeanne Butterfield on 11/20/2014

Make sure to make check payable to “John Doe AND Mary Doe”. If you put “OR” in place of “AND”, the bank will only require one signature.

Blaine on 11/14/2014

In regards to them forging the signature there is no liability; you cannot be held responsible for things outside your control.*

*i’m not a lawyer but I play one on comments threads.

Blaine on 11/14/2014

Whereever paragraph 32 says things should go. If it’s the address they were renting then I would go off the address given in the first notice. Both names are on the check so both would need to sign it anyway and that’s between them.

Greg Foster on 11/14/2014

Regarding the security deposit to a lease being refunded to both names on the lease in the midst of a pending divorce, who then would it be delivered to?  One or the other may most likely endorse the other’s signature and deposit in their individual account. Could that present liability headaches for the brokerage or agent?


Leave a Comment

Read our commenting policy



advertise with us

Legal disclaimer

The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on texasrealestate.com. Any legal or other information found here, on texasrealestate.com, or at other sites to which we link, should be verified before it is relied upon.

Advice for REALTORS®

How to document sellers paying for closing costs

Texas real estate market shows strength across segments in 2016

When should a back-up offer terminate?

Know your copyright risks when it comes to listing photos

Subscribe

More advice for REALTORS®