Legal Question in Real Estate Law in Texas

Forfiet of Deposit

I put a depost down on a house. The deposit was put down when I filled out the application for approval for the rental of a home. I also paid an application fee of $25.00. I decided not to rent the house. I was told by the realtor that I forfeited my deposit of $1100.00. At no time was I given this notice in wrting or told this until I called and said I would not be taking the home. Since it was not in writing on the agreement, I feel I should get this back. I asked were in writing does it say I forfeit the deposit. The realtor told my it was not in writing, that they had the right to keep it for not taking it. He said it was in good faith and that I was just out of luck on getting it back. He also states he told me this would happen and it is a verbal agreement. I do not remeber at any time being told about loosing the deposit on the house if I did not take it. I had not signed a lease on the home yet, and felt I was not obligated to take possession till I did? Can you help?


Asked on 8/17/00, 5:22 pm

1 Answer from Attorneys
Charles Aspinwall Charles S. Aspinwall, J.D., LLC

Re: Forfiet of Deposit

The deposit was apparently for just this purpose. If you have it in writing that it was for another purpose, then you may have recourse. Probably you don't, however, as the deposit was designed to compensate the landlord and listing agent for taking the property off the rental market on the strength of your representation that you would rent it. The loss of rent; the loss of opportunty to rent to another, etc.

There are almost always adverse consequences in a rental or real estate transaction when you change your mind and want to back out of the deal. They didn't, after all, and they are entitled to cover their losses as a result of your actions.

Read more
Answered on 9/27/00, 9:30 am


Related Questions & Answers

More Real Estate and Real Property questions and answers in Texas