CH 9 TRANSACTIONS USED Iin REAL ESTATE TRANSACTIONS part 2.pdf.docx

Requirements for charging a refundable deposit the

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Requirements for Charging a Refundable Deposit The steps the tenant must take to reclaim the deposit must be in writing. The tenant must be given a written description and itemization of deductions. A checklist describing the condition of the rental unit must be filled out. The landlord and tenant must sign the checklist, and the tenant must be given a signed copy. Non-Refundable Fees A non - refundable fee is a fee that will not be returned to the tenant under any circumstance, and this fee cannot legally be called a deposit. The landlord must provide the prospective resident with an itemized receipt for non-refundable fees. An example of a non-refundable fee is the application/credit check fee that must not exceed $30.00. Example: In many large apartment buildings, security deposits are no longer required. Instead of a security deposit, a management company charges a non- refundable move-in or amenity fee that is less than the normal security deposit. This new rental procedure ___________________________________________________________ Unit 9: Contracts Used In Real Estate Transactions II 338
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makes it easier for tenants and the management company, because it eliminates disputes over the amount of deposits returned to tenants when the lease expires and the tenant moves out. Utilities The responsibility for payment of utilities (electricity, gas, water, and sewer) must be clearly stated in the lease. Sometimes the landlord pays for some of the services, such as water, and the tenant pays for all other utilities. Usually tenants pay for their own utilities in properties that have individually metered units. The tenant must pay connection, service, and usage fees for all utilities except for those specified by the landlord. The tenant is responsible for keeping certain utilities on during the lease term; failure to do so will result in default by the tenant. Gas, electricity, water, wastewater, and garbage services are the minimum utilities that a tenant must maintain unless they are provided by the landlord. The tenant should ensure that all the necessary utilities are available prior to signing the lease agreement. Premise Possession Texas requires that the landlord give the tenant occupancy of the premises on the date described in the lease. If the property is still occupied by a previous tenant, the landlord must take action to recover the property. If legal action is required to recover the property, the landlord is required to pay all legal costs, but may recover damages from the tenant who is in wrongful possession of the property. Premises Use In a residential lease, the property may be used only as a private dwelling and blanks are provided in this section to list specific individuals who will reside on the property during the duration of the lease. The property owner may include a special clause in the lease to restrict use. In order to comply with local ordinances, leases will require that the tenant refrain from abusing drugs or participating in gang activities on or about the premises.
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  • Fall '19
  • Leasehold estate

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