Is Rental Deposit Legally Binding in Texas

[RyanATX]

Hi, my fiance and I decided upon a house, paid the deposit to the owner, were given a move-in date and were told we would sign the lease when we did the walk through a few days later. Unfortunately, I got a call this morning saying that they had rented the property to someone else who offered more money after we had already verbally agreed on the price and paid the deposit in cash. We were furious, but I think legally they can maybe do this, but I'm not sure. Any help would be great. Thanks in advance!

 

[Gail_in_Georgia]

The issue that often comes up with this is did you give them a "security deposit" or a "holding deposit" (and, interestingly enough, these questions are usually from a landlord who has taken a deposit and then it's the tenants that change their mind, leaving the landlord wondering if they can keep the deposit).

A security deposit is used to provide coverage for damages (above normal wear and tear) at the end of the lease. It can also be used to cover rent should a tenant break a lease early.

A holding deposit (which is not refundable should a tenant change their mind on leasing a place) is a financial guarantee to hold the actual unit.

What were your funds used for?

Gail

 

[RyanATX]

The deposit we put down was to hold the property until the beginning of our lease on the 15th of Sept. We were given a written receipt that shows we paid the $1000 and all. We were able to get the money back as of a few minutes ago, but the owners didn't even act like they had done anything wrong. The more or less used our agreement as a bargaining tool to find someone who would pay more. What bad ethics...

 

[Gail_in_Georgia]

Yes; I agree. This deposit does sound like it was a "holding fee" to secure the rental.