I represented a tenant, and I would like a copy of the lease agreement the tenant signed. The landlord’s agent refused to give me a copy. As the tenant’s agent, am I entitled to receive a copy of the lease agreement?
Nothing prohibits you from receiving a copy of the lease agreement. The lease does not contain personal identifying information that would prohibit the landlord’s agent from providing a copy, so the landlord’s agent may not use this as a justification.
However, nothing requires the landlord or the landlord’s agent to give you one. You were right to ask the landlord’s agent first for a copy of the lease agreement. Because he refused, you could ask the tenant directly, because the tenant is required to receive a copy. Chapter 1101.652 (b)(28) of The Real Estate License Act allows TREC to take disciplinary action against a broker or salesperson who refuses to provide a copy of a document related to a transaction to a person who signed the document.
A tenant called me complaining that his roof was leaking. I checked with the owner, who gave the go-ahead for me to hire someone to fix the roof. The contractor fixed the roof and gave me a bill. The terms of the bill stated that if I pay the bill in full within two weeks, I would get a discount. If I pay the bill within two weeks, but the owner can’t pay me until after two weeks, can I get a discount for paying early but then charge the owner the regular price, keeping the difference for myself?
You may do this only with the informed consent of your client. The Real Estate License Act Section 1101.652(b)(13) provides that a licensee’s license may be suspended or revoked if the license holder accepts, receives, or charges an undisclosed commission, rebate, or direct profit on expenditures made for a principal. Also, Article 6 of the Code of Ethics prohibits REALTORS® from accepting any commission, rebate, or profit on expenditures made for their principal without the principal’s knowledge and consent.
A tenant moved in and now says that the house is haunted. She wants to vacate. What is the best way to address the issue?
Inform her that she may be in breach of the lease if she vacates. Tell her that the landlord may exercise his default remedies under the lease. (The landlord must employ reasonable measures to mitigate any loss.) You might try to determine why she believes the house is haunted and see if there is a reasonable explanation for any mysterious circumstances. Also, ask the tenant to provide written explanations and requests for your records.
I’m the listing agent for an owner leasing his single-family home. We both signed the Residential Real Estate Listing Agreement, Exclusive Right to Lease (TXR 1102). A prospective tenant called me to ask questions about the property and request a rental application. If I provide the rental application to the prospect, will this trigger an intermediary relationship?
No. Merely discussing the listing and providing the rental application will not trigger an intermediary relationship. However, if the prospective tenant requests that you represent her in the lease negotiation process, you will need to obtain her written consent for your broker to act as an intermediary. You can use the Residential Buyer/Tenant Representation Agreement (TXR 1501) for this purpose. Then you’ll need to comply with the steps required for an intermediary relationship, which apply to both sales and leasing transactions.
A tenant who is three months into his lease contacted me because he’s interested in purchasing the property, which I manage. The tenant requested that I represent him in the purchase of the property. How do I represent the tenant if I already represent the owner? Can my broker be appointed to represent the tenant?
These facts will trigger an intermediary relationship. Since you represent the seller, you need to verify that the listing agreement permits your broker to act as an intermediary. If so, the tenant will also need to give written consent for an intermediary relationship. The Residential Buyer/Tenant Representation Agreement (TXR 1501) is sufficient for obtaining written consent.
Next, you will need to determine whether it’s the policy of the brokerage firm to appoint license holders to each side. If so, the broker is prohibited from appointing himself to represent the tenant. The broker will need to appoint another agent within the brokerage firm to represent the tenant. If appointments are made, the owner and the tenant will need to be provided with written notice of the appointment. The Intermediary Relationship Notice (TXR 1409) serves this purpose. Appointments are not mandatory, but they allow license holders to provide advice and opinions to the parties.
What’s the difference between Paragraphs 4A and 4B in the Texas REALTORS® Residential Lease (TXR 2001)?
Paragraph 4A applies to the initial term of the lease. Paragraph 4B applies if the lease is on a month-to-month basis.
For example, a tenant has a one-year lease with a January 31 expiration date of the initial term. Paragraph 4A(2) is checked, which requires a 60-day notice of termination before the expiration date. If the landlord or tenant doesn’t provide the necessary written notice of termination on or before December 3, a time period of 60 days, the lease will automatically renew on a month-to-month basis.
Paragraph 4B will now apply for notice of termination. The period for giving notice now will depend on whether 4B(1) or 4B(2) is checked.
Both paragraphs require written notice of termination, not verbal notice. If the landlord does not intend to renew, he should provide the Notice of Landlord’s Intent Not to Renew (TXR 2217) within the necessary time frame required under the lease.
A tenant and landlord executed a Residential Lease (TXR 2001). In Paragraph 4A, Box 2 was checked requiring either party to give 60 days’ notice to terminate the lease. In Paragraph 4B, Box 2 was checked requiring at least 30 days’ notice if the lease renewed on a month-to-month basis. The lease automatically renewed on a month-to-month basis because neither party provided 60 days’ notice of termination as required by Paragraph 4A. The tenant now wants to terminate the lease, but the landlord is requiring the tenant to give 60 days’ notice to terminate. Can the landlord require the tenant to give 60 days’ notice now that the lease is on a month-to-month basis?
No. Under Paragraph 4B(2), the tenant is only required to provide 30 days’ notice.
An agent at my brokerage wants to begin a full-service property-management practice. Can she have her own trust account to collect and disburse security deposits, rents, and other funds?
No. TREC rules make it clear that salespeople cannot have their own trust accounts. A broker may only authorize another license holder to withdraw or transfer funds from a trust account, but the broker remains responsible for all deposits to and disbursements from the broker’s trust account. Remember, a broker is responsible for all authorized acts of sponsored salespeople. You and your agent should review TREC Rule Section 535.146 before she begins her practice.
A friend of mine gets paid to manage other friends’ properties. He says he doesn’t need a real estate license to do this. Is this true?
It depends on what services your friend is providing in his property management. Under The Real Estate License Act, a license is required when a person handles the leasing of someone else’s property. Additionally, someone who controls the acceptance or deposit of rent for a single-family residential property on behalf of another person must be licensed.
A person controls the acceptance or deposit of rent in either of these scenarios:
- The person has the authority to use the rent to pay for services related to management of the property
- The person has the authority to deposit the rent into a trust or bank account and sign checks or withdraw money from the account.
The tenant for a property I manage has asked the landlord to replace the carpet in one room because she says it looks worn and needs repair. Does the landlord have to fulfill this request?
No. Neither the Texas Property Code nor the Texas REALTORS® Residential Lease (TXR 2001) would require a landlord to replace or repair something like this.
While Paragraph 18D(1) of the Texas REALTORS® Residential Lease states that the “landlord will pay to repair or remedy conditions in the property in need of repair if the tenant complies with the procedures for requesting repairs,” this does not mean that the landlord has the obligation to make every requested repair. Paragraph 18D(2) of the Residential Lease states that a landlord will not pay to repair “items that are cosmetic in nature with no impact on the functionality or use of the item,” and a landlord could argue that worn carpet falls under this category. Additionally, Paragraph 18C(1) states that all decisions regarding repair will be at the landlord’s sole discretion.
A tenant notified me yesterday that his water heater stopped working. A repairman came to the property today, but the water heater requires a part that won’t arrive until tomorrow. The tenant is upset and wants the landlord to pay for a hotel room for tonight. Is the landlord obligated to do this?
No. Nothing in the Texas Property Code or Texas REALTORS® Residential Lease (TXR 2001) requires the landlord to put the tenant in a hotel while repairs are being made. A landlord isn’t obligated to provide alternative housing for a tenant based on a needed repair, even if that repair relates to a condition that could be construed as materially affecting the physical health and safety of the ordinary tenant.
If the landlord fails to make a diligent effort to remedy a condition that materially affects the physical health and safety of an ordinary tenant, the tenant’s remedies are found in Section 92.056 of the Texas Property Code.
I was managing a property, and the owner terminated the management agreement effective today. A tenant in the property previously notified us that he will not renew the lease. The lease ends 30 days from today. I have the security deposit in my trust account. What do I do with the security deposit?
The security deposit is a deposit given by the tenant to the landlord as security for the tenant’s performance under the lease. The landlord must account to the tenant for the deposit at the end of the lease. Under most property-management agreements, the property manager holds the security deposit during the lease term on behalf of the landlord and accounts to the tenant for the landlord at the end of the lease term. Since you are no longer the landlord’s agent, you should forward the security deposit to the landlord and remind him he has a duty to account for the deposit when the tenant vacates the property.
You should send written notice to the tenant advising him that you are no longer the agent for the landlord, that you tendered the security deposit to the landlord, and that the landlord is now responsible to account to the tenant for the security deposit.
Alternatively, you and the landlord may agree that you will continue to hold the money and account for the security deposit, but such an arrangement should be stated in writing and be specific as to the parties’ responsibilities, such as who will inspect the property for damage upon move-out and who will make determinations about any deductions.
I manage rental properties for a client who doesn’t want people smoking on his property. If we deny potential tenants’ applications because they smoke, will this violate any federal fair-housing laws?
No. Federal fair-housing laws make it illegal for the landlord to choose tenants based on their race, color, sex, national origin, religion, disability, or familial status. However, people who smoke are not a protected class. A landlord can refuse to lease to potential tenants who smoke as long as the landlord consistently enforces such prohibition.
Is re-keying required for a temporary lease?
My seller-client accepted an offer on his property from buyers who asked to move in 30 days before closing. My client agreed, and the parties used the Buyer’s Temporary Residential Lease (TXR 1911, TREC 16-6) as part of the contract. Will my client have to re-key the exterior doors before the buyers move in since he will be acting as their landlord for that period?
No. Paragraph 22 of the Buyer’s Temporary Residential Lease explains that the requirements of Section 92.152 of the Texas Property Code relating to security devices, including re-keying of exterior doors, do not apply to a residential lease for a term of 90 days or less.
Boost your property-management knowledge with two Texas REALTORS® certifications
The Texas Residential Leasing Specialist is an introductory-level certification program that includes 12 hours of CE courses related to the fundamentals and forms used in residential leasing.
The Texas Residential Property Manager certification requires completion of six 3-hour courses and verification of 200 unit-years of residential management experience (a unit-year equals management of one unit for one year).
Learn more at texasrealestate.com/designations.
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