Residential lease assumption

Status: Open
Nov 23, 2022 316 Answer a Question

When a buyer assumes an existing residential lease and a tenant in a purchase, we use the addendum regarding the residential leases. This form gives no information regarding the security deposit or rent amount so how does a tile company know how much money to debit the owner and credit to the buyer who is assuming the lease?

Asked by
Roman Rodriguez
About 2 months ago
Hello, Since the buyer is assuming responsibility of the lease, the amount will be disclosed in the actual lease documents. In section 10 of the Texas promulgated lease (Security Deposit), it should list the amount of the security deposit. If it is another lease form, you will need to find the section that outlines the amount. You can provide the lease and that particular page to the title company so that they can credit/debit the correct parties.
Pius Dawson
About 1 month ago
You can use the form TXR2210. NOTICE TO TENANT OF CHANGE IN MANAGEMENT AND ACCOUNTABILITY FOR SECURITY DEPOSIT. Paragraph 1 you can mark that the previous owner sold the property. Paragraph 2A you can enter the deposit amount plus any deductions necessary. Paragraph 2B you enter the name of the person responsible for holding the deposit. Paragraph 2C you enter the name and contact info of the new owner. Only the new owner needs to sign this and ensure that this is posted to the front door of the home and also sent to the tenant9s) by certified mail. Have your title company credit the new owner the deposit amount at closing. This deposit you can keep in an interest bearing account and only the deposit needs to be returned at the end of the lease period. Hope this helps
Disclaimer: Answers provided are just opinions and should not be accepted as advice.
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