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Home > Law > Real Estate Law   »   Opting Out of Lease Contract

 
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Old Jun 14, 2007, 07:30 AM
vredmond
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Opting Out of Lease Contract

On June 8, 2007 we signed a 12-month lease with a student housing apartments in Austin, TX. Before we left we (husband and myself, daughter was there to witness) asked the agent if there would be a problem with cancelling the contract if we decide to change our minds. He assured us verbally that since we still need to provide them with finacial records (income tax return or check stubs) in order to be approved for the unit. We left there feeling comfortable that we could back out of the contract since we haven't even been approved yet, at least until they have our finacial records. In my mind it was not quite a done deal yet. On June 13, 2007 we decided we could not afford the apartment for my daughter and wanted to let the apartment complex know that we were no longer interested. And since we didn't ever provide them with my financial records I figured it wasn't totally a done deal anyways. Her scheduled moved in date was not tlil August 25th, a whole 2 months. So I didn't see a problem. Well, the lady on the phone told me that it was a binding contract and that we can not cancel and we are responsible for 12-months worth of rent! I was apauled. I told her our situation that we cannot afford the complex because my daughters grants were for dormitory housing not apartment housing and that we haven't even supplied them our financial records yet. But to no avail. What rights do I have. What type of records should I start keeping in case it goes to court. Should I send them a registered letter?

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Old Jun 14, 2007, 07:51 AM   #2  
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Quote:
Originally Posted by vredmond
What type of records should I start keeping in case it goes to court.
Hello v:

It’s a little late for written documentation, doncha think?? However, it's not as bad as you think, nor is it as good as you hope.

You signed an agreement. You'll be held to it. In real estate matters, what's written is what's so. If they didn't write your escape clause on the lease, you don't have one. That's the bad news.

The good news is the complex is required to mitigate your damages by renting the apartment as soon as possible. You're going to have to make sure they do.

Yes, this will probably get to court. They're gonna want a lot more than you're gonna want to pay - unless you can make a deal with them. What's reasonable to make this go away forever???? I dunno - 2 months rent???

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Old Jun 14, 2007, 07:51 AM   #3  
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Quote:
Originally Posted by vredmond
On June 8, 2007 we signed a 12-month lease with a student housing apartments in Austin, TX. Before we left we (husband and myself, daughter was there to witness) asked the agent if there would be a problem with cancelling the contract if we decide to change our minds. He assured us verbally that since we still need to provide them with finacial records (income tax return or check stubs) in order to be approved for the unit. We left there feeling comfortable that we could back out of the contract since we haven't even been approved yet, at least until they have our finacial records. In my mind it was not quite a done deal yet. On June 13, 2007 we decided we could not afford the apartment for my daughter and wanted to let the apartment complex know that we were no longer interested. And since we didn't ever provide them with my financial records I figured it wasn't totally a done deal anyways. Her scheduled moved in date was not tlil August 25th, a whole 2 months. So I didn't see a problem. Well, the lady on the phone told me that it was a binding contract and that we can not cancel and we are responsible for 12-months worth of rent! I was apauled. I told her our situation that we cannot afford the complex because my daughters grants were for dormitory housing not apartment housing and that we haven't even supplied them our financial records yet. But to no avail. What rights do I have. What type of records should I start keeping in case it goes to court. Should I send them a registered letter?
Yes use registered mail for your records! If you can find someone else to take over your lease there shouldn't be a problem with the landlord or ask if you are allowed to sublet. They should want to avoid court costs, but if it is a large organization, they may have their own lawyers for such purposes. Pay close attention to eviction notices and comply with any legal requisitions. If it comes to court, tell them you can only afford a few dollars a month and REMEMBER your security deposit.
Go to your local housing court and you are intitled to free legal advice.
Best of luck, it can get sticky!

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excon agrees: This is great advice, Jerry, if the daughter was moving in. But, I don't think she's going to do that.
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Old Jun 14, 2007, 07:57 AM   #4  
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It sounds like the agent was telling you they were reserving the right to refuse you as a tenant, not that you could decide you didnt want the apartment.

Basically, now that they know you cant afford it they might take the next tenant that comes along but until then, you signed a lease and your responsible for the payments. Ask around with friends and family or post an ad looking for a tenant yourself. The apartment is yours for the next year unless you find someone to take over the lease.
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Old Jun 14, 2007, 07:59 AM   #5  
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Send a letter to the complex managers to the effect that:

1) You were told verbally that the lease was not final until you provided financial documents and they were approved.
2) You are giving them sufficient notice to find a replacement tenant.
3) If they wish to pursue this further, you will be happy to defend yourself in court.

I would also check with the school if they are officially affiliated with the school and let them know what they are doing.

If they decide to take you to court, I doubt if they will win, given that you were told one thing and the amount of time they have to find a replacement.
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Old Jun 14, 2007, 09:17 AM   #6  
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I contacted the agent who helped us out on the contract and told him I will be glad to pay for any administration costs that they had to pay for to process our lease in order to get out of the lease. But I was only told that I can sublet the apartment and get out of it that way. I guess my whole complaint is that its only been 4 days since we signed the lease. The move in date is not till August 22 so the complex has plenty of time to rent it to another. I feel they were deceptive by verbally telling me that its not a done deal till we supply them with our financial records. And since I never did I felt it wasn't a done deal. Help I'm so frustrated.
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Old Jun 14, 2007, 09:22 AM   #7  
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I would see if you can sublet, but in the meantime I would still tell them to sue you if they don't like it. I doubt if they will because I don't think a court is going to side with them.
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Old Jun 14, 2007, 11:00 AM   #8  
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Always remember this:

A verbal agreement is only as good as the paper it is written on.

If you end up in court you have to prove the office gave you the "out" clause. Without written documentation, you can't do this. It makes no difference when you signed the lease or when the move in date is; you signed it, thus, you agreed to it, thus, it is legally binding. Find someone to sublet or call the office back and offer them two or three month's rent to get you out of it all together. Make sure whatever you agree to is put IN WRITING and signed by all parties.
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Old Jun 14, 2007, 11:31 AM   #9  
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Wow...sound hopeless. I just feel the Texas law to protect the consumer in these cases suck. I went ahead and filed a complaint with the Better Business Bureau and found out they are already on there for similar complaint. Maybe that would help in court...or not. I feel this type of doing business is deceiving to consumers. I'm also going to check with UT Austin if they have had complaints from students on this apartment complex.
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Old Jun 14, 2007, 11:40 AM   #10  
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I don't agree its hopeless. I think you are focusing on the wrong angle. The fact that you signed the lease is not the most important point in this instance. The fact that you rescinded within a short time giving the complex plenty of notice is what I believe a judge will give more weight to.

The fact that they have had similar complaints lodged against them will also help you.
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