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 financial 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 financial 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 anyway. 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?

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 going to want a lot more than you're going to want to pay - unless you can make a deal with them. What's reasonable to make this go away forever?? I don't know - 2 months rent??

excon

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!

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 didn't want the apartment.

Basically, now that they know you can't 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.

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.

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.

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.

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.

Wow... sound hopeless. I just feel the Texas law to protect the consumer in these cases suck. I 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.

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.

Well if they have complaints this might help you. The only problem is that once you sign a contract your bound to it. It's like if you sign to buy a house, you've signed but its not final till your get the mortgage approval, I think they were leaving an "out" if you had bad credit, an "out" for themselves.

If taken to court my guess will be that they will twist what they said to make it sound like they were waiting on credit approval. There is no way to prove word for word exactly what the agent said, but it might be worth a try if you can't find someone to sublease to.

While I usually come down on the side of the sanctity of a contract, I am going the other way on this one. You are in the driver's seat. If they want to hold you to the contract, they have to sue you. They will have to prove they have made a good faith effort to rent the unit and failed. They will have to prove they did not give you an out. I don't think they will be able to convince a judge that you should be held to the lease.

True, but they could claim they haven't found anyone yet (assuming this goes to court in a month or more) and take it one step farther (and lie) and say there were 2 people wanting this unit and she signed first and now the other people have found another place.

It could go either way, I would aggressively try and sublease to someone else, once school is closer to starting demand should go way up.

Actually, no. Their proof is the contract, and if the contract has no early termination clause, the complex has proved its point. OP must prove the complex gave him an out; and without written documentation, he cannot do this. The complex will have to demonstrate they have made a good faith effort to find a tenant, but depending on the real estate market in that area, it can take time. I have a property which took six months to rent out; I have another (in another state, college town) which took over four. I had ads, listings, craigslist, etc all working for me, all to no avail. The market is picky, and there is no assurance the unit will be rented in a short time frame. They cannot charge for 12 months of rent (unless they get no qualified applicants for anywhere in the complex for that long), but if it takes four or five months to find a qualified tenant, then you have to pay for that time frame. You don't say how much the rent is, but assuming it's $1,000/mo, over 6 months of no tenant, it's worth the complex's time to take you to court.

Look for someone to sublet, or figure out a way to afford the place for your daughter. Can she get a roommate? The complex has a strong case - you signed the contract. You agreed to what was written on paper, and did not require an early termination clause, or an option to cancel with no penalty in XX period. Just because you back out quickly doesn't mean a thing. Just because there are similar complaints on the complex doesn't mean a thing. You signed the lease, you are bound to it. It may not be fair, but put yourself in the position of the complex; they got a renter, stopped showing the place, and now that person wants to back out. How is that fair to them?

I disagree. A verbal agreement is admissible. It may be a he said/she said thing, but with the BBB complaints, that reinforces it for the OP. Also, since the complex would be the plaintiff, the burden of proof is now on them.

Under most conditions I would agree with this. However, the situation here is that the cancellation came after only a few days. And with more than 2 months in advance of the possession date. Unless this complex has trouble finding tenants (and that is rarely the case for student housing), they have ample time to find a new tenant.

"What verbal agreement?"

See how that works?

Time of possession doesn't matter, date of ratified contract does. While I agree that it is silly this complex isn't letting OP out of the agreement, the fact remains OP signed a contract before negotiating all terms and having them put in writing. OP signed the contract before he knew for a fact he could afford it. OP is at fault, not the complex. The complex is giving him an out; allowing him to sublet. Subletting will prevent legal action and allow OP to avoid financial obligation (provided the sublessee pays as required). Maybe Texas judges rule outside the four corners of a contract, but in Virginia, if it's not in the contract, you don't stand a chance. When going into court, it's best to assume what is written will be what is adhered to.

I agree they should pursue subletting. But I think if they are sued they will win.

Guess we will have to agree to disagree then! :)