Rental Property Investor · Austin, TX · Member since 2015 · 27 posts · 7 votes
Just closed today, May 10th on a SFR in Austin that cash flows $800 per month.
Went back to the title company to get the keys and checks, got keys and security deposit check.
I said the prorated rent check is missing and they said it's probably because the tenant didn't pay rent and the buying/selling agent should figure it out. What? Anyone ever deal with this? Seems I should have been told about this.
Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
10y
This should have been addressed prior to funding as you and your agent both dropped the ball. Did the contract call for the rent to be pro-rated at closing ? Have you contacted the tenant regarding May rent ?
Austin, TX · Member since 2011 · 119 posts · 46 votes
10y
The TREC contract doesn't specifically address pro-rated rent, only the security deposit. If you expect the pro-rated rent, it should be written into special provisions and make sure it is included on the HUD. It's going to be very difficult to collect after closing.
"If the Property is subject to a residential lease, Seller shall transfer security deposits (as defined under §92.102, Property Code), if any, to Buyer. In such an event, Buyer shall
deliver to the tenant a signed statement acknowledging that the Buyer has acquired the
Property and is responsible for the return of the security deposit, and specifying the
Rental Property Investor · Austin, TX · Member since 2015 · 27 posts · 7 votes
10y
Thanx everyone,
This is the 3rd property I've acquired with tenants, the first two I got a prorated check for rent upon closing so that is what I expected to happen. My bad. Section 13 of the contract, PRORATIONS, does mention rents. Waiting to hear back from my agent before I visit with a 3 day.