Under TREC rules, a broker operates a property management division and holds tenant security deposits in the trust account. A tenant moves out and the landlord instructs the broker to withhold the entire security deposit for alleged property damage. The tenant disputes the damage claim. Under TREC rules, what should the broker do?
Correct Answer
D) Follow the Texas Property Code requirements for security deposit disposition, including providing the tenant with an itemized accounting and retaining only documented deductions
Under the Texas Property Code §92.103-109, security deposit disposition must follow specific statutory procedures. The landlord must provide an itemized list of deductions and return any refundable portion within 30 days. The broker must comply with these legal requirements regardless of the landlord's instructions.
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