An Lease is signed without security deposit and first months of rent. Is this a fully executed lease?

Question

Just curious about this topic.  Have a lease signed but tenant refuse to pay security deposit and first month of rent until their lease starts which is about a month from now.  There is a what if scenario that the tenant backs out and you really can\'t do much about it.  The sign lease is still considered fully executed?  Thanks!

Karen Sherrill · Accepted Answer

Paragraph 10A of the lease states that \"on or before execution the tenant will pay a security deposit to the landlord in the amount\" and means specified in the lease. In hindsight, the landlord should not have signed the lease without the security deposit in hand.  The lease should also have a date the first month\'s rent is due in paragraph 5A.  You may have an executed lease, but there must be money involved for consideration to make it valid based on my understanding (I\'m not an attorney). If the tenant has already broken the terms of the lease they signed, they may also be in breach of contract.  Best to connect with your broker and TREC legal advisory on how to proceed for all parties concerned.

Edward Wang

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