Security Deposit
Money a residential tenant gives a landlord, other than rent, to secure performance of the lease under Texas Property Code Chapter 92.
Quick flashcard
What does Security Deposit mean on the Texas real estate exam?
Answer: Money a residential tenant gives a landlord, other than rent, to secure performance of the lease under Texas Property Code Chapter 92.
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Security Deposit definition
A security deposit is any advance of money, other than a rental application deposit or an advance payment of rent, that is intended primarily to secure performance under a residential lease. The label on the payment does not control. What the money is intended to secure does.
The landlord must refund the deposit no later than 30 days after the tenant surrenders the premises. The landlord may deduct for damages and charges the tenant owes under the lease, but not for normal wear and tear, and must give a written description and itemized list of deductions when any amount is withheld.
The refund and accounting duties are not enforceable until the tenant gives the landlord a written statement of the tenant's forwarding address. A landlord who retains a deposit in bad faith is liable for $100, three times the portion wrongfully withheld, and the tenant's reasonable attorney's fees.
Source basis
Definition checked against the official sources below on .
On the exam
Worked example
Worked example
A tenant moves out on March 1 and mails a written forwarding address on March 5. The landlord withholds $400 for a damaged door and must deliver the refund balance and an itemized list by March 31.
Exam trap
Tested in
Special Topics (Texas) (5 of 40 Texas State Law)
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Try 5 free questionsThis definition is Texas real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.