Dear George: An Escrow Officer employed by a major title company in the Houston area told me that she did not care what Paragraph 18 of the Texas Real Estate Commission's contract form stated. She would require signatures from the buyer as well as the seller on the 'Termination of Contract and Release of Earnest Money Form.'

She also stated that she would require signatures of both brokers involved in the transaction on that same form. It is difficult for me to understand why such a well-known title company can blatantly defy rules that we think are binding upon everyone. Can you shed some light on this?" -- Broker

Dear Broker: Paragraph 18 provides that when only one party demands the earnest money the escrow agent "shall" notify the other party in writing. If the other party does not respond in writing within 30 days, the escrow agent "may" release the earnest money to the party making the demand.

Earlier in that same paragraph regarding the situation where both parties demand the earnest money, it states that the escrow agent "may" require a written release "...from all parties."

I hate to admit this since I served on the Texas Real Estate Broker-Lawyer Committee at TREC when this contract was adopted, but it appears that paragraph might not be entirely clear in both situations. However, I do agree with you. It is, in my opinion, incredibly bad judgment on the part of that escrow officer to make the statement you allege. Have you communicated with the CEO of that Title Company?

Dear George: "I recently moved from Austin, TX to Orlando, FL. It has been over 30 days. I have not received my security deposit from my landlord. Every time I call, they say they will call me right back. They don't call me back. What kind of action should I take?" -- Upset

Dear Upset: First, check your lease agreement. Make sure that you have complied with all the actions required of you in order to receive the return of your deposit. If you believe you have, then find out if a real estate licensee represented your landlord. If a licensee represented your landlord, then communicate with that licensee. If your landlord was leasing his or her own property, a licensee might not have represented the landlord. In either case, you may wish to first seek legal counsel. If you wish to give it one more try, however, send a written demand for return of your deposit. Send it by Certified Mail, Return Receipt Requested.

Dear George: "I own a condominium in a 120 unit complex in another state. Its management company repeatedly harasses my tenants. A member of the board of directors of the complex also owns the management firm. Unfounded fines continue to be levied against my unit. On six different occasions the local police department has been called out for "excessive noise." Their documented findings show no violation of any law or ordinance.

A letter I received from my attorney states in part, 'There is something going on here. It is not about noise. It is probably something else. Perhaps it is racial. I have not witnessed, in my career of 30 years, such an undercurrent of anger and hatred.' What can I do to assure my tenants the right to live in their home without further harassment? I am desperate." - Desperate

Dear Desperate: Have you asked your attorney about filing a Fair Housing Complaint with HUD? Check out, http://www.hud.gov/consum.cfm. Click on the "complaints" link in the lower left hand navigation bar. Follow the link from "Housing Discrimination."

Dear George: "What entity governs property management companies? I have had several problems with a Houston area firm. I believe this Texas Corporation uses unfair business practices. I would like to know with whom I could file a complaint." -- Complainant

Dear Complainant: The Texas Real Estate Commission ("TREC") is the state agency that handles complaints against real estate licensees. The firm you referenced in your email is a real estate licensee in Texas. Click on the "Complaints" tab at the top of the "splash page."

Dear George: "I have received 3 title searches made by a reputable law firm. I have signed 3 Deed of Trust agreements. I have signed 3 promissory notes. All 3 signings involved the same property located in North Carolina. When I got married an attorney told me I owned half the house. After my wife and I separated, my attorney informed me I did not own the house. My name was not on the Deed. Several attorneys say I do not own the house. A highly placed official with the bank commission says I do. Every real estate broker I've spoken to says I do. I have received too many conflicting 'expert' opinions. Do you have any suggestions?" -- Confused

Dear Confused: You should hire the services of a reputable attorney to represent you. When I say "hire," I mean pay for the attorney's services. The attorney should be licensed to practice law in North Carolina. I'm unclear as to how you obtained the numerous conflicting opinions regarding your ownership interest in the property. It is possible that yours is a more complex situation than usual. Even more reason to make sure the attorney giving you advice is bound to represent your best interests alone.

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George Stephens welcomes your questions by e-mail. Because of the volume of mail received, questions cannot be answered individually. Mr. Stephens is not a lawyer and this column does not contain legal advice. If you wish to obtain legal advice, please consult with an attorney or legal clinic.

Published: October 26, 2001

Use of this article without permission is a violation of federal copyright laws.

George C. Stephens, CRB is the Broker of deRaat Stephens, Inc. dba ERA Stephens Properties and the Director of Compliance for eRealty, Inc. Stephens served as 1998 Chairman of the 13,000+ member Houston Association of REALTORS® and is the Vice Chairman of HAR’s wholly owned subsidiary, e-Har, Inc. He is the 2001 Secretary/Treasurer of the 50,000+ member Texas Association of REALTORS® and TAR’s 2002 Chairman-Elect. Stephens holds a Texas Real Estate Broker license as well as a Texas Mortgage Broker License.