OK, I need some more advice. I just found an email from the leasing agent who approved the renter before we explicitly told her we approved.  I had told her we still had questions about wording of lease changes that the tenant wanted and would get back to her and then we would sign. She then informed the tenant (a lawyer) they were approved.  We told her we were rejecting them. We did not give a reason per advice from BP (another thread). 

Then she wrote us

----------"What is the reason for rejecting the application? I told them they were approved after reading Michelle's email this morning.

If denied, I need to send them an adverse action letter letting them know why"----------

Is this letter now necessary from us - her (?) as she told that they were approved before they were actually approved by us. If we have to say why, what can we say?

They have to be out of their home by the end of the month. He is a lawyer. They wanted to change the lease, such as putting deposits in escrow in case we had to sell and them not wanting to pay the $75.00 for repairs if they did not cause it to happen. There is more, but this seems to be the most relevant.  We did talk and agreed to their large dog, but later discovered it is NOT a good idea on a new engineered wood floor. 

I am concerned and almost afraid to say anything. Can we tell them our lawyer advised against this due to the tenant's changing the lease's wording (TX standard lease) by putting the deposits in escrow plus the large dog and the engineered wood floors would make it difficult for us to collect the deposit if there was damage.