Here are few criteria to judge if your house is your Primary residence when you lived on it.

If this lady declares bankruptcy it can drag out for quite some time. 2) What is the condition of the property now?

In court, which might be coming if someone was going to lose 10k, I think you would want to appear to be the reasonable guy - "Look judge, I had $X in costs, which I agreed to carry for another 30 days, add on to the sales price, or even hold for a year outside of the process". 

Ultimately, it would have been up to a judge to determine the outcome, and we didn't want to pay legal fees to find out which way it would go. 

All contracts, options, or other devices not based upon a substantial consideration, or that are otherwise employed to permit an unlicensed person to sell, lease, or let real estate, the beneficial title to which has not, in good faith, passed to such party for a substantial consideration, are hereby declared void and ineffective in all cases, suits, or proceedings had or taken under this chapter; however, this section shall not apply to irrevocable gifts, to unconditional contracts to purchase, or to options based upon a substantial consideration actually paid and not subject to any agreements to return or right of return reserved.

If you have rented it for the last three years and have declared your earnings, depreciated, etc, this is a rental business. 

Originally posted by Account Closed:@Shal Patel Did you send someone out the next day to check the AC and if not the tenant can hold your feet to the fire in court and yes charge them the extra three-month rent and Texas judges don't play games if you want to take the gamble? 

Yes, though I'm a landlord, I believe you should bring the case to landlord tenant court.I watch Judge Judy several times a week where they have cases like this and landlords lose most of the time, They don't understand wear and tear and expect the place in "rent ready" condition rather than "broom clean".When I once rented an apartment, my landlord also held on to the deposit.

I can't stress to potential landlords interested in Section 8, to please not judge the book by it's cover.

The only change is with your homeowners insurance and your homestead declaration for property taxes.