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Deposits on rental property
Ask George & Chuck

Deposits on rental property

George Stephens, CRB, and Charles J. "Chuck" Jacobus, JD | Advice columnists

Feb. 2, 2009

Dear George: Two days ago, a couple gave me a deposit on my rental house. My son, who recently attempted suicide, told me this morning that he wants to live in the house, and I want to help him. Am I legally allowed to return the deposit check to the couple? I haven't signed a lease with them or done any background or
credit check.

Answer: Just taking the deposit does not obligate you to accept the prospective tenants. The only wrinkle would be if you had a verbal agreement to lease them the house for one year or less; leases for longer than one year must be in writing. Since you mention that you haven't even asked them for information to perform credit and background checks, however, it seems such a verbal agreement is unlikely. Therefore, returning their check appears justifiable. Contact the couple immediately and return their check.

E-mail a question to ask George & Chuck or fax it to 713-978-6684. The answers to questions in this column do not contain legal advice. If you wish to obtain legal advice, you should consult your own attorney.

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