Is my security deposit gone if I back out of my lease?
03/20/2014 | Author: Legal Staff
On March 6, my girlfriend and I executed a residential lease for a home and submitted a deposit. The lease's commencement date is April 1. We gave notice on March 17 that we won't be moving in on April 1 because my girlfriend's employer has moved her transfer date to Oct. 1. Are we entitled to receive the deposit money back because the lease hadn't actually started yet?
The only way to get your entire security deposit back is for you to find a replacement tenant who is satisfactory to the landlord and who moves in by April 1. If the landlord finds a replacement tenant with the same conditions, he can deduct from the security deposit either a sum agreed to in the lease as a cancellation fee or actual expenses incurred by the landlord in securing the replacement tenant. If a satisfactory replacement tenant is not secured and moved in to the dwelling by the lease's commencement date, the landlord is entitled to retain the security deposit pursuant to the lease agreement between the landlord and tenant.
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Robin asks an interesting question. She doesn’t mention if she signed a ‘Hold on Property’ form when submitting the security deposit. this form is often made available by the landlord’s broker as part of the MLS listing. If not, I ask landlords to provide this form in exchange for the security deposit so that tenants can view the major terms of their lease agreement. The Hold form allows for a specific period of time during which the lease should be provided for signing. The new lease application form added a paragraph concerning Application Deposits. I would suggest Robin send a formal written request to landlord’s broker asap requesting refund of the security deposit funds. Brokers are usually very reasonable business people.
When you received the lease and read it, if you were not satisfied with the terms, did you call the Landlord or Property Manager for explanation or negotiation of the terms? They might have been “Open” to amending some of the terms before you cancelled the deal. “you were told Security Deposit would be refunded if you did not like the House”; it does not say anything about “not liking the Lease” (that could be negotiated”.)
We made a $1300 deposit to hold a home and submitted a $150.00 application fee. We received no receipt for the deposit and got the lease 8 days later on a Saturday. After reading the lease we were not satisfied and decided not to sign the lease agreement. I was verbally told I could get my deposit back if I did not want the house before I wired the deposit. Am I legally deserving of my full deposit returned to me?
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