Do I legally have to return the security deposit?

Question

I built a new construction. I had a contract signed by tenants to move in on a certain day. We are unable to close on the home by that certain day. We will have to close one week later. The tenants were currently renting another home and had to be out by our closing date. We offered them 3 options of housing for a week until we closed on our home, but they will not accept any three of the options we provided. Do I have to give them their security deposit back?

Answer 1

What does it say in the contract you signed with the prospective tenants? It should clearly state what would happen if one or both parties are unable to live up to the terms. Otherwise, state law will apply (and it may still apply, even if there is something in the contract). Check with an attorney - the tenants may already have.

Answer 2

You almost answered your own question. I quote " I had a contract signed by tenants to move in on a CERTAIN day ". The word certain day got you! A contract is a legal and binding document. You could not fulfill your end regardless of the reason. Though I sympathize with you, the tenants do not have to accept any options given. Unless you made a specific clause in your contract as far as the date is concerned, you do owe the tenants their security deposit back.

Answer 3

It depends on the state where you live, but my experience says yes, you have to give it back - the security deposit is left for the tenant's benefit, to hold the property. It's not left for the landlord's benefit. Until they sign a lease they have the option to not take the property and thus should get the deposit back.

Answer 4

I'm a landlord. In fact I was just surfing for a minute while I print off a lease.

What did your lease/rental agreement say? If it is like mine, it stipulated the property and the dates. You weren't able to fulfil the contract. Although I am not a lawyer, I would think that you are legally and ethically required to return the deposit.

You didn't say (and it's not really my business) what options you offered, but if you are finding out now these prospective tennants are unreasonable, and all you are out is not keeping the deposit, then you are getting off cheap.

Answer 5

Since each state has different laws and your a landlord here's one for the files this site gives you all your right and the the tenants rights by law where you live.
So this also can come in handy down the road with future tenants.
http://www.uslandlord.com/ tenant screening to landlord chat rooms and much more...just go to Laws & Statutes and then your state.

Well if there's anything that ever puts you in a corner and you need to talk to an attorney and everyone knows how much they cost chat live right now http://www.lawyers.com/ they also can find someone local right on this site.

Answer 6

Yes. The security deposit is for physical damages resulting once they move into a unit that wouldn't be part of wear and tear. You can sue them in small claims for breach of contract but you may not keep the security deposit.

Answer 7

Ask a lawyer.

On the surface, it seems as if you made offers to help, which were turned down. However, if your contact states taht the deposit is forfeit should things not turn right, then you will have to abide by that.

Answer 8

in the initiating--be conscious ought to continually accept in writing...it ought to correctly be signed with suggestions from both activities, and also you need to save a duplicate for your self. Secondly--you need to continually go by the homestead with the owner, and make recognize issues that are incorrect once you flow in, and do this procedure back once you flow out. back, it ought to continually be signed with suggestions from both one among you and copied. i will claim that he's properly on one count number for optimistic--you need to be charged for partial employ because you probably did not supply an entire 30 days be conscious--that may recommend that technically you lived there for that better 5 days and could ought to pay for it. The threats ought to were written down--the owner had no properly to do any threatening--except you're merely which signifies that he stated that because of $x of damage and $x of unpaid employ, you owe him $x for those issues--which isn't a risk in any way, structure or variety. Why do you suspicion that he merely had 21 days to inform you? is this regulation in California? in the different case he probable has as a lot as a 12 months (or besides the reality that California regulation dictates) to grant you that notification--quite if he despatched you a invoice for structure/redesigning amenities carried out, because he does no longer have conventional the precise fee until eventually ending contact. If he spent that a lot on upkeep of the condominium, then you somewhat must have done an major volume of damage--in which case, sure, you'll likely ought to pay for it. and considering that you probably did not do an inspection earlier to flow-in, there is not any thanks to educate that you probably did not do this a lot damage. The cleansing fee is to be anticipated--it is quite unlikely that you receives out of that. in case you do a tremendous pastime of cleanup when you flow out, each and every in certain situations you could get out of the cleansing fee, yet commonly you could't. each and each and every of the guidelines about the prices and whatnot ought to be in the settlement--study by it back...(you probably did study by it previously you signed it properly???). Make notes and likely communicate it with a criminal specialist, yet better than likely you're in the incorrect. wish it seems okay!

Answer 9

what does your lease say about alternative housing? if you can not deliver the house on the date in the lease? if silent then since you could not deliver the unit on date within the lease your failure of performance gives them a way out, return SD

Answer 10

a deposit is for wear and tear and damages done to the home by the renters. deposit should be returned.