Landlord found an other tenant after accepting a deposit and surrendering the keys! Can I sue for my fee?

Question

I'm in New York State. I found a tenant, ready, willing, and able to rent out an apartment from a landlord. He liked them so much, he himself gave a reduction in the rent! The landlord accepted their deposit. He then called me back demanding the full amount and making other excuses to cut the deal off. He then called me to tell me that he found other tenants. As a result, I lost my real-estate fee (one-month), and the tenants lost the apartment and are still looking. I want to know if I can sue him even though he didn't sign a lease with the tenants.

Answer 1

It sounds to me that a contract has been formed. The landlord offered his apartment for rent to you. You presented his offer to potential tenants. The landlord then changed his original offer, and replaced it with a new one which included a lower rent. The tenants then accepted this offer (which verbally specified a minimum deposit amount as a condition for acceptance, a monthly rental amount, the location of the dwelling, and any utilities and responsibilities that would hold in a temporary month-to-month agreement until the signing of the lease). Proof of this acceptance is in the form of the deposit they left with him.

The landlord is no attorney, and believe me when I tell you, the lease is nothing more than a new agreement between the landlord and tenant. When the landlord accepted the tenants, a month-to-month agreement was formed, pending a lease agreement in the near future. Nonetheless, a contract was formed.

You earned your real-estate fee at that moment. However, when the landlord called and demanded the full amount, the tenants were not obligated to pay unless the amount of rent was due for the month. Since there was no prior agreement, the rent was actually due at the end of the month, when the tenants would have used the space. Therefore, if he wants to make that kind of claim, he will sadly have little to stand on.

As a result of the landlord's breach of contract, the tenants were forced to look for an other place, and the real-estate office was not able to receive its fee. In addition, suppose the tenants find an other place, the landlord may be responsible to pay the difference between the rent he offered and they rent they are paying; for one month since there was no agreement, and the controlling agreement was month-to-month.

If I was the judge, I would award you your fee, to be paid by the landlord.

Answer 2

The landlord can be sued for a refund of the tenants deposit especially since there wasn't a lease signed. I am not sure about your real estate fee however but you could always as the clerk of the court and they can advise you.

Answer 3

He accepted a deposit 'in good faith' of tenancy. If he cannot present a valid reason that you or your client have breached or have not fulfilled the good faith he placed in you or them when he accepted the deposit, he is legally obliged to honour the faith that you placed in him when offering the deposit. He provided a receipt for the deposit and that is the contract of 'good faith'.

If you have some sort of real estate arbiter in your area, you should have the matter mediated by them.

Don't just go into bat for yourself on this matter, look after the interests of your clients and your benefits will follow.

.

Answer 4

In real estate, if it's not in writing, it never happened! Especially in NY.

Unless his reasons are discriminatory, you'll have to let the commission go. As far as the deposit, he'll have to return that to the prospective tenant.

Answer 5

Was your agreement an exclusive one?

If it was, then he owes you a fee no matter how he found the tenant.

Answer 6

You could take him to small claims court and it would be enforceable. Make sure you have the deposit receipt and you will win. Good luck.