Re: Intent to lease question - Landlord Forum thread

Re: Intent to lease question by Sara (Fl) on February 2, 2012 @19:21

"deposit of which half was "refundable if lease is not executed due to cancellation by landlord." This means if the landlord cancels the lease, the landlord can keep 1/2 the deposit? If this is what you mean, you need to refund the entire deposit at once. Such a 'clause' would never pass the sniff test with a judge. You will wind up paying more than the 1/2 the deposit when they sue you in court!

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Re: Intent to lease question by hoosier (Indiana) on February 2, 2012 @19:42	[ Reply ]

The tenants put down a total of $1000. $500 of that was a deposit that was "refundable if lease was not executed due to cancellation by the landlord." Since the tenant cancelled the contract I gave them $500, but kept the other $500 as per the agreement that they signed.

Re: Intent to lease question by Sara (Fl) on February 2, 2012 @20:00	[ Reply ]

You are saying that the landlord (you) can cancel the lease and keep $500 of tenants deposit. What keeps you from taking $1000 deposits and then cancelling the lease and keeping $500? This is what the judge will look at, you are able to cancel the lease and profit by keeping 1/2 of deposit due to your own actions. Doesn't seem right and probably would not seem right to a judge either. You should refund the entire deposit back asap.

Re: Intent to lease question by Anonymous on February 3, 2012 @09:25	[ Reply ]

Sara, it's obvious from a slow and careful readig of the sentence that if the LL cancels the lease, the depost is refundable. OP means that if the tenant cancels the lease the money in NOT refundable, but unfortunately OP has not clearly spelled out the situation in which the money is NOT refundable; OP has only clearly state when the money IS refundable, i.e., when the LL cancels the lease.

Re: Intent to lease question

Re: Intent to lease question by Anonymous on February 3, 2012 @03:02	[ Reply ]

Your wording is very confusing. You can risk keeping it but if they take you to court be prepared to pay them. Next time around make the wording more clear and do not offer 1/2 of the deposit back. Your wording may seem clear as pie to you but obviously it makes no sense to the rest of us. I make the security deposit a holding fee when they first sign. it states that if they cancel the holding fee is non-refundable since the house is taken off of the rental market. This secures you money while trying to re-rent it Once they move in and the lease is signed then the holding fee converts to their SD.