Legal Question in Landlord & Tenant Law in California
refund of deposit on rental
I signed a one year lease on a home to rent and put down a $400 deposit. The owners have lost the house to foreclosure. Am I entitled to a refund of the deposit?
3 Answers from Attorneys
Re: refund of deposit on rental
If you have vacated you are entitled to a refund.
You should contact the new and old owners and tell them about the security deposit, and advise them that once you vacate you expect to receive it back. You also might want to discuss with the new owners your continued tenancy, if that's your desire.
Re: refund of deposit on rental
The landlord is required to account for he security deposit within 21 days of your vacating the premises and returning possession. If a new owner has taken over, whether via a purchase or a foreclosure, the new owner has the responsibility to make sure any security deposits held by the previous owner are transferred in the escrow process (in a purchase). Notwithstanding the foreclosure, the best course of action would be to pursue the previous owner and the new owner via foreclosure in court if your security deposit is not returned or accounted for in a timely manner. California statute provides for a treble penalty for wrongfully/malicously withheld security deposits. You should make sure to provide a forwarding address or have your mail forwarded by the post office because if you do not or did not, the accounting can be sent to the last know address. In your case you can proceed, if warranted in small claims court as the amount you seek would be less than the $7,500.00 maximum for small claims.
Re: refund of deposit on rental
Follow the advice of Mr. Cohen and Mr. Axelrod.