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?


Asked on 1/13/08, 2:17 pm

3 Answers from Attorneys

Robert F. Cohen Law Office of Robert F. Cohen

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.

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Answered on 1/13/08, 2:41 pm
Brad Lee Axelrod Law Offices of Brad Lee Axelrod

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.

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Answered on 1/13/08, 3:54 pm
Robert L. Bennett Law offices of Robert L. Bennett

Re: refund of deposit on rental

Follow the advice of Mr. Cohen and Mr. Axelrod.

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Answered on 1/19/08, 2:24 pm


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