Legal Question in Landlord & Tenant Law in California
refund of a holding deposit
I was approved to move into a rental unit. I paid a deposit of one month�s rent to hold it. It was half cash and half check. I changed my mind later and was told that I would get a refund minus expenses for getting a new tenant and loss of rental income if it was vacant due to my cancellation. I also stopped payment on the check.
the landlord says she did not know that i stopped the check.
Now I am told that I am being charged for bounced check fees, days that the place was vacant, credit check expwenses and other bank fees for her account not having sufficient funds which she says now has eaten up the cash portion of my deposit.
is she under any obligation to return any of my deposit, since I bounced the check? Does she have a right to withhold from my deposit all the above expenses and bank fees from the bounced check? Does she have to account for these expenses with a response to me?
she tells me it is a nonrefundable deposit anyway, but i have nothing signed to that affect.
1 Answer from Attorneys
Re: refund of a holding deposit
I assume that you signed a lease, or some type of contract, to hold the rental unit. I can't answer your questions without referencing that document. If there was such an agreement, there is almost a 100% chance that your change of mind was covered (and not in your favor). Absent some kind of fraud by landlord, you would be bound by that. If no signed lease or agreement, you would be liable for expenses and reasonable bank fees caused by your action. It appears from your question that landlord's account was overdrawn. You might be responsible for some, or all, of those fees, but real question would be whether you informed her of stopped check in time for her to make adjustments in her checking account. Law isn't clear on this area, and you might try to negotiate a deal to pay some of these expenses. If she files a suit, win or lose, you are likely to have severe problems renting again, because it will affect your credit report. It might be worth the expenses of retaining an attorney to write a letter of negotiation on your behalf.
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