Legal Question in Real Estate Law in California

i'm in california, and a tenant signed a lease 5 weeks ago and tenant wants to back out now. They were suppose to move in on July 1st, 2011. What happens now? I've paid the 6% commission to the agents so I'm out that money too.


Asked on 5/31/11, 3:50 pm

2 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

You need to take steps to mitigate your damages. That involves trying to re-lease the property before July 1, or at least as soon as possible.

You also need to be sure that the tenant has finally and firmly breached, and is not just hemming and hawing. Get it in writing, or you may have two tenants instead of none.

I see no mention of a deposit. You would be entitled to deduct the agent's commission from the tenant's security deposit or first month's rent, if any received. If you didn't get a deposit, you may have learned an expensive lesson....get a security deposit next time, at the time you sign the lease.

I'm assuming the agents did their job properly, including a credit check of the tenant. Maybe you should inform the agents of the breach and ask about what checking they did on this proposed tenant.

For information about the "mitigation of damages" requirement, and on the taking of and accounting for security deposits, I recommend you buy and study one or two of those paperback books on landlord-tenant law such as "The California Landlord's Law Book" by Ralph Warner (Nolo Press).

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Answered on 5/31/11, 4:40 pm
Roy Hoffman Law Offices of Roy A. Hoffman

Generally when a valid lease exists and the tenant breaches the lease, the ladlord is entitled to all of the rent due for the term of the lease (i.e., if the lease is for one year and the tenant stops paying rent in month 3, the tenant will owe the full rent for the remaining 9 months of the lease), together with all other damages incurred by the landlord (the 6% commissions already paid and amounts paid to relet the premises). However, the landlord has an obligation to mitigate it's damages by reletting the premises. In order to enforce the lease you will need to either enter into some sort of settlement with the breaching tenant (which must be in writing to be enforceable), or filing a lawsuit to recover the amount due. If the amount is under $7,500.00 you can file a small claims action. If the amount is over $7,500.00, you will need to file either a limited or unlimited action in the Superior Court in your county, depending upon the amount in dispute.

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Answered on 5/31/11, 4:44 pm


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