Legal Question in Real Estate Law in California
Landlord refusing to return deposit
Hi, My landlord is refusing to return my $2500 deposit. He informed me 2 weeks ago that since he is unable to pay his mortgage, that he is offering this home for short sale. (There's actually 3 rental properties that he's in danger of losing). He told me he had my deposit money in another account and that I would get 100% back. I have been accommodating with realtors as I have been searching for a new place. I found a new place and placed a deposit on it. I called to inform him I would be moving out on February 1 and he's trying to tell me that I can't move out until March. Our original lease was until August, but since the home is up for short sale and can be foreclosed at any moment, I don't find it fair that I can stay only until it is convenient for him. He says that he is going to keep my entire deposit, even though I have done minor work to improve the home, without charging him. It is in better condition now than when I moved in. Please help! Can I win a small claims case against him even though I don't have written documentation proving he told me he would give me my deposit back?
1 Answer from Attorneys
Re: Landlord refusing to return deposit
No. He can apply the deposit to outstanding rent and sue you for rent you owe for the term of the lease -- at least for as long as he is the owner.
There are laws being proposed that would prevent eviction solely because a property is being foreclosed. Nevertheless, you can communicate with the bank about remaining at the property even after foreclosure. Often, they will prefer that someone is there rather than let it lie vacant and be subject to destruction by vandals.