Legal Question in Real Estate Law in California
I recently applied for an apartment rental from a realty company. My application was accepted and my roommates informed me that to secure a spot, we would need to give the company at least $300 in the form of a cashier's check or money order. I then gave a money order to the apartment manager who then handed it to the realtors, who told us that the amount was not correct. The amount would have to be more. However, the deal fell through when my roommates and I discovered that we could not afford to pay the initial deposit and first month's rent. We called the realtor to find out if we could have the money order back, but we were told, only at that point, that the money order was non-refundable. The following day, I placed a stop-payment on the money order.
Therefore, my question is:
Were my actions in placing the stop-payment wrong in any way?
I would like to mention the following:
1) I was not told beforehand that the amount was non-refundable
2) I did not make any contractual obligations (as in a lease) with the realtor
3) I believe that through a series of prior miscommunications, that the realtor was shoddy in providing us with the correct amounts regarding the apartment rental
1 Answer from Attorneys
Well, stopping payment on a check - and I guess on a money order - is permissible when you have a bona fide dispute with the payee. If this actually went to litigation, you probably would win (70-80% likely) based on YOUR version of the facts and no input from the manager or real estate firm. However, if this never goes to court, and I hope it won't, you may be vulnerable to a negative credit report. I have no specific advice but please consider the foregoing in your future dealings with these people.
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