Legal Question in Real Estate Law in California

Re: rental deposit check returned early

Sounds like a gift to me, given that the landlord isn't required to pay interest on a security deposit. If the explanation was in a separate writing, save it. If by notation on the check, make and save a copy.

I can't see how returning your deposit, with interest, and you accepting the same, causes you to waive any rights. It does seem to waive the landlords' right to complain, in the future, that you owe them a deposit.

It could be related to a pending sale, but that too seems unlikely. In a sale, there are two ways for the old and new owners to handle existing tenant deposits: #1, old owner refunds the deposit and new owner asks for a replacement deposit; and #2, old owner turns over money on deposit to new owner, and notifies tenants that this has been done. However, it would be unusual (and seemingly purposeless) for a selling landlord to use a phony reason for returning the deposit.

Another aspect is that a lease containing a deposit requirement, and specifying the dollar amount of the deposit, is prima facie evidence that such a deposit has been made; i.e., a kind of receipt. By refunding the deposit early without modifying the lease or having the tenant sign a receipt for it, the landlords could be leaving themselves open to a future demand for a deposit that was already refunded.

An unusual situation, but if you got any written explanation at all of the reasons for the refund, and the reason is satisfactory on the surface, I'd go ahead and cash the check, but keep the writing.

Re: rental deposit check returned early

No. And yes, it could mean that but it could well be just what they said.