Legal Question in Real Estate Law in California

Re: Tenant dispute with landlord over refund of security deposit

After some research in both the statutes and case law, I did not come up with a clear answer. My intuition tells me that if the landlord accepted the deposit from the two of you, he is entitled to issue a two-party check as your refund. You have a valid claim against the former roommate for his/her share of the rent, or at least some of it, but I don't think the landlord is legally obligated to take cognizance of this. Your conduct as a model tenant entitles the two of you to the full $2,000 refund, but doesn't increase your share above 50% as far as the landlord is concerned.

You could try to get the landlord to give you the entire $2,000 in exchange for your promise to indemnify the landlord against any future claim from the co-tenant. I assume such a claim is unlikely.

You must not succumb to the temptation to accept the two-party check and add the co-tenant's name along with your own endorsement. That is a felony and very probably the landlord would notice and report you.

You might ask your bank its policy on accepting two-party checks with only one endorsement. If you explain the circumstances there is some possibility it will accept the check.

I assume negotiating with the ex-roommate is not a realistic possibility (i.e. pointing out that he/she is liable to you for 1/2 the rent and you will release her/him if he/she will endorse the check).

If all else fails, you can file a suit in small claims naming both the landlord and the former roommate as defendants. The former roommate must be properly served, but 99% for sure will default by failing to appear. The judge can then enter a judgment declaring that you are the party entitled to the full $2,000 and the landlord will probably pay you without further ado. Get and read a small claims self-help book and/or talk to the county small claims adviser about how to write up your claims and serve the parties.

Perhaps some other LawGuru attorney will weigh in with a specific rule of law about two-party check refunds to co-tenants. I don't know of any.