Legal Question in Real Estate Law in Georgia
Getting a deposit back when the lease has not been signed
I have a new tenant who was going to move in to the house I rent out, and they gave a deposit but have yet to sign the lease. They have now decided that they are not going to move in, and I am left with a mortgage to pay and no rent from them.
My question is since they have yet to sign the lease, can I legally keep the deposit (which was the amount of one month's rent)? Or since they have not signed the lease, do they have the right to getting their deposit back.
Thank you
1 Answer from Attorneys
It Depends
You did not tell me what was agreed to among all of you concerning the deposit if the potential tenant decided not to move in. You can keep the deposit, however, should the potential renter decide to sue you in small claims court, it will be a case of "he said, she said." Whether you have the right to keep the deposit largely depends on what you and the potential renter agreed would happened to that money in case the renter decides not to go through with the lease. For instance, if the renter had agreed that the renter would forfeit the deposit if the renter decided not to sign the lease after giving you the deposit, in that case you can keep the deposit.
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