Legal Question in Real Estate Law in Maryland
Tenant Quits Before Occupancy
I received $1000 as security deposit from a prospective tenant for my rental property on February 5, 1999. She said she intends to occupy the property beginning on the 15th of February. On the 12th, she asked for a postponement to the end of the month so that her tenancy would start on March 1, 1999. I agreed, and on February 20 1999 prepared and gave her a copy of lease to look over since she intended to use it for business. She called back on February 22 to state that she has changed her mind about the entire agreement and wants a full refund of the deposit. We only have an oral agreement with the intent to sign a lease at the end of February. All we have betwee us is a receipt with the address of the property and the amount of deposit. Is she entitled to full refund in the state of Maryland?
2 Answers from Attorneys
Re: Tenant Quits Before Occupancy
In general, in a commercial lease a landlord may be entitled to retain a secutiy deposit to compensate for the period of time the property was vacant. However, in this case it does not appear that you had a lease - only an agreement to come to terms later. Without a written agreement, any claim you have to the money would be diffuclt to prove at best. In the future, execute a WRITTEN lease at or before taking any security deposit.
Susan Zuhowski
The Law Offices of Susan Zuhowski, P.A.
P.O. Box 1466
Re: Tenant Quits Before Occupancy
Your position would be much stronger if you and she had something in writing at the time she gave you the deposit which spelled out its purpose. If its purpose was to secure the occupancy of the property for her and induced you to stop looking for other tenants, then you would be entitled to use the security deposit to defray any loss you have sustained if you turned down other prospective tenants. Generally, leases should be in writing in order to be court enforceable. Since you didn't execute a lease, you probably won't be able to enforce the lease or retain the deposit. Next time, have a lease executed when the deposit is tendered.
Robert Sher
Wagshal and Sher
5530 Wisconsin Ave-Suite 1200
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