Legal Question in Real Estate Law in Massachusetts

Re: Security Deposit follow-up

Paying money to someone by mistake is not a "gift." There is no intent to make a gift, and the person (company) making the mistake may request that the money be returned.

As in any situation when a creditor asks a debtor to return monies owed, if the debtor does not have the money, it will influence how vigorously the creditor might pursue the debtor, without altering the basic legal rights between the parties.

Re: Security Deposit follow-up

Unless property management company is authorized (by contract) to make "gifts" then the overpayment is an amount of money that they will be required to collect from the person who received the overpayment. The property management company will likely file suit to recover this amount since they are unlikely to be authorized to make gifts. Bankruptcy will discharge the debt... financial hardship (ie. "I already spent the money"), however, is not a defense recognized by the court, and neither is the "Well it was your mistake to give me the money" defense recognized.