Legal Question in Landlord & Tenant Law in New York
Return (or not) of security deposit
I have apt. for rent in my house. This is a month-to-month rental as apt. is not classified as legal apt.
Party wants apt., gives security deposit to hold apt. I gave them receipt for deposit, no terms in writing, verbally told them purpsoe of security deposit to assure them the rental and protect me if they back out and leave me without a renter. A week before rental was to start they pull out. As they had backedout once before (before giving deposit), I verbally notified them that security deposit was to reserve apt for them, if they back out (again) this deposit may be lost, otherwise upon end of rental period, deposit will be returned unless they caused damage. They are suing in small claims court for return of deposit, int and expenses. Can I counterclaim based on my verbal terms re. return/non return of deposit?
2 Answers from Attorneys
Re: Return (or not) of security deposit
Since the apt. was not legal, most likely the Judge will order return of their deposit.
Re: Return (or not) of security deposit
No. If apartment was illegal, you had no right to accept money. Even if it was legal, most likely any agreement would have to be in writing. Save yourself a headache and return the money.
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