Tenant’s Rights When Lease Falls Through Before Signing

Security deposit refunds are often a matter of state law or even city ordinances.  As such, the rights conferred by security deposits (and rights to recover security deposits) vary greatly all over the United States.

Generally, however, if you give a security deposit for an apartment that you don’t ever take possession of or sign a lease for, then you are entitled to the entire deposit back.  The lessor, however, has the right to lease out the apartment until the moment a lease is signed.

Usually, until you have actually signed a lease, you do not have a lease. Virtually all residential leases are required to be in writing: this is especially important in this case.

Was there supposed to be a later signing, or did you understand there would be no other paperwork? It is possible you have a lease without signing, but it may be hard to prove.

If the landlord’s actions were discriminatory it could be relevant, but property owners have very protected rights and many unfair acts are still quite legal. Still, if the refusal was made on prohibited grounds, e.g., racial discrimination, national origin, marital status, etc, then you can sue in court, and the consequences could be severe.

This is difficult to prove, though. If you were denied a lease agreement by a landlord and were lied to (e.g. – they said someone else took the apartment when they in fact had no one else), then your options expand considerably. Consult with an attorney if you are unsure of your situation.

Sometimes the deposit may show the landlord “accepted” you as tenant. The receipt of a deposit may have created an agreement, but the agreement may only have limited rights, rather than being a full lease. You’re usually entitled to it back. Some landlords try to keep some, or even all, of a deposit. The key in court is what you agreed to, or what the agreement seems to be, to an objective, reasonable person.

It probably doesn’t matter whether the landlord called it a security deposit or a security agreement. The bottom line will be what kind of deposit a court can determine it is. Since you never took occupancy, the odds are it will be deemed a security deposit, designed to assure you’d move in. A security deposit in this case is meant only to “secure” the lease…and you’re entitled to all of it back since you did not take occupancy…especially if someone else immediately took possession, through no fault or deceit on your part.

Try to avoid going to court. But if there’s no other option, and the landlord is trying to keep your money, be prepared to present all the evidence you have.

For example, how was it communicated to you that the apartment was rented?

he more that was communicated in writing (including email messages or even text messages), the better. You should keep records of any phone conversations, including dates, times, and the content of each discussion. Be ready to show that you were ready and able to take possession of the apartment.

Case Studies: Tenant’s Rights When Lease Falls Through Before Signing

Case Study 1: Full Deposit Refund

John, a potential tenant, submitted a security deposit for an apartment but decided not to sign the lease after learning about certain clauses that raised concerns. Since John never took possession of the apartment or signed the lease, he is entitled to a full refund of his security deposit as per state law.

Case Study 2: Lease Agreement Dispute

Mary, a prospective tenant, was eager to move into an apartment and gave the landlord a security deposit. However, the landlord leased the apartment to another tenant before Mary could sign the lease. Mary was uncertain about her rights and consulted with a lawyer to understand if the landlord’s actions were lawful and if she had any legal recourse.

Case Study 3: Unclear Lease Agreement

Tom was excited to rent a house and provided a security deposit to the landlord. However, the lease agreement was never clearly discussed or signed. The landlord claimed that the deposit was non-refundable, leaving Tom puzzled about his rights and the validity of the agreement. Tom sought legal advice to ascertain the enforceability of the landlord’s claim.