Trying to Recover Deposit
This is in Iowa.
We recently completed tenancy at a property and are trying to get our full deposit back, as we left the premises in much better shape than we received them.
The lease was a home brew document, complete with two prohibited clauses (specifically, tenant pays landlord's legal cost in any dispute and landlord has arbitrary right to end the lease at any time, the former expressly prohibited by Iowa Uniform Residential Landlord and Tenant Act 562A.11).
The lease states that our pet deposit in nonrefundable, however, the landlord stated specifically prior to signing that the pet deposit was fully refundable. We didn't read the lease carefully, which was a huge mistake that will not be repeated.
My argument is based on believing that the entire lease is invalid due to the prohibited clauses and the absence of a severability clause, therefore we are due our full deposit less any valid claims by the landlord.
The lease clearly contains prohibited provisions. My question is if it is enough to invalidate the entire agreement? Or will the court choose to sever the prohibited provisions and enforce the remainder of the agreement?
In addressing unconscionability, the IURLTA states that the court may refuse to enforce an agreement, enforce the non-unconscionable parts of an agreement, or limit the application of an unconscionable provision. Would the court be likely to find the prohibited provisions unconscionable?
Re: Trying to Recover Deposit
I would not expect that a court will invalidate the entire lease, as opposed to striking the prohibited provisions. A non-refundable pet deposit would not be "unconscionable".
Re: Trying to Recover Deposit
I know the pet deposit wouldn't be considered unconscionable. That wasn't my question.
I was hoping the inclusion a of specifically prohibited clause–we're not talking 'could be argued' here, the code makes categorical mention of clauses of this type–with a few more very arguably prohibited clauses would tend to sway the court more towards voiding the entire document.
I can argue that at least a third of the lease should be thrown out and I think I would win on most of those points, especially if I can get the former landlord in front of a judge. As previously mentioned, this document has no severability clause. At what point do courts begin invalidating entire agreements instead of individual clauses?
Re: Trying to Recover Deposit
If you want an exposition on Iowa contracts law, I suggest you consult an Iowa lawyer or look for a state law treatise in the county law library.
You are free to try to convince a court that the entire contract should be set aside, and see what happens.
Re: Trying to Recover Deposit
Doubtful..almost every lease in every state I've seen has a clause at the end that says in effect if any clause herein is found to be invalid, the rest of the contract remains intact and enforceable.