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  1. #1

    Default Returning Security Deposit Before We Even Move in

    My question involves a security deposit in the State of: California

    We gave a security deposit equal to one month's rent. We were going to move-in within 2 weeks but later, it was found out that there were gas leaks found in the unit and it would not pass inspection. So we were unable to move-in on the agreed upon date and have since changed our mind's about the place and this company entirely. They were also unable to install a refrigerator by the move-in date as they had said they would. The landlord's company has said they get to keep the deposit as a holding deposit but we have a receipt that states that it is a "security deposit." There is nothing that says the deposit is non-refundable. I feel that with the gas leaks, the place shouldn't have been on the market in the first place. I don't see how they could state that the deposit should be kept to cover for lost rental time, when there were gas leaks.

    Should we get our deposit back?

    I am aware of the laws regarding holding deposits, but this as stated on the receipt, is a security deposit.

  2. #2
    Join Date
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    Default Re: Returning Security Deposit Before We Even Move in

    If they won't return the deposit, you can sue in small claims court. A court will sort out the big issue - who broke the lease. From what you say I expect the court will find that they did, by not having the unit ready on the designated move-in day.

  3. #3

    Default Re: Returning Security Deposit Before We Even Move in

    We have since discovered that the unit was illegal in the first place and sent an inspector to prove such and have a copy of his reports saying the unit did not have the proper permits. I understand that under "Gruzen vs henry" the landlord is not entitled to collect rent under such conditions but does this apply to a "security deposit". We want to argue that since the place was illegal, they had no right to collect our security deposit in the first place.

  4. #4
    Join Date
    Nov 2007
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    Officially across the country from where I've been all my life
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    4,494

    Default Re: Returning Security Deposit Before We Even Move in

    You are correct, however, you need to sue in small claims court for the return of your deposit.

  5. #5

    Default Re: Returning Security Deposit Before We Even Move in

    Well we lost in small claims. I don't really see why. The landlord just threw out a ton of info that was mostly irrelevant to the case and I guess our point that this place was illegal to begin with, was lost. Maybe the judge didn't know the law that well but I feel totally discouraged. And since we're the plantiff, we can't appeal.

  6. #6

    Default Re: Returning Security Deposit Before We Even Move in

    Seems a familiar scenario happened in SC with myself recently. I gave first month's rent and security deposit only to find after the electricity was cut on a lot of hazardous problems, plumbing issues and ceiling leaks from rain. I was told by the landlord to 'prove' all the problems that I claimed wrong with the place, so I hired a home inspector because I'm not an expert. In the meanwhile the landlord has a crew show up and do renovation 101 on the kitchen to cover the mold that was evident and I needed to be moving in the home on the 1st of the month (not wait for them to waste time doing a renovation overhaul: cosmetic coverup means nothing compared to inoperable a/c and toilets that leaked and wobbled as well as plumbing in the walls leaking and loose). The home inspector said the home was not habitable. The problem was I signed an application that said the deposit (which I thought meant the application fee) was not refundable-no exceptions. So for court which was not conducted at all like I expected-I had to assume the role of 'lawyer' because the landlord wanted to conduct the small claims hearing in this manner-never of us had lawyers. It lasted 4 hours and I was at a complete loss because I thought the judge was supposed to ask the questions and ask for evidence and hear any support testimony from witnesses. I told the judge the landlord did not give me a reason within 30 days as to why he was not going to return my deposit (nor did he return the month's rent). The judge only awarded me the month's rent back because I was not able to move in on the 1st but not the deposit or reimbursement for having to hire an inspector to show proof the home was not habitable so I felt it should have never been available in the first place as a rental. I shouldn't have to tell a judge what the laws are either-I thought that was their job to be informed about these things.

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