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  1. #1
    Join Date
    Jun 2009

    Question Must Pay Deposit for Backing Out of Apartment

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

    I have a house for sale in Texas; someone put a contract on the house and I had about a month before the closing. A friend and I found an apartment and did the following (p/ their instructions):

    1. Gave them two separate checks for the application fee ($55 each)
    2. Gave them two separate checks for the deposit ($150 each)
    3. Gave them one check for the administrative fee ($175)

    We didn't sign the lease. We both remember them telling us that the deposit checks would be held and they would cash the application fee and the administrative fee.

    They cashed the application fee and deposit checks. That same day my bank called and say there was fraud on my account; they deposit check I gave them wasn't signed and they deposited anyway. My bank automatically returned the funds.

    The buyers who had the contract on my house weren't approved, so we had to back out on the apartment.

    Now the complex is requesting that $150 check from me AND a return check fee of $30 dollars.

    Do I need to pay that $150 dollars? I just feel odd paying a deposit on an apartment I won't be moving into!


  2. #2
    Join Date
    Sep 2005
    Behind a Desk

    Default Re: Must Pay Deposit for Backing Out of Apartment

    You gave them a check, you forgot to sign it, and as a result it was not honored by your bank? That would be your fault. That doesn't mean you necessarily owe the deposit, but it was not a fraud case.

    Why would they require a deposit check but not intend to deposit it?

    What does the written document you signed (if any) say about their cashing the deposit check, or what happens if you decide not to move in?

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