If one writes a check for the security deposit to rent an apartment but does not sign a lease and then changes their mind about renting the apartment are they entitled to a complete refund?

Answer 1

Usually both the check for the security deposit and the signature on the lease are done at the same time. To hold the apartment for you, a deposit is often requested and paid. Depending on the timing (3 days? More?), you may get only a portion of the money back. The lesson is to be certain that this is the place for you before putting your money down. Do not pay in cash, get a receipt that states what the payment was for, and keep a copy of any money order or cashiers check that you used to make payment. Keeping records will pay off for you in the long run.

AnswerThis depends on some of the circumstances.

A "Contract" [in this case a Lease is one specific version of a contract, but there are many other versions] is a legally binding agreement between 2 or more parties, in which consideration is exchanged.

"Legally Binding" means that, generally speaking, each party to the agreement has every right to EXPECT the other party or parties to do their part... in other words, if I promise to mow your lawn in exchange for babysitting services, and I mow your lawn the way I am supposed to but you refuse to hold up your end of the bargain, I have the right to something called 'recourse,' which means I can force you to make the agreement good in some way.

A "Party" is one of the people, companies, or entities that enters into the agreement. A party can be an individual persion, or it can be a parent or guardian on behalf of a minor child, it can be a municipality, a company, an organization, a partnership, etc.

"Consideration" is a fancy term that refers to "something of value that is recognized by all parties." For example, if one were to purchase a liter of soda at a retail store, the liter of soda is consideration poffered by the store, and the monetary price is the consideration offered by the customer. If the soda is more valuable, then one would need to offer more money in order to enter into a "Verbal Contract" to purchase it, usually at a cashier station or possibly even at a vending machine.

A "Verbal Contract" is simply a contract that is not written in fancy legal terms on a really long piece of paper. In the above example, one could purchase a liter of soda from a convenience store without actually SPEAKING, but it is still considered a Verbal Contract because it was not written out beforehand. Note that verbal contracts usually but not always have a written receipt after the fact to serve as a record of the transaction.

When one looks to rent an apartment, the parties involved are the renter / tenant / resident / lessee, and the other party is the landlord / owner / lessor. The apartment or residence is OWNED by the landlord, but the consideration they offer [the thing that is of value to both parties] is USE AND ENJOYMENT of the residence, ie the right to live there and call it 'Home.' In return, the tenant or prospective tenant offers consideration in the form of a PROMISE TO PAY a certain amount of money on a periodic basis. Note, that the tenant is not offering MONEY, he or she is offering a PROMISE TO PAY. This tenant could theoretically move in and STOP PAYING, either intentionally or otherwise.

Because in most countries [particularly the United States] the law recognizes that someones HOME is much more important that someones SODA or JEWELRY, there are usually many laws that give the tenant a lot of advantages over the landlord in the event of a dispute. For example, if a tenant DEFAULTS [ie, fails to perform in any way, most often failing to make good on their promise to pay] the landlord cannot simply kick the tenant out right away and then rent out the place to another tenant with a short turnaround. Even if this WERE possible, the fact remains that the tenant is in control of the residence during an eviction proceeding, and could theoretically damage the walls or the structure, necessitating costly repairs to the residence in order to make it habitable for the next tenant that comes along.

For this and many many MANY other reasons, a residential eviction is a long, costly, and very risky procedure from the perspective of the landlord. For this reason, getting only a PROMISE to pay [instead of actually getting the money all at once] opens up the possibility of basically getting the short end of the stick. To offset and minimize this risk, most landlords request a SECURITY DEPOSIT to be offered up front in addition to a promise to pay.

A "Security Deposit" is an amount of money offered by the prospective lessee in order to 'secure' the landlord's risk in the event of a future problem. In other words, if the PROMISE TO PAY amount on an apartment is $1000.00 US per month for 12 months due on the first of the month, a pretty common practice is for the landlord to request to HOLD a security deposit of some multiple of $1000.00 US. Let's pretend in this example, that the security deposit is $2000.00 US. To move in, a tenant would need to come up with $3000.00 US before moving in... $2000.00 security deposit plus $1000.00 for the first month. That security deposit BELONGS to the tenant, because it is the TENANT'S MONEY. The landlord is simply holding onto it [usually in some form of something called 'escrow'] in the event that there is ever a problem.

For example, if the tenant has a 12 month lease on a property for $1000.00 a month with $2000.00 security deposit, and after living there for four months he or she becomes intoxicated and crashes their motor vehicle into the living room and causes $500.00 in damages, then the landlord can rest a little easier, knowing that instead of having to chase the tenant for the money to pay for the repairs, the landlord is already HOLDING $2000.00 security deposit -- the repair money is deducted from that deposit. When the tenant moves out after 12 months, if no other damage occurred and everything else goes hunky-dorey, then the tenant is entitled to a refund of $1500.00 undebited security deposit unless otherwise agreed to beforehand. Some variations on this include that some jurisdictions legally require residential landlords to also credit to the tenant interest on held security deposits, as if the tenants themselves were to put the money into a savings account instead of a landlord. Also, sometimes parties will agree to some or all of a security deposit being 'non-refundable,' which simply means that it won't be refunded no matter what. However, these variations are more often the exception than the rule.

Therefore, if no lease was signed, then in all likelihood the tenant that pays a security deposit, and does not pay first month's rent, and does not take possession of the apartment WOULD be entitled to a refund of their deposit under MOST COMMON CIRCUMSTANCES. Unfortunately, as is usually the case, entitlement and reality are sometimes different. One can be 'entitled' to a refund, but if dealing with an unreasonable person, forcing or 'compelling' a refund can be a whole ordeal unto itself. For mor information, consult an attorney or perhaps a civil servant of some kind. With only a competent and licensed attorney can give advice that you can legally rely on, sometimes there are other jurisdiction-specific remedies or resources available, and perhaps a police officer or court clerk would know where to seek this assistance out.

In closing, good luck, be careful who you give money to, and always get agreements in writing. When negotiating verbally, get a witness, or possibly get permission from all parties to record the conversation on videotape or audiotape.