Holding deposit debacle, any legal advice?

[suprarx7nut]

Hey guys ans gals, I have a situation. Thanks for any advice in advance!

A group of friends and I were interested in a house for rental. The owner (first time renter) and my group thought we had come to an agreement regarding lease terms. Unfortunately, the landlord did not have a final lease prepared, but presented a basic lease which we were completely fine with. She stated there would be a few small changes, but most would involve removing clauses from the lease.

So we put down a holding deposit (huge mistake on our part) of $1500. We then proceed over the next few days to argue profusely about the lease terms. She turned into a lying, manipulative maniac and changed the terms we thought we had agreed upon. After holding our ground and a days worth of arguing, she agreed to our terms, but at this point none of us trust her and would never give her another dime, for rent or otherwise.

So now she has $1500, which she states is non-refundable and forfeited by our choosing not to rent. The house was pulled off market for 4 days total. Monthly rent was to be $3100.

There was never a contract signed, only a simple receipt which doesn't even have:
her written name
the date
the address of the property
the holding terms and/or length.

Any advice on what to do next? The owner has been completely and utterly unprofessional and doesn't deserve a cent. She is flat out stealing this money in my eyes. She may deserve a few hundred for our sheer stupidity, but nowhere near $1500.

We may be threatening small claims court action if she doesn't respond to friendly, rational conversation.

-Andy

CLIFFS: put down $1500 Holding deposit on house. Landlord is a nut job, no contract was signed, just a receipt. Not planning on renting house after 4 days of arguing with landlord, any advice on getting the $1500 back?

 

[Fuzz420]

Just take her to court, if you lose atleast you tried. Goodluck

 

[Clint]

I myself have gone threw two horrible renting situations but mine where threw leasing company and both where foreclosures. I dont know how they do it in Colorado but in Arizona you should never give money until a contract is signed.

I really hate to say it but to me it sounds like you guys are out the $1500.00 unless maybe the when or if you guys go to small claims the judge see's it in your favor.

My only advice is to document every conversation with her threw either email or mail that way you have good documentation on it that way when your in court its not all he said she said.

Best of luck

 

[suprastanger507mgte]

small claims court. best bet before you throw in the towel.

 

[Mr.PFloyd]

This happened to me and 3 friends who were going to rent a house. our deposit was much smaller mind you, but we went to small claims court and won the case.
It's a verbal contract no matter which was you look at it.

 

[Neodeuccio]

Court. You gave her the money as a deposit based on a verbal agreement. Without a contract the transaction never technically took place. And as she did not say that the $1500 was non-refundable, she should legally have to return it.

 

[Justin]

Take her to court. Its really very easy.

 

[suprarx7nut]

I myself have gone threw two horrible renting situations but mine where threw leasing company and both where foreclosures. I dont know how they do it in Colorado but in Arizona you should never give money until a contract is signed.

I really hate to say it but to me it sounds like you guys are out the $1500.00 unless maybe the when or if you guys go to small claims the judge see's it in your favor.

My only advice is to document every conversation with her threw either email or mail that way you have good documentation on it that way when your in court its not all he said she said.

Best of luck

Ya, we'll be dealing only via email, snail mail or recorded phone calls from now on.

small claims court. best bet before you throw in the towel.

Yup, not giving her $1500 to take down and then post a craigslist ad without a fight.

This happened to me and 3 friends who were going to rent a house. our deposit was much smaller mind you, but we went to small claims court and won the case.
It's a verbal contract no matter which was you look at it.

Court. You gave her the money as a deposit based on a verbal agreement. Without a contract the transaction never technically took place. And as she did not say that the $1500 was non-refundable, she should legally have to return it.

Herein lies a part of our problem. On the half-assed, reciept, it states "non-refudable" holding deposit. We talked with the University lawyer and he said a simple receipt is not grounds for something to be completely non-refundable, especially when the terms and dates of the holding were never specified.

Take her to court. Its really very easy.

I hope so.


Thanks for the input guys.

 

[JASONA70]

I do manage my parent's property and I have a little experience with renting out houses.

How much was the rental agreement did you guys come to?

Was it an oral agreement that you would give a holding deposit or was it a written agreement?


example:


Blah blah blah holding deposit of $1500 until the date of ___________. The deposit will be refunded to the tenant once the amount of $3100.00 (or however much it was) + security deposit is paid off.


If the lessor CHANGED the amount of rent AFTER you signed the written contract then she has breached the contract. If that is the scenario you need to take her to small claims and show them that she has committed bait and switch http://en.wikipedia.org/wiki/Bait_and_switch. Meaning she told you the rental agreement would cost XXXX amount but then several days later she told you it was XXXX amount. If that is the case then the money rightfully belongs to you.

This really ticks me off that lessors would do this to tenants! I mean you didnt want to rent the house for whatever reason, she should give you back the deposit. Unless she straight out told you that you will not be refunded if you decided not to rent the house for what she originally agreeed to.

 

[JASONA70]

oh by the way, if she scribbled or marked ANYTHING on the lease agreement. The lease contract becomes VOID! she CAN NOT change anything on the lease agreement form after you have signed it.


How old are you guys? I suggest you guys take this to small claims. Present the case professionally and just tell the judge the truth. Do not yell at the other party while you are in court, just keep your cool and you are fine.


Not sure what the Colorado laws are but im sure its pretty similar to californias

 

[suprarx7nut]

The exact "receipt" is this:

receipt of
$1500 nonrefundable holding deposit
prorated first month's rent of $1[strike]6[/strike]700 +
last months rent of $3[strike]2[/strike]100 + rest of deposit
of $1600, totaling $6[strike]3[/strike]400 due on
July 10th. Move in date to be July 15.

Signed
ME Her (signature, but no printed name for her)




That is the receipt in full. That is the exact formatting and wording and spelling. There is nothing additional on the paper and it is written on the back of a blank rental application.

 

[JASONA70]

so she raised the rent AFTER you guys paid the deposit? If so you will have to take this to small claims and get your money back. If she did not raise the rent after you guys signed the contract, and just decided not to rent the property. You will have a hard time getting that money back. In any situation file for small claims and let the judge decide.

 

[suprarx7nut]

so she raised the rent AFTER you guys paid the deposit? If so you will have to take this to small claims and get your money back. If she did not raise the rent after you guys signed the contract, and just decided not to rent the property. You will have a hard time getting that money back. In any situation file for small claims and let the judge decide.

She had the receipt pre-written and then once we made it clear upon meeting with her that we would pay $3100 or we would walk, she crossed out the "2" in 3200 and wrote in a "1" making it $3100. The other cross outs were simple math errors on her part.

She raised rent prior to us signing anything, she just never got confirmation that we were ok with the upped rent. She just assumed it was ok when we said "we'll have to think about it".

 

[Poodles]

You can't modify a contract as they can't tell when the modification was done (before or after signing or with what intent), it would have to be re-written...

 

[JASONA70]

You can't modify a contract as they can't tell when the modification was done (before or after signing or with what intent), it would have to be re-written...

ding ding ding

This is the key to your success.

 

[suprarx7nut]

You can't modify a contract as they can't tell when the modification was done (before or after signing or with what intent), it would have to be re-written...

Cool. We were thinking that between the crossed out numbers, the missing date of signature, the missing printed name, the missing terms or definition of the holding deposit, we would stand a good chance in court.

We'll see. We just sent a nice email to her requesting we get most or all of it back. If she responds poorly to this one, the next email will be threatening legal action for the full $1500.

ding ding ding

This is the key to your success.

I hope so. :crosses fingers:

 

[LilMissMkIII]

Also, any changes should have been initialed by both parties.

 

[suprarx7nut]

well the "nice" email did not go over well at all.

She responded with a simple "please note the receipt signed by both parties for the $1500 nonrefundable holding deposit."

Looks like a legal threat is in order.

 

[Poodles]

Better threat would be a certified letter from a lawyer...

 

[Supraholics]

After holding our ground and a days worth of arguing, she agreed to our terms, but at this point none of us trust her and would never give her another dime, for rent or otherwise.

Perhaps I missed something, and regardless you should try to get your money back, however, the key point I highlighted on bold above is that you both have agreed to the terms and now you guys are backing out.

If it is the case, you loose your deposit. I could be 100% wrong, but just telling you what I know.

I have two apartments that I rent and in my 4 years of renting out to people I've signed a few leases and in any case is always clear, if you back out, you loose your deposit.

Wish you luck!

Miguel.