any legal recourse here?

[GIacona]

What is the name of your state (only U.S. law)? NJ

A friend of mine who owns a 2 family home has decided to sell it last min. He is having a lot of financially difficuluty and has to sell it asap. However he decided to accept a security deposit of 1.5 months rent from a prospective tenant last month before he decided to sell.

Now unfortnaly he had to use the security deposit to pay last months mortgage. the tenant wants to move in sunday and apparently has a bed being deliverd. I told him to send a check to the tenant asap and just say you are selling the house.

I am sure if the tenant is smart enough they could issue a small claims court etc, but as long as he sends the check back plus there was nothing in writing such as a lease or anything he should be in the clear.

I know this is a last minute thing he will be notifying the teant. But can someone help me out here so I can advise my friend the best way to handle this without being sued. He is definatly not renting the apartment out there is a for sale sign going on the property this saturday. Hopefully he can just sell the home and not have any issue. I told him if the teant comes by not to answer the door, but he has to send the teants security deposit back to them asap.

Please help

 

[cm39]

Yeah, don't answer the door if the tenant comes by. That is great advice.

The more you antagonize the tenant (by never telling them there is no intention to rent to them, not answering their calls, and then putting a 'for sale' sign out the day before they intend to move in) the more likely they take action, whether or not they actually have legal recourse. If he tells the tenant right away, maybe the tenant can find another place and will not feel compelled to do anything legally.

Also, how does your friend intend to return the security deposit if he already had to use it to pay his mortgage?