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Roomate that hasnt signed lease but paid deposit/rent is backing out

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mommabear4

Junior Member
What is the name of your state (only U.S. law)? Utah

We had set up a home to move into our family upstairs and two roomates down in the finished basement apartment.

I went and signed the lease and gave the deposit for us, and our roomates (they had given me their cut, I was just delivering it so the unit would be "held" until our move in date.

Well one roommate changed is mind and wants his money back, what do we legally have to give him? No one has moved in yet (its in a few weeks) and he hasn't signed anything. It is all verbal with him so far. We will be on the hook for what he is not paying now (verbally he had agreed to a certain rent price monthly for the next year and 25% of all the utilities. We had been talking to him for over a month about all of this before the lease was signed by us and he gave us his money even! (first, last, deposit/holding fee, and application fee)
All the legal stuff I can find is about after move in, which really doesn't count for us yet. I have already started looking for another roommate but want to know legally what we are required to do?! Any sources you can give me are appreciated! :confused:
 


latigo

Senior Member
What is the name of your state (only U.S. law)? Utah

We had set up a home to move into our family upstairs and two roomates [sic] down in the finished basement apartment.

I went and signed the lease and gave the deposit for us, and our roomates [sic] (they had given me their cut, I was just delivering it so the unit would be "held" until our move in date.

Well one roommate changed is mind and wants his money back, what do we legally have to give him? No one has moved in yet (its in a few weeks) and he hasn't signed anything. It is all verbal with him so far. We will be on the hook for what he is not paying now (verbally he had agreed to a certain rent price monthly for the next year and 25% of all the utilities. We had been talking to him for over a month about all of this before the lease was signed by us and he gave us his money even! (first, last, deposit/holding fee, and application fee)
All the legal stuff I can find is about after move in, which really doesn't count for us yet. I have already started looking for another roommate but want to know legally what we are required to do?! Any sources you can give me are appreciated! :confused:
Only until all of the named parties are signatory to the proposed lease agreement would to be legally binding.

If not, then the only party obligated to make refund of the deposit would be the person to whom it was paid.
And that obligation might be affected by a number of things, not essential to your question.

However, in no instance are you personally liable to make restitution to the complaining individual who voluntarily advanced you the money for that specific purpose . He or she would be barred from making such a claim against you under the equitable doctrines of estoppel and the principles of the law of agency. If you desire a legal explanation, ask.
 

mommabear4

Junior Member
We would be though if he wanted to not move in. What does the landlord have to give back? I would be liabe for the difference :(
 

mommabear4

Junior Member
Wouldnt it technically be a "verbal" contract until signed? Part of the money was for them to hold the place until our move in date as well....
Are you saying I could back oyt and get all my money back as well since no contract was signed fully yet?
 

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