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Security Deposit Question

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Angel84

Member
What is the name of your state? Iowa

I have been renting a home since July 2018. I paid $2,000 security deposit. I just signed another lease that began July 2019. My landlord asked if I wanted to purchase the home, but I declined. He agreed to continue to rent until 2020. My husband lost his job at the end of July and I called my landlord and told him. He told me that he didn't expect us to continue to lease since he couldn't find work in Iowa and just asked that we continue to rent and stay in the house until he rented or sold the property. They put the house on the market 8/8/2019 and I staged the house to sell. The house sold on 8/11/2019 with closing on 9/26/2019. I paid our rent until 9/26/2019 and asked that he come to the house before we left for a walk through. I also asked if we could receive our security deposit at walk-through. His response was that we weren't going to receive our deposit back because we didn't rent through our lease term. There is nothing in writing as far as me telling him about my husband's job loss or if/when we are leaving. He told us the date of the house closing, but did not officially asked us to leave the house. Everything was amicable until the security deposit came into question. I have texts saying the house looked great and have pictures they posted online when they sold by owner. His wife also stated that we took better care of the house than they did. The landlord told me on the phone that he had costs to sell the house (he never even tried to re-rent it) and they had to make a few minor repairs per the house inspector for the sale and he is charging us for those and deducting it from the security deposit. He said he had to discuss it with his wife, but will not answer my emails. Any suggestions or information will be appreciated.
 


FarmerJ

Senior Member
so what does Iowa landlord and tenant state laws say as to the things a landlord can legally deduct from deposit funds ? ( are they allowed to deduct from the deposit only physical damages or does your states laws allow then to deduct other things that are not physical damage? ( look it up in your stae govt web pages for landlord and tenant.
 

FlyingRon

Senior Member
Yeah, march down to the courthouse and start a small claims action for the amount. Place a lis pendens on the property. That should wake him up.
 

Angel84

Member
My question is that if we are not paying our rent in full for the lease term to him, doesn't his sale of the property negate the lease to him seeing as it's changing ownership?
 

adjusterjack

Senior Member
My question is that if we are not paying our rent in full for the lease term to him, doesn't his sale of the property negate the lease to him seeing as it's changing ownership?
Absolutely yes. You owe him nothing after close of escrow except for any damage that you caused. If no damage, sue him in small claims court if he doesn't return the security deposit.

Understand, though that he has 30 days after 9/26 to do it. (562A.12.3) So you'll have to wait until he fails to comply.

https://www.legis.iowa.gov/DOCS/IACODE/1999/562A/12.html
I suggest you photograph every inch of the place inside and out before you leave incase he claims damage.
 

adjusterjack

Senior Member
Could you explain what the lis pendens would do? I tried to google it, but I did not fully understand.
A lis pendens is a public recorded notice that there is litigation in progress concerning the property. It can often make the property difficult to sell. It is not appropriate for a landlord tenant issue because it's not the property itself that's at issue, it's the contract between the to parties. A person recording a lis pendens wrongly can be sued for slander of title, tortious interference, maybe other stuff. It shouldn't be done just to "wake somebody up" because it can easily backfire.
 

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