Apartment suing for the $250 security deposit.

[CIA]

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

We were supposed to be moving into an apartment on June 1st, but found a more suitable place to sublease (until we close on our house). The day we were supposed to move in (at this point, no lease signed) because we were supposed to sign the lease on the day of move in, last minute I was called to go to CA because a family member had passed away and I had to help with the funeral arrangements etc..... I did contact my bank to stop the $250 security deposit from being cashed (I paid a fee for this), i called in time and therefore even though we did not move in, they were not able to cash it. I was so caught up in the funeral arrangements that I lost track to make a simple courtesy phone call to let them know that I was currently out of state and that we will not be moving in to the unit after all.

Now they are suing me for the $250 security deposit or they will report me to the credit bureaus.

I thought when you sign a lease that is when the unit it 'vacated' to you as a tenant. We only paid the application fee. So if you pay the application fee, does that mean 100% the apartment complex vacated the unit to you as a potential tenant?

 

[Antigone*]

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

We were supposed to be moving into an apartment on June 1st, but found a more suitable place to sublease (until we close on our house). The day we were supposed to move in (at this point, no lease signed) because we were supposed to sign the lease on the day of move in, last minute I was called to go to CA because a family member had passed away and I had to help with the funeral arrangements etc..... I did contact my bank to stop the $250 security deposit from being cashed (I paid a fee for this), i called in time and therefore even though we did not move in, they were not able to cash it. I was so caught up in the funeral arrangements that I lost track to make a simple courtesy phone call to let them know that I was currently out of state and that we will not be moving in to the unit after all.

Now they are suing me for the $250 security deposit or they will report me to the credit bureaus.

I thought when you sign a lease that is when the unit it 'vacated' to you as a tenant. We only paid the application fee. So if you pay the application fee, does that mean 100% the apartment complex vacated the unit to you as a potential tenant?

I suggest you make good on that check and include any fees their bank has charged them. You personal situation has no bearing on your contract with this landlord to move in. They took the unit off the market to accomodate you and have therefore suffered damages since you didn't hold up your end of the bargain.

 

[tranquility]

It is a bit more complex than one might think. But, rather than go through all the complexities, the only real theory I see (depending on what WAS signed) is a promissory estoppel. That is, the landlord reasonably relied on your promise to sign the lease on that date and that reliance caused damages. It's not a contract, but a quasi-contract. I mean, they WERE hurt. They could have continued to market the apartment and get a tenant if you hadn't acted as you did. Now, they have an empty apartment and they are trying to use the deposit amount as liquidated damages.

The problem(s) with that is liquidated damages have to be spelled out in a contract and it is unlikely your application fee agreement had such a provision, but I don't know about what you signed when you gave them the deposit. The second is the statute of frauds. How long was the lease? If longer than a year, the argument would be they could not "reasonably" rely on your promise without a signed writing. If a year or less, the TX statute of frauds does not apply and you may have a verbal contract. (Although that would be difficult to prove when they still required the condition of signing a lease.)

Rather than fight this in court, if the purported lease was for less than a year, I'd try to come to an agreement with them about how much they were hurt. $250 may be a good deal if it ends things. If the apartment was vacant for a month (or more), if they made a good faith attempt to rent it, you could potentially be liable for the full amount of the rent for the time vacant.

 

[CIA]

the unit at the time of putting in the application which was a Tuesday (May 28) was not move in ready, it was going to be move in ready on the day of move in Fri June 1st.

 

[CIA]

it was supposed to be a month-to-month, as we wait while we close on our house.

 

[Gail in Georgia]

"We were supposed to be moving into an apartment on June 1st, but found a more suitable place to sublease (until we close on our house). "

From your own posting, it appears you have little guilt about simply backing out of contracts.

Gail

 

[tranquility]

"We were supposed to be moving into an apartment on June 1st, but found a more suitable place to sublease (until we close on our house). "

From your own posting, it appears you have little guilt about simply backing out of contracts.

Gail

What contract was that? The one where he could live in a place without following the rules spelled out in a lease?

 

[Gail in Georgia]

" Originally Posted by Gail in Georgia
"We were supposed to be moving into an apartment on June 1st, but found a more suitable place to sublease (until we close on our house). "

From your own posting, it appears you have little guilt about simply backing out of contracts.

Gail
What contract was that? The one where he could live in a place without following the rules "


The one that says it's OK to hippity hop between apartments like bunnies on speed, stopping payment checks without the risk of financial repercussions.

Gail

 

[tranquility]

" Originally Posted by Gail in Georgia
"We were supposed to be moving into an apartment on June 1st, but found a more suitable place to sublease (until we close on our house). "

From your own posting, it appears you have little guilt about simply backing out of contracts.

Gail
What contract was that? The one where he could live in a place without following the rules "


The one that says it's OK to hippity hop between apartments like bunnies on speed, stopping payment checks without the risk of financial repercussions.

Gail

You're referring to the potential "quasi" contract the landlord might claim damages from his reasonable reliance on the OP's representation? Or, an actual contract where the landlord could claim the benefit of the bargain even though there is a purported condition of signing a lease and being held to its terms? (Which might cause problems for the reasonableness of the reliance for promissory estoppel.) You see, it makes a difference.

Hippity hopping is often allowed before a contract is formed often evidenced by the signing of a lease. And the financial repercussions of stopping payment of a check when no goods or services have been received is, what exactly?

 

[Zigner]

You're referring to the potential "quasi" contract the landlord might claim damages from his reasonable reliance on the OP's representation? Or, an actual contract where the landlord could claim the benefit of the bargain even though there is a purported condition of signing a lease and being held to its terms? (Which might cause problems for the reasonableness of the reliance for promissory estoppel.) You see, it makes a difference.

Hippity hopping is often allowed before a contract is formed often evidenced by the signing of a lease. And the financial repercussions of stopping payment of a check when no goods or services have been received is, what exactly?

One might argue that your position that no "services" were received would be fallacious. The apartment was made ready for their move-in based upon receipt of the deposit check. That is a service performed on their behalf.

 

[Gail in Georgia]

What I highlighted (and referred to) was the attached:

"We were supposed to be moving into an apartment on June 1st, but found a more suitable place to sublease (until we close on our house)"

with the emphasis on "supposed" suggesting that a lease was signed, they found a "more suitable" place to sublease and the day they were to move in on THAT rental property, skipped out on that one also.

Gail

 

[tranquility]

One might argue that your position that no "services" were received would be fallacious. The apartment was made ready for their move-in based upon receipt of the deposit check. That is a service performed on their behalf.

The OP *received* services? Do tell.

 

[tranquility]

What I highlighted (and referred to) was the attached:

"We were supposed to be moving into an apartment on June 1st, but found a more suitable place to sublease (until we close on our house)"

with the emphasis on "supposed" suggesting that a lease was signed, they found a "more suitable" place to sublease and the day they were to move in on THAT rental property, skipped out on that one also.

Gail

You forgot the next sentence where the OP clearly states no lease was signed.

 

[CIA]

What I highlighted (and referred to) was the attached:

"We were supposed to be moving into an apartment on June 1st, but found a more suitable place to sublease (until we close on our house)"

with the emphasis on "supposed" suggesting that a lease was signed, they found a "more suitable" place to sublease and the day they were to move in on THAT rental property, skipped out on that one also.

Gail

we did not sign the lease, we were supposed to sign on move in because the unit was not ready until the day of move in. does that make sense?

 

[CIA]

What I highlighted (and referred to) was the attached:

"We were supposed to be moving into an apartment on June 1st, but found a more suitable place to sublease (until we close on our house)"

with the emphasis on "supposed" suggesting that a lease was signed, they found a "more suitable" place to sublease and the day they were to move in on THAT rental property, skipped out on that one also.

Gail

where are you going with this? we are still in the sub lease place we chose over the apartment we originally applied for. we never bailed out on TWO places, just the one.