I was needing to move from my home, so I contacted the lady I was renting from and asked her if she would allow me to break the lease. She said that was fine, but needed a 30 day notice. I gave her 45 days notice. I found a place closer to my work where I needed to be. They even contacted her for a reference. She waited until she knew I had found a place and was moving, and then sent me a letter in the mail stating she would not allow me out of the lease. Of course, this was too late, I was already in a new lease with the home I was moving into. I attempted to cotact her and work things out, but she refused to work with me. I realized I had never received a copy of the new lease I had signed in 2010. I went to her office to ask for a copy of the lease. It was at this time she realized she did not sign the lease. She immediately grebbed the lease and signed the lease back dating her signature 6 months. I got this on video with my cell phone. I found out that here in the state of TN the law is if a landlord fails to sign a lease, and accepts rent, the lease changes to a month to month tenacy. She still sued me for 6 months plus extra. I attempted a settlement offer. I know even though I felt as though I was in the right, I offered the money since I received my taxes and it was easier to pay and be done then fight this. They counter offered and I made another couter, however I am 400 dollars short of what the counter offer is. If they accept can I say they have my deposit which is 400 and give them the rest?

No, how the deposit is used is up to the LL not the tenant. Did you give her notice in writing? Have you actually moved yet? What was the settlement offer for?

Frankly, I would go to court on this. First she can't sue you for future rental. She has to try and rent the property to someone else. So if she goes to court and says she wants the balance of the lease the court will not grant it until the lease expires.

If you can show that you asked for permission and then she changed her mind after you gave notice, I think you will win.

Security deposits also follow state law but generally are due back within 30 days of the end of the term (or vacating if past term), and keeping any of it requires documented reasons with receipts. You aren't out of the lease yet, right? She can keep the deposit until you are. This could get murky if someone moves in while all this is going on, but you would need to know that and prove it. Since this is a negotiation now however, I see no reason why you shouldn't just include it in your counteroffer.

Are you sure you don't want to fight for the month to month on the technicality and on the verbal agreement.. You should have known you never break a lease verbally, but she was underhanded if this story is really how it all happened. Is the lawsuit done? Was this small claims and you are still in the pre-court stage of negotiating/resolving in writing?

We are still in the waiting for the trial period. Nothing has been finalized nor agreed on. The home was listed, and I even tried to find someone to rent the home. When they called to see it they were told the home was no longer available. As far as to why it is not available I do not know. I would love to fight it, but I cannot afford an attorney, and I am afraid of the cost if I lose. At least this way I can have some control on my losses if I were to lose. Yes this is exactly how it went. I fugured honesty was the only way to get an answer that I could depend on.

Hello n:

You came here for us to tell you the law. We did. You won't lose if you go to court. Now, if you want to GIVE her your hard earned money, that's something else.

She IS suing you in small claims court, isn't she?? You don't NEED a lawyer there... Just tell the judge what you told us. You'll WIN!

excon

I agree with ScottGemm, Joypulv, and excon. The story of the unsigned lease, the back-dated signature, and the entire thing recorded on you cell phone is classic. I think you should let a judge decide whether you owe anything.

Since your case depends on the law that "in the state of TN the law is if a landlord fails to sign a lease, and accepts rent, the lease changes to a month to month" tenancy, you had better have that cite handy:

"66-28-202. Effect of unsigned or undelivered agreement. —
(a) If the landlord does not sign a written rental agreement, acceptance of rent without reservation by the landlord binds the parties on a month to month tenancy.
..." Legal Resources (http://www.michie.com/tennessee/lpext.dll?f=templates&fn=main-h.htm&cp=tncode)