Is there any free resource that clearly states the rules/regulations for refunding a security deposit?

We rented a home and then found a home to buy. As part of the purchase agreement, the seller assumed our lease and agreed to pay the remaining rent (the rental place is not agreeing to attempt to fill it again). A walk-thru was done and nothing was found to be damaged (we only lived in it for one month). Now the rental people refuse to refund our deposit until the 8 months is up. They acknowledge the home is in perfect condition, but they don't think they have to refund it even though nobody else is living in the home.

How can I find out what my rights are?

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Originally Posted by KathiOH1

Is there any free resource that clearly states the rules/regulations for refunding a security deposit?

We rented a home and then found a home to buy. As part of the purchase agreement, the seller assumed our lease and agreed to pay the remaining rent (the rental place is not agreeing to attempt to fill it again). A walk-thru was done and nothing was found to be damaged (we only lived in it for one month). Now the rental people refuse to refund our deposit until the 8 months is up. They acknowledge the home is in perfect condition, but they don't think they have to refund it even though nobody else is living in the home.

How can I find out what my rights are?

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Any Tennessee Law that I can find refers to the refund of the security deposit following the expiration of the lease/rental, when the tenant vacates the unit.

I don't think you are entitled to the return until the lease actually expires and you no longer have any right to enter the unit.

What does your lease say?

Tennessee has no statutory time limits on the return of the deposit according to Rentlaw.com (Security Deposit Guide Security Deposit Law).

Plus you have an unusual situation here. Since your seller is covering your rental payments for the balance of the lease, the lease is still ongoing, therefore, the landlord could be within their rights to not return the deposit until the lease is up.

Even if the house is no longer occupied and the rental company said it was not going to move anyone in? I thought a security deposit was only for damage done to the property while occupying it? Inspection already concluded it was left in excellent condition.

In addition, we have a signed release of lease from the rental people. They had the seller sign a new one with them for the remaining 6 months. If we moved and left it in acceptable condition, were released from the lease, and no other party will be allowed to occupy the home, wouldn't that mean they have to refund the security deposit?

The Tennessee law that I found says that the landlord must perform a walk-thru of the property and make a list of damages within 10 business days after the termination of the tenant's occupancy. That means from the day the tenant moved out, not from the day the lease expires. Section 66-28-301 (b). According to the OP's first post, this was done.

The law further goes on to state that the landlord must send the tenant a written notice of the amount of the refund due the tenant and if the tenant does not respond within 60 days then the landlord is entitled to retain the deposit. Section 66-28-301 (f). It does not appear that this has been done.

I would file a lawsuit against the landlord for the return of the security deposit. The worst thing that can happen is that a judge will say that the tenant isn't entitled to the deposit yet.

Thanks, Lisa. That's very helpful.

I don't really want to file a lawsuit if I don't have to. I sent her a request for my money and referred to the section you pointed out. Since she doesn't usually rent, I'm trying this tactic first. I'm starting to think she doesn't have the money and didn't put it in escrow like she was supposed to. That's just a guess, though, by the comment "this will put me in financial hardship." Hope not.

The statue goes on to say that;

(c) No landlord shall be entitled to retain any portion of a security deposit if the security deposit was not deposited in a separate account as required by subsection (a) and if the final damage listing required by subsection (b) is not provided.

So if she didn't deposit the security in a separate account, she isn't entitled to keep any of it.

But there is a twist here. Even though you ended occupancy, the lease is being kept in force by the agreement with the seller. So it could be argued that occupancy hasn't ended. Whether a judge would go along with that. I don't know.