Will a verbal rental agreement hold up in small claims court? I received a verbal agreement from a tenant to occupy offices 45 days in advance of their move in date. I waited for deposit monies to trickle in. Then I agreed to take the offices off the market, turning other possible renters away as money/verbal and written email confirmations came from this new tenant. My mistake is, I waited to sign a written lease. Tenant gave monies each week for office, we verified terms, lease length, deposit verbally. Tenant measured office space, ordered promotional materials etc.

We are separating ways, he wants a full refund, is it legal to keep a previously agreed upon verbal contracted monies, a month of rent based upon verbal contract? I can return the rest of the monies he gave for the deposit but feel its fair to keep the month he was contracted to occupy the office. Yes or No? State of Nebraska

What was any paper work signed ? An agreement, a depoisit receipt that says no refunds. In general the lease is not valid, since not signed. So they can not be held to the lease or any terms in the lease.

The issue will be the purpose of the payments and if they can be refunded.
What is any is that agreement?

You received some payments, correct? You have some proof you took the space off the market, correct? That should be enough if he sues you for the money you withheld.In the future, don't do anything without a paper trail.

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I can return the rest of the monies he gave for the deposit but feel its fair to keep the month he was contracted to occupy the office.

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It is unclear what the rest of the money is for. You accepted money for the first month's rent and other money as well?

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Originally Posted by AK lawyer

It is unclear what the rest of the money is for. You accepted money for the first month's rent and other money as well?

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Yes I collected for rent and deposit for one year lease

Nebraska has several "statutes of frauds" which may or may not apply.

"36-105. Contracts for lease or sale of lands; when void.
Every contract for the leasing for a longer period than one year, or for the sale of any lands, shall be void unless the contract or some note or memorandum thereof be in writing and signed by the party by whom the lease or sale is to be made."
It doesn't apply because the rental was for a period not longer than a year.

"36-106. Contracts for lease or sale of lands; specific performance.
Nothing contained in sections 36-103 to 36-106 shall be construed to abridge the powers of a court of equity to compel the specific performance of agreements in cases of part performance."

Again, it doesn't apply, because the you are not the one in breach of the contract.

And, the general statute of frauds doesn't apply:

"36-202. Agreements; writing required, when.
In the following cases every agreement shall be void, unless such agreement, or some note or memorandum thereof, be in writing, and subscribed by the party to be charged therewith: (1) Every agreement that, by its terms, is not to be performed within one year from the making thereof; (2) every special promise to answer for the debt, default, or misdoings of another person; (3) every agreement, promise or undertaking made upon consideration of marriage, except mutual promises to marry; (4) every special promise by an executor or administrator to answer damages out of his own estate; and (5) every agreement for the repurchase of corporate stocks, bonds or other securities."

So it looks to me that you could keep the first month's rent and the deposit.

Thank you, I so appreciate your input and direct common language to this issue. I go to small claims court this week. My ability to prove that I took the office off the market is my weakest link.

A simple call to the listing agent may bolster your position.