Me and my wife visited an apartment on 04/13/2014 around 6 p.m. We hold the apartment by giving a $100 check. We agreed to look at the lease and sign it if we find it OK on 04/15/2014. I met landlord (on 04/15 - 7:30 p.m.) but did not sign the lease. Unfortunately (or you can call me dumb) out of goodwill I gave a security deposit cheque for 1.5 months because they came all the way expecting me to sign a lease. I was not expecting them to encash the cheque till they get a signed lease from me but they did on 04/16. We (me and my wife) decided not to take the apartment and informed the landlord on 04/17 - 11:30 a.m. I informed the landlord and he did not seem happy (which I can understand). Can I legally get my deposit back if the landlord decides not to give it back?

Lease is not to start before June 1st and there are still tenants living in the apartment.

Please reply, would really appreciate. Thank you!

What does goodwill have to do with business transactions?
You may never get the $100 'hold' back.
You may not get the 1.5 months back without suing in small claims. Tell them as calmly as possible that they have your $100 for their trouble and that you will sue if necessary for the large amount. Winning includes the filing fee of about $50.
Now you know. I don't understand handing over either amount. There should be a blank lease form available at the showing, and you decide then and there. In fact most landlords want to do a credit and reference check before signing a lease, and you don't give any money til APPROVED.

Legally, if you did not sign the lease and did not take possession, I doubt if they can hold the deposit. But you might have to sue to get it returned.

joypulv: Thank you joypulv. I agree, now I know good-will comes back hunting, business should be business I get it now. $100 was taken as a credi check / hold amount. I wrote them in the email that they can keep $100 for the inconvenience and that they should return the security deposit amount. I have the lease that they signed but I did not. I hope I don't have to go the "claims" way, but will surely do what needs to be done.

ScottGem: Thank you Scott. Yes, I have not signed the lease nor have I taken the possession. As I said, I hope not to go the "claims" way. I still don't get it why would they encash the security deposit cheque without having a signed lease in hand?

Will keep the thread updated.

Who knows why? It seems that he assumed that you wanted the apartment! Did you give him any indication that you weren't sure? Besides... again, you were so willing to hand over lots of money, that it is understandable that he assumed.

Quote:

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Originally Posted by daveshriks

... I still don't get it why would they encash the security deposit cheque without having a signed lease in hand?

...

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Because checks are a means of payment. You gave them money, and money should be deposited in a bank at the earliest opportunity. You never told them ot hold it. So why should they?

You indicate that what they did was to "encash" it. I assume this means (and by your spelling of "cheque", I assume you are in the UK rather than the US, where the word would be spelled "check") that they cashed it rather than depositing it, although I'm not sure if it makes any difference.

THe deposit (not a security deposit) in this case more like a please I'll pay this up front so nobody else grabs this unit, is payment you agreed to in order for them to keep the unit off the market until you can sign the lease... you backed out... why do you think you would be entitled to it back?

THat would have normally been creditied against the first months rent.

I fail to see where the Landlord is damaged, since the apartment is not vacant until June, I doubt that the apartment in that short period April 13-15 was taken off the market.

You probably will get your deposit back in 5-7 business days.