Check out some similar questions!

mobijay · Apr 9, 2007, 09:00 AM

Hi,

My roommate has a lease that is ending on August 31 2007. We all signed a Transfer of Tenant form for another person to take his place which we returned to the landlord. The Landlord made the new person responsible for paying the Security deposit to the tenant who is leaving. The new tenant signed an informal letter (between himself and the tenant who is leaving) agreeing to pay the Security Deposit on August 1 2007. I believe this is a mistake because the old tenant is not leaving till the 31 of August and can still damage the apartment.

Does the new tenant still have to pay on the 1st or can he wait until the old tenant leaves and does an apartment check before paying the Security Deposit?

Thanks

Emland · Apr 9, 2007, 09:07 AM

Originally Posted by mobijay

The Landlord made the new person responsible for paying the Security deposit to the tenant who is leaving.

Is that really what you meant to say. The new tenant is paying your roommate the security deposit?

mobijay · Apr 9, 2007, 09:11 AM

That is correct. The landlord has all of our Security Deposits in an Escrow account. They found it easier if the new person who was moving in would pay the Security Deposit to the tenant who is leaving.

excon · Apr 9, 2007, 09:27 AM

Hello m:

I think it IS a mistake. But the new tenant compounds it and puts his tenancy in jeopardy when, instead of getting the mistake corrected, takes matters into his own hands and results to self help.

He, they and everybody involved, needs to have their dates aligned.

excon

Emland · Apr 9, 2007, 09:33 AM

It may be easier, but doesn't sound legal. The existing roommate could possibly take the new tenant's security deposit then turn around and sue the landlord for return of the deposit because the landlord will not be able to prove that he returned the money to the original leaseholder. It sounds odd that the landlord even suggested it. It would make me wonder if the landlord had perhaps mishandled the security deposit and doesn't have it to return.

The whole thing sounds a bit odd. Do you know anyone in your area with real estate experience? So much depends on where you are.

mobijay · Apr 9, 2007, 09:35 AM

The landlord said the money was in an escrow account and they could not take it out. I do have a friend who is a landlord and I can ask him. Thank you for your advice. I live in Allston MA.

Emland · Apr 9, 2007, 09:36 AM

I consulted the term "transfer of tenant" in my resources and come up with nothing for US rental agreements. The only thing I can find is an Australian site. Does this help?

The ACT Registrar-General's Office - Office of Rental Bonds

If you are down under, please disregard anything I just said. My experience is all US (VA) based.

Emland · Apr 9, 2007, 09:38 AM

Originally Posted by mobijay

The landlord said the money was in an escrow account and they could not take it out. .

That doesn't make any sense. The escrow account is there to protect the money until the agreement is satisfied. If the transfer is good, why wouldn't they pay out?

Good luck. That landlord friend of yours will most likely answer the question best!

mobijay · Apr 9, 2007, 09:44 AM

In any case the informal but signed letter bounds that person legally to paying the amount specified?

ScottGem · Apr 9, 2007, 10:32 AM

My feeling is the landlord is just being lazy. Rather than getting a check from the new tenant and depsoting that in the escrow, withdrawing the old tenant's security and sending it to him, he figure it would be easier to just have the new guy give the money to the old one. If the old tenant turned around and sued the landlord for the deposit, the landlord would turn around and sue the new tenant for not abiding by the signed agreement.

I don't think there is anything illegal about it though.