Put down deposit, reconsidered on lease (Boston, Cambridge: real estate, apartment, rentals)

[enkayes]

Hello all,

My girlfriend and I are moving to Boston. We put down $1300 bucks (month's rent) to hold an apartment for us. After our deposit was made, the realtor started tacking on additional fees and just started being generally shady. Needless to say, we are not comfortable with signing this lease.

We found a less expensive apartment two blocks away that includes utilities and is closer to the Orange Line. We want to back out of the apartment we already put the deposit down on, but want to make sure we have all our stuff together before proceeding.

1) First of all, is this even possible?

2) I'm assuming we cannot get the $1300 back, as this would be considered holding the apartment for October's rent. Is this true?

3) I've also read that if they can't place somebody by the next month (in our case, November) then the landlord can sue me for the remainder of the rent. Is that true?

I didn't sign anything but a form acknowledging that I cannot rent the apartment I was shown from anybody but the realtor so they can get their fee.

Any words of wisdom or personal experiences would be grand.

Thanks,

--Nick

[vogue]

I have never been in such situation--never heard of deposit to "hold" the apartment--you sign lease or you don't. First I would tell the agent you have found much better deal and you want out--hear what they got to say. If situation proves difficult there are some options. That fee might an illegal under Mass Law--I am not an expert, you might need one.
There is free help for tenants/would-be-tenants on Attorney General of MA Website/you can call them as well I believe. There are also free lawyers to consult which might be smartest option ( I have heard of group in Cambridge). Be quick--get all the info you have, make sure you talk to someone you can trust, if agent proves difficult (maybe they have a boss you can talk to). Make sure you are covered for identity theft, and also you can put stop pay on your check. Also, you can report shady dealings to Mass Assoc of Realtors--if truly shady--this agent could lose the license.
In the future be careful what you sign. Take some time to educate yourself. Some people are desperate around here!
I wish you all the best.

[ogre]

The state Attorney General's Office may be able to help answer these questions. Here is a link to a page from their Consumer Affairs Office: AGO Consumer Hotline and Mediation Services (http://www.mass.gov/?pageID=cagoterminal&L=3&L0=Home&L1=Consumer+Prote ction&L2=Complaints+%26+Mediation+Services&sid=Cag o&b=terminalcontent&f=consumer_hotline_mediation_s ervices&csid=Cago - broken link). There's a number on this page to a hotline for consumer questions.

Here are two links that may help with basic information:

http://www.mass.gov/Cago/docs/Consumer/Landlordnant073007.pdf (broken link)

Massachusetts Security Deposits.

The first link goes to the state Attorney General Office's website about landlord-tenant law. The second has some info about money paid up front, which may be useful in this case.

I've had some past legal issues with a landlord, so I'm somewhat familiar with landlord-tenant laws. I'm not sure whether it's legal for the landlord to collect a deposit to hold the apartment. I know that the only money a landlord may collect that won't be returned as soon as you move in includes first and last month's rent, a security deposit that may not be more than one month's rent, and the cost for any new locks and keys the landlord may provide.

I'm unsure, though, about whether it's legal for a landlord to collect some kind of deposit to hold the apartment, which is returned when you move in. The Attorney General's Office consumer hotline may be able to answer this question, since that's a basic yes-or-no question which should not vary with the circumstances.

As for the "extra fees" the landlord has been tacking on, this sounds fishy, but it probably depends on what exactly these fees are. There should be no extra fees for utility bills. Either the rental agreement calls for the tenant to pay for utilites, or the landlord does this. If it's the former arrangement, the tenant simply pays the bills, and there should be no money going to the landlord. If the latter, the cost of utilities should be included in the rent, not tacked on as something extra. The AG's consumer hotline may be able to answer questions about whether there are any additional fees a landlord may collect.

How easily you can get out of the agreement is probably another good question for the consumer hotline. As far as I'm aware, though, regardless of any paperwork you may have filled out, if you have not signed a lease, you can drop this landlord like the proverbial hot potato with no penalty. In that case, the only question is whether the deposit to hold the apartment was legal, which, again, would most likely be a good question for the consumer hotline.

[shiver]

The "deposit" is what will be applied to first month's rent once you sign the lease. What I'm not 100% sure of and is a question for the consumer hotline is if you change your mind about moving in and don't sign the lease, can the landlord keep the first month's rent as some sort of liquidated damages. I'm fairly certain they can't come after you for the rest of the rent since you're not in a lease.

What shady fees are coming up? The rental agent can charge you a fee up to one month's rent if you rent the apartment. That all should be disclosed before you put the deposit down. If there is some confusion, I would talk to the manager/owner of the agency you're dealing with. If there is some shadiness going on, I would look into 93A - it's MA's broad consumer protection statute.

[Valerie C]

Here are a couple of links that you might be able to get some answers with:
Tenants' Rights in Massachusetts: Private Housing - MassLegalHelp
Tenant Rights and Responsibilities (http://www.mass.gov/?pageID=ocaterminal&L=4&L0=Home&L1=Consumer&L2=Hou sing+Information&L3=Tenant+%26+Landlord&sid=Eoca&b =terminalcontent&f=tenants_rights_and_responsibili ties&csid=Eoca - broken link)
You can also google "tenants rights" to find more information, but the Mass Legal help might provide the answers you are looking for.

Hopefully you have a copy of EVERYTHING that the agent gave you, and of anything & everything that you signed. In response to vogue's post, be aware that not every real estate agent is a Realtor, but all agents are licensed through the state that they practice in. If there is some shady dealings going on, you would make a report to the Massachusetts Division of Professional Licensure (more on this page:Real Estate Brokers and Salespeople Consumer Fact Sheet (http://www.mass.gov/?pageID=ocaterminal&L=5&L0=Home&L1=Government&L2=O ur+Agencies+and+Divisions&L3=Division+of+Professio nal+Licensure&L4=Consumer+Fact+Sheets&sid=Eoca&b=t erminalcontent&f=dpl_consumer_factsheet_re&csid=Eo ca - broken link))

Best of luck with the whole thing--please let us know how things go!

Originally Posted by vogue

Also, you can report shady dealings to Mass Assoc of Realtors--if truly shady--this agent could lose the license.
In the future be careful what you sign. Take some time to educate yourself. Some people are desperate around here!
I wish you all the best.

[vogue]

Valerie C I do stand corrected. Thank you.

[capecodcathy]

As a former Realtor who dealt with rentals on behalf of landlords, the rental fee (up to one month's rent as previously stated) was paid by the landlord. Not the tenant. I'd definitely contact the AG's office and the MA Assoc of Realtors.

[shiver]

As a former Realtor who dealt with rentals on behalf of landlords, the rental fee (up to one month's rent as previously stated) was paid by the landlord. Not the tenant.

It's not required to be paid by the landlord. It's whoever agrees to pay it. In the Boston area, it can be either the landlord, the tenant or sometimes split by both. Often times, the landlord wants the tenant to pay the broker a fee so it's advertised as a "fee apartment." If the landlord can't get it rented, then he/she may change his mind and offer to pay the full fee or half fee as enticement to prospective tenants. Custom may be different in other parts of MA, but it's not unlawful for the tenant to pay the fee.

But, no matter what, the fee arrangement should be disclosed prior to the agent taking the potential tenant to see the apartment, or at the very least, before a deposit is taken. Otherwise, IMO, that's a 93A action. An agent can't take the deposit and then say, oh, FYI, you owe a full or half fee and by the way, you can't get your deposit back. If the agent mistakenly disclosed incorrect the fee info, the agent needs to take responsibility and not get paid or the potential tenant should have the option of backing out and getting his money back.