security deposit questions. Any lawyers around? (apartment, rental market, insurance)

[banana1]

Okay here is the back story. I am moving out of my apartment, in which i share with a roommate. Our lease goes on for a few more months. We were working on getting him a roommate. One person inquired, saw the apt and wanted to apply through the management company. we asked for a security deposit to prove the applicant was serious and for us to take it off the market. When we applied for the applicant to be approved for the apt, this is the document they signed with me:


'Applicant name' has submitted a one month security deposit of $850.00 to 'leaving renter'. This will be held until Management Company has approved her for the apartment at 'apartment location'. If she is not approved, the security deposit will be returned in full. If she is approved, it will be cashed. She will get her security deposit back when she moves out of the apartment at the end of the lease."

This person also signed an application with the company that states:
In addition, I have submitted a non-refundable Application Deposit in the amount of $________, which is equal to one (1) month’s rent. This application deposit is made in consideration of 'Management Company’s taking the prospective leased premises off the rental market, and preparing the premises for my occupancy on or before _____________. Accordingly, if I do not take occupancy of the apartment after signing this application, I understand that I forfeit my Application Deposit. If Company denies my application, the application deposit will be refunded. Please be aware that if information necessary for the completion of the approval process is not provided by __________, Company reserves the right to deny the application. I also agree that at the signing of this application, my move-in date, if approved by management, is final and I will be responsible for rent beginning on the specified date. I understand that upon signing the written lease agreement, my Application Deposit will be applied towards my Security Deposit. I understand it is my sole responsibility to carry rental insurance for all of my personal property. I understand that with the exception of cleaning and painting the apartment will be rented as is. All agreements to: make any changes to the apartment, do additional repairs or upgrades, or to credit my account for any reason must be placed in writing and signed by myself and an authorized representative from company.

I do not think the blanks were filled out in the latter document.
So, the applicant was approved and was made aware. I then went out and put a security on a new apartment for myself, as I was now confident that the applicant would take over the apartment and the lease. Two days latter they tell me they do not want the apartment. They got a relative who is a lawyer to call me and say that they will file a lawsuit on me if I don't return the security deposit. Do I owe it back? I dont think so. No LEASE was signed.

[drive carephilly]

Originally Posted by banana1

No LEASE was signed.

If she never signed the lease, she's not interested in the apartment and she wants her money back . . .

Yeah, i'd say give her the money back now or deal with the consequences later.

[IAmEverywhere]

The other party has an attorney. You need one too, specifically one who specializes in landlord-tenant law. Once attorneys are involved, you don't want to rely on the advice of people who aren't attorneys.

As a practical matter, couldn't you just find another tenant?

[Goldblum57]

Legally, I'd say you are in the right. However, it's difficult for a nonlawyer to go up against a lawyer, especially with regard to landlord-tenant law.