Breaking a Lease signed lease, security deposit paid, breach of lease

[leaselucy]

Person signed a lease, gave me the security deposit, has not moved in the house, and now says they have changed their mind and don't want to lease house. Lease agreement states the following under the paragraph entitled SECURITY DEPOSIT: "TENANT AGREES TO PAY A SECURITY DEPOSIT TO SECURE THE TENANTS PLEDGE OF FULL COMPLIANCE WITH THE TERMS OF THIS AGREEMENT. THE SECURITY DEPOSIT WILL BE RETURNED TO THE TENANT ONLY UPON THE OCCURRENCE OF ALL OF THE FOLLOWING CONDITIONS; A. THE FULL TERM OF THIS AGREEMENT HAS BEEN COMPLETED". The terms of the lease are that the owner leases to the tenant for the period of one year unless sooner terminated according to provisions hereof. There are no conditions/provisions stated regarding breach of the lease. My question is this, am I required to return the security deposit under NC law. Also, how soon does the deposit have to be returned if I am required to do so.

 

[army judge]

Have BOTH of you signed the lease agreement?

Does the prospective tenant have a copy of the lease with your signature attached?

In any case, if I were you, I'd simply return the entire deposit to the prospective tenant.

It'll make your life easier.

Plus, if you retain the deposit as liquidated damages, your prospective tenant will likely whine about your unjust enrichment.

Simply, its always easier to not be the tough guy.

Here's the law in your state ab out security deposits.
Read it, please.
If you try to keep the deposit, you afford your prospective tenant certain claims he or she could make.

http://landlords.about.com/od/LegalIssues/a/North-Carolina-Security-Deposit-Law.htm

Bottom line, only a court can order you to return the deposit, insofar as I read the statute.

Good luck...