Verbal Rental Agreement

[TommyFrench]

Hi folks. I rented out my condo last week, at the beginning of the month to a guy who loved it so much he wrote me a check for 1st and last month rent plus a $1500 deposit on the spot. Rent is $1500 so the check was for $4500 total. Well, I had been trying to get ahold of him to give him the keys and such. I left a message but he never got back to me till today. He "changed his mind" after a week of me telling other callers the place was taken. I paid for a credit check on him, i had also paid for advertising that was now useless since I told every caller the place was taken. The check cleared and has been in my account for 7 days now. We had agreed on a year lease and we were went over all the details in person and shook on it. What am I supposed to do now? It is 2 weeks before Christmas and I am not likely to find another renter mid-month like this. What am I legally bound to return to this guy and what, if any, action can I take against him for breaking our 1 year lease? Please respond quickly because I need to figure out what I am obligated to do here. Thanks for your time.

 

[NYClex]

It depends on the law in your state.

Generally lease contracts have to be in writing to be enforced, , what we call to be "within the statute of frauds." Lately some states, for example New Jersey, have changed their statute of frauds laws to make exceptions for short term leases. Therefore it depends very much on where you live.

Then of course, one still would have to see if you had a valid contract or not. And even if it should have been within the statute of frauds, there are certain exceptions that might be applicable here, so that you might at least be entitled to one month's rent. But every state handles this differently.

If this problem isn't solved by renting the place to someone else you might have to consult a real estate attorney.

 

[TommyFrench]

I am in San Diego California, and we had a verbal agreement for a 1 year lease. Does that info help?

 

[mike]

I am in San Diego California, and we had a verbal agreement for a 1 year lease. Does that info help?

My guess is that a one year lease it would not be within the California statute of frauds because it could be performed within one year. The statute of frauds in most states (and in California) will render contracts for the sale of real estate and lease agreements of LONGER than 1 year to be unenforceable if not in writing.

It seems that the agreement may be enforceable but it becomes an exercise in proving that this one year agreement existed and what the terms were.