deposit is refuntable if prospective tenant chance his mind in commercial leases?

In Leasing Property - Asked by James M. - Nov 18, 2014
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Answer(s)

Michael S.
Orlando, FL

Depends on how the deposit and lease document was structured but typically the deposit is NOT refundable.

Nov 18, 2014
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Dan B.
Owner/Investor
Muskegon, MI

no

Nov 18, 2014
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Michael P.
Broker/Agent
El Paso, TX

Probably not, but I would need more information to answer this question. And yes it depends on not only how the deal was structured and/or if you were only in Letter of Intent stages, as I know of some landlords that ask for a security deposit with the letter of intent but even a letter of intent is only "non-binding" if it states non-binding. I would suggest you ask an attorney to help you with this issue as it entails performance of a contract and enforcing that performance and the laws that govern all this vary from state to state.

Nov 19, 2014
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Justin N. A.
Broker/Agent
Midland Park, NJ

Unless it is specifically addressed and written into the lease. Once a lease is signed and a deposit is paid, the deposit will not be refunded. Again, unless this is something agreed upon between tenant and landlord (very, very rare)

Nov 25, 2014
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Margaret B.
Broker/Agent
Glen Ellyn, IL

If you already have a fully executed lease contract, then no. You can't change your mind After both parties have signed a contract then ask for your money back. Obviously your contract doesn't specify what happens to the deposit in this situation or the answer would be clear. Always hire a professional commercial real estate broker to work on your behalf and answer these questions for you.

Nov 26, 2014
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Korey J.
Broker/Agent
Alpharetta, GA

It would be unusual but it all goes back to the Lease Agreement and what each party agreed to in writing.

Dec 4, 2014
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