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Updated about 6 years ago on . Most recent reply

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Tenant Holding Deposit Laws if Backing Out

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Hi! Recently I saw a great house I loved, and after talking with the owner of the property put a holding deposit down ($250) so we could firm up a date, tentatively June 1, when the current tenants move out. After putting the holding deposit down I have discovered several sketchy things about the owner and want to back out. Sketchy Things are 1) She showed me the house WITHOUT alerting the current tenants that she was showing the house (I didn't know this at the time, but found out later). This makes me nervous she may just enter my home any time she pleases, and is either unfamiliar with the laws on a 24 hour notice, or just doesn't care). 2) I asked her to send me a copy of what the lease would be to look through and she sent me SOMEONE ELSE's LEASE, a current tenant, with all of his information on it, amount of rent, financial info, etc. Wasn't even blacked out, so fully giving up his privacy. 3) Discussed another tenant's credit issues with me explaining why he has to give more deposit because he has terrible credit, and she said this after giving me his name and info (this was also the guys lease she sent me over).

I am now super nervous that this person has no sense of personal privacy, and I don't want to have a landlord like this. I have NOT signed a lease, but did send a holding deposit of $250 to show interest, and hold the house. Several other people were interested (and still are) in the house, move in date would be June 1. Can I request my holding deposit back, or is it gone forever?

Located in Michigan!

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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
ModeratorReplied

I would demand it back and give your reasons why. If she refuses, you have to decide to pursue it through legal means or walk away.

  • Nathan Gesner
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