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Can I, a landlord, revoke or rescind a signed rental agreement before a condition precedent (delivery of deposit) has occurred?
Anonymous4 views2 answers
I own a 3 bedroom condo, live in 1 bedroom & rent out the other 2.
I grew tired of 2 roommates, but wanted the same rent & neither was willing to pay the difference. So I gave them both notice of termination (both were month-to-month tenants).
I found a new tenant & we both signed his rental agreement. Move-in & commencement date is soon, December 1. The Security Deposit section of the agreement is:
"OWNER’S receipt of RENTER'S security deposit in the amount of ONE MONTH'S RENT, in the form of a money order, not a personal check nor cash, prior to move-in is a condition precedent to this Agreement’s becoming a valid binding contract."
He hasn't delivered a deposit. Now one of the old tenants WILL pay the difference & I'd rather keep him. Can I revoke/rescind the new rental agreement?
Michael Raymond DaymudeLitigation LawyerSherman Oaks, CA ·
This reads like a law school hypo test question. Assuming it is not, my non-legal advice is simply to immediately write the proposed new tenant and advise the room is no longer available. Quote the conditional language you have quoted here. You should write, and not call, because you have a written agreement.
You might find out the tenant is relieved. I think you have a good defense under the quoted language of the rental agreement. Even if not, I doubt the new proposed tenant could prove any damage. You might want to review the agreement further for any liquidated damage or other applicable provisions such as notice requirements. Good luck.
This is one of those questions where I have to answer it depends. If you are sure the potential tenant did not rely on the contract with you there is a pretty good chance there would be no damages.
I would write the potential tenant a letter informing him or her that the room is no longer available. Do not wait to do this as the closer you get to Dec. 1st the harder it will be for the potential tenant to find a place in time which could bring a defense of detrimental reliance.
As a side note courts are leaning more towards normal writing style versus the law school exam essay you gave.
Good luck.
