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Can I get a deposit I gave to hold a house for rent but changed my mind after 3 days?

I was interested in a house for rent and the owner said that if I give him a deposit (amounting to $3500) he would not show the house to anyone else. Move-in would have been in 2 weeks. But 3 days later, 2 people who I was supposed to rent the house with backed out. Of course, I could not cover the monthly rental anymore so I called the owner to tell him I wasn't renting. There was no lease agreement signed yet, but I had a stop payment put on the check. After explaining my whole situation to him, he is now demanding that I owe him $3500. Is he entitled to the whole amount? By the way, I live in California.

Public Comments

  1. Sounds like you gave him a "holding deposit"...which is non-refundable.
  2. I hope you realize a stop payment of that amount was a felony, he could easily press criminal charges against you. It is illegal to stop payment on a legitimate payment. He is entitled to 30 days rent, if the deposit exceeded that he has to refund the rest.
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