Q: Signed lease, only paid reservation fee, never moved in & want to cancel, landlord says we need to pay until new tenancy
Only paid non-refundable reservation fee and non-refundable application fee. We never got keys, took possession of property, never paid any rent or security deposit. Called within 24 hours to let them know we don’t want to move in. Lease states, “first months rent & deposit due before commencement of lease. All money upon signing deemed reservation fee until actual occupancy, failure to take possession of unit will result in forfeiture of reservation fee.”
Landlord is stating we have to pay rent until a new tenant takes over lease even though we only paid reservation fee. Are they able to take action against us and do they have a standing?
A: The landlord is certainly "able" to take action against you and that may be a lawsuit. Whether the landlord succeeds in its claims, by lawsuit or otherwise, will depend on the Landlord proving by the preponderance of the evidence that he has a valid and enforceable claim for damages. You may have certain defenses. You may want to retain an attorney to give you formal advice if there is a lawsuit filed against you.
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