Q: Can I claim triple deposit for bad faith and lost wages in CA small claims court?

I rented a house from February 2019 to November 2024, and then purchased it for $120,000. My purchase option agreement from 2019-2020 stated that if I bought the house, I would receive 5% rent back, along with my deposit and last month's rent. The ex-landlord claims he owes me nothing. I sent a demand letter four months ago but received no response. I'm planning to take him to small claims court. Can I ask for triple the deposit due to bad faith, and for lost wages since taking time off work is challenging?

1 Lawyer Answer
James L. Arrasmith
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Answered

A: In California, you can pursue compensation for your security deposit and other unpaid amounts in small claims court. Under California Civil Code Section 1950.5, landlords must return security deposits within 21 days after a tenant moves out, or provide an itemized statement explaining any deductions. If a landlord wrongfully withholds a deposit, you may be entitled to claim up to twice the amount of the security deposit as damages for "bad faith" retention.

Regarding your specific situation with the purchase option agreement, the terms you described about receiving 5% rent back plus your deposit and last month's rent upon purchase should be enforceable if properly documented. Since you've already sent a demand letter and received no response, small claims court is an appropriate next step. You can claim the actual amounts owed to you based on your agreement, and potentially seek the additional damages if you can demonstrate bad faith.

As for lost wages, California small claims courts do generally allow you to claim compensation for time off work needed to attend court, though this is at the judge's discretion. Be prepared to document your hourly wage and the specific time lost. I recommend bringing all documentation including your lease, purchase option agreement, proof of payments, and copies of any communication with your landlord to support your case. Consider contacting a tenant rights organization in your area for additional guidance specific to your situation.

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