Tenant wants to break the lease agreement before moving in

3 years ago

Hi Sir/Madam,
My tenant and I (landlord) had the rental agreement signed on April 15th 2021 (through online portal - Leegality) and that the tenant moves in from May 1st . However due to some personal reasons, my tenant has decided not to move and break/cancel the agreement (on 26th April). I told my tenant that I would start looking for new tenants, and ready to cancel the agreement and also mentioned her that if someone agrees to move in before may 1st - then I would refund the entire security amount, otherwise it is proportional. Our notice period is for 2 months.
Now the tenant claims that I had to refund the entire security amount because she decided to cancel the agreement before the move in date.
I would request you to provide more details on what rights landlord and tenant have in this case. And what is the better solution to this issue

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Ankur Goel @ Complete Law Shield

Responded 2 years ago

A.I believe there was no lock-in period in agreement.

Who is she to decide to cancel agreement ?
dont do proportional.
2 months notice have to be served by her.
teach her how to cancel.

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Kishan Dutt Kalaskar

Responded 3 years ago

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A.Dear Sir,
The reasonable is you can deduct one month rent.

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Sidhaarth

Responded 3 years ago

A.Yes, the opinion of tenant for refund of full security money is correct. The agreement was to attain it's finality if tenant would have moved to tenanted premises but since prior to date if moving the tenant had terminated the agreement hence agreements condition was not fulfilled and thus agreement became cancelled prior to its implementation. Your are legally and morally bound to refund full security amount. The reason of withholding the security is malafide which may subject you prosecution. So it would be prudent on your part to refund the security amount to avoid complications.

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Ayantika Mondal @ Prime Legal

Responded 3 years ago

A.Dear Sir,
The return of security have to be done according to the agreement made between the parties. Still it is a right of tenant to take securities back. It is on your desecration to keep some amount and return the rest security.

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Anik

Responded 3 years ago

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A.Dear Sir,
The return of security will be according to the agreement signed. If there is no such clause mention in agreement then you might take some amount and return the maximum amount as they cancelled the agreement before due date and you still had time to find new tenants.

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Abishek Rajmohan

Responded 3 years ago

A.as the clause you have mentioned states 2 month notice period is to be served, technical/logically speaking you are entitled for 2 months rent considering she failed to give you 2 months notice after agreeing to the terms of the agreement (i.e having singed them), and for you have mentioned to her that if you find an alternate tenant who would move in before may 1st, only then would she entitled for refund the entire security amount, otherwise it is proportional.

You can deduct 2 months' rent from the deposit and return the remaining or wait till you find a new tenant, and then deduct a month's rent if you have faced any financial difficulty due her decision of not moving in as agreed upon.

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