State Specific Question About: NEW JERSEY (NJ)

Hello all,

I have a property in NJ and I signed a lease with someone for an annual lease from 4/1/14-3/31/15. The lessee has wired the security deposit, but not the first month rent. Since then, I have decided to sell the unit after some consideration. I don't live in NJ and it's been very hard to handle property long distance.

Can I return the security deposit to the lessee and explain to him my intention to sell? Will I be sued for breaking the lease?

The tenant has not moved in.

I have no idea whether you will be sued, but your conduct would be actionable. You entered into a (presumably) legally binding contract and now you wish to breach that contract.

Maybe you can call your new tenat, explain the situation, and buy him out of the lease.

Wowser....that's a situation alright.

you signed a contract with someone and now, with a few days to go to start the tenancy you want to bail out.

When were they supposed to pay the first months rent?

Call your atty. and see what they say...and do it FAST!

someone out there is getting ready to move into your unit and you are trying to make them homeless.

Its going to cost you to get out of this if all is as you have written.

Your intent to sell has no impact on the lease if indeed it is in force, which it may be. If there is a contract, the person who buys the rental will be obliged to honor it.

However, if you don't want them moving in, I'd offer them a cash settlement to sign a release removing you from any future claim of damages. Try an amount equal to one month's rent plus $200 and also refund the security deposit and application fee. See what they say. I'd probably go as high as two full month's rent plus everything refunded to avoid the uncertainties of the courtroom where a judge rules your fate.

In NJ you have three days to cancel a contract. You send a certified letter to the other person on the contract. Hope you still have 3 days.

I would just go ahead and rent the property. It's easier to sell with a tenant in it because the buyer will be interested in cash flow. If it's a single family home, then maybe not.

Good luck.

You say that they paid the security deposit, but not the first months rent. Were they supposed to? If the rent is even one day late, then I would say you might have cause to break it. If the rent isn't due yet, and they put in the security deposit at stipulated, then you are legally bound to rent the place to them.

Obviously I am not from NJ, so take this for what it is worth.

I am familiar with the Law AllyM is referring to. It does not apply to certain contracts such as rental. I believe it is for the high pressure sales. However, if someone knows for 100% certainty that I am wrong, and we as LL have the option of evoking this, please let me know.

What was your agreement?

If the April rent was due with the security deposit and it was not sent - then the tenant failed to provide ALL funds that were required before move-in.

I don't let anyone move in or give the key until all rent and security deposit is paid up front and in full.

You probably could now disqualify the lessee because he failed to abide by the agreement - to pay all money due. In that case, I would return the security deposit based on the fact that the lessee did not comply with the terms of the lease.

I agree with Barbara -- this came up before and I did some research and also came to the conclusion that it did not apply to rental agreements like this. I didn't want to be the first to bring it up because I didn't want AllyM to think I was picking on her again. But I did want to say that I agree with Barbara now that she has pointed that out.

- John...