You probably don't OWE any money back, but it is customary that when a deal breaks up, that each party give up half their interest as a settlement. many court rule that way, these days, because the courts don't want to get involved in the pettiness of the arguments. They prefer no-fault solutions. Whats important to them is that the deal fell through, so the details need to be wound up.

Why should ya ?

Because it sure beats a Brick through the Window

I am going to stick with our agreement. This is reason why I take the full deposit up front and repeatedly told them that it will not be refundable until we execute the lease on that date. Good thing I still have a month till the tenants move out.

Our agreement states,

understands “HOLD DEPOSIT” monies is a Non-refundable intent to rent fee for the property listed above and funds will be deposited into a deposit account serviced by an agent for Owner. The Intent to Rent Fee removes this property from public offering and holds the property for Applicant(s).

All parties understand this document is not a rental agreement and no possession is permitted until an entire rental agreement has been properly completed

As Vee said, then your Agreement is poorly written.

"Deposit" means something specific. There is no such thing as a "non-refundable deposit" as you are trying to do. You call it a "deposit" in one place and then later call it an "Intent to Rent FEE" -- WHICH is it? Fix your paperwork.

You should be collecting a Holding FEE -- and then you may right it that can later become the deposit when the lease is signed.

- John...

So just change the " Hold deposit" to Holding Fee?

I had a lovely 4 bedroom home for rent with the local schools being ranked #1 and #2 in the State. A professional women saw my rental after looking at a dozen others and decided to take it on the spot! It was going to be her, her soon-to-be husband and his two children. They had been looking for a home in the area because they were soon to be married and combine their households.

The women had enough income and fantastic credit that I signed a lease with her, only. It was going to be a surprise. My rental was perfect because it has three separate sections of the house that can be closed off from one another. This was on a Thursday. I got the lease singed and all of the move-in money paid in cash. I handed her the keys and removed the sign and cancelled the listing.

I then receive a phone call on Friday night. She had changed her mind. Her boyfriend saw the house and liked it but he said that he's getting back together with is wife for the sake of his kids. The women demanded her money back and said she left the keys on the kitchen counter, the house was secure.

I explained to the tenant that she has to give me 30 days written notice and I will try to mitigate damages and get the house rented asap. I had cancelled the ads and lot Saturday and it's now going to be harder to find someone. The tenant said, "MY FATHER IS AN ATTORNEY AND WE ARE GOING TO SUE YOU FOR ALL OF THE MONEY"!

I told her that I'm sorry about the situation, but I'm going to charge you for each day the house sit's empty from the 1st to the day the new lease begins. I'm also going to charge you for my advertising. I had two other applicants that I turned down who qualified for the home, but now found another place in the meantime.

So it took me two weeks to find another tenants and I gave the women half her first months rent back plus the deposit. On the check was printed "Full and final refund of unused rent plus deposit".

When her dad called me and treated me, I told him I guess that he wasn't a real estate attorney and didn't or wasn't familiar with the laws on rentals. I told him to read up on tenancy laws and leave me alone or I will sue him......

Anybody would like to share with me what their holding fee agreement looks like? Mine was a template I found online and I did altered it a bit.

I understand that upon the signing of this application I am agreeing to sign a lease if this application is accepted by_____, LLC.

I certify that I am of legal age and the information on this application is true and correct to the best of my knowledge. I hereby authorize __, LLC to verify all the above information and to obtain a consumer and/or investigative credit report and/or a criminal background check. I understand that the fee of $55 (per adult) for verifying this application is not a deposit or rent and will not be applied to the rent or refunded even if this application is declined.

Thank NC investor, that is very details.