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Fraud Issue done by people who wanted to shift to our Flat.
04-Mar-2025 (In Property Law)
3 people liked the our flat for rent. They paid 21000 deposit. rent was 10500. 14000 was spend in repairing the house. They told the rent They will give in will pay later. Agreement was done from our side. They were ready to shift. But suddenly they told that they want to continue in old flat in last moment. Home repairing work is done already done. We cannot return the security deposit as my mother has injury in thigh joint, I am not doing the job. We are facing financial issues.
You can retain the security deposit based on the breach of agreement by the tenants. Since they decided not to move in after committing, you can argue that the repair costs and time spent on preparing the flat justify retaining the deposit. However, ensure you provide a detailed account of expenses, including the repair costs. If necessary, send them a legal notice to resolve the issue amicably, or file a claim in small claims court for breach of contract.
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Adv. Ranabir Datta
Pune | 100+ Answers
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Following are the suggestions based on your enquiry:
Negotiate – Try to settle with the tenants by explaining the incurred expenses.
Send a Legal Notice – A lawyer can draft a notice stating your right to retain part of the deposit due to their last-minute cancellation.
File a Case – If they take legal action against you, you can counterclaim for losses incurred.
You can approach the Small Causes Court (Rent Court) in Maharashtra to claim compensation for your financial losses.
Under the Indian Contract Act, 1872, you can claim damages due to their non-performance of the contract.
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Adv. Praveen Anand
Nagpur | 25+ Answers
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Dear client, based on your enquiry I have few questions which need a clarification-
Two important questions-
1.whether they have paid you the rent through online mode or cash?
2.Was any MOU made between you and them?
My team will contact you as this matter needs a detailed discussion.
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Adv. Kalpana Sanap
Pune | 200+ Answers
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Since an agreement was made and you spent money on repairs based on their commitment, they cannot back out at the last moment without consequences. If there was a formal rental agreement or any written communication regarding their intent to rent, you may have legal grounds to retain a portion of the deposit for incurred expenses.
However, laws regarding security deposits vary by jurisdiction. Typically, a landlord can deduct repair costs or losses due to a tenant backing out but must return the remaining amount. If the entire deposit is non-refundable or already spent on improvements based on their commitment, you may need to explain and negotiate a fair settlement.
If they insist on a full refund, you can consider legal mediation or a written settlement agreement. You may also check local tenancy laws to understand your rights regarding security deposits and advance payments.
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Adv. Vikrant C Deshpande
Mumbai | 5+ Answers
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Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.
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