Question about tenant issues – probably not appropriate here but I don’t have time to find an attorney?
May 24th, 2011 | 
Author: this is Chicago Il tenant landlord law. We looked at an apartment that is for rent, the landlord told us it would be available Oct 5th.
We did not sign a lease and did not definitely agree to take the unit. The landlord however told us that we had to pay a $100 application fee and give him a month’s rent to hold the apartment. We eventually decided we didn’t want the unit ( there were two murders in the immediate area last week). The landlord told us that there was a $300 cancellation fee plus in addition to the $100 application fee. We would also be charged a pro-rated amount for each day after Oct 1st that the unit did not rent. ( Which is curiously given that the unit won’t be ready until Oct 5th). We did not sign a lease and he has almost 30 days to find a replacement. Can he charge us $300 ++ ? We need to know soon before we look at another place
Thanks
Posted in Landlord Tenant Law
You cannot enforce a verbal contract. The landlord in this case appears to be out of luck.
Edit 1) By verbal contract, I specifically reference oral agreements, which under the statuate of frauds is most generally unenforcable. I believe that the “itchy brown eye” below may have misinterpereted my answer.
if the application specified the $300 + additional fees, you may be on the hook for it. Otherwise, he can’t hold you responsible for charges you did not agree to. It sounds like a scam to me.
*** to poster above me…you most certainly can enforce a verbal contract.
If you did not sign a lease than no, you are not responsible. He can’t enforce a contract you never entered into. property contracts have to be in writing for the exact reason that verbal contracts can be difficult to enforce. good luck
If he didn’t make you sign a contract, he cannot get any more money from you. However, he can keep what you already gave him. So he is entitled to keep the $100 fee, but if he asks for anything more, do not give it to him.
If you did not sign a lease, then you are fine. Did you give him any personal info, ie, name, address, ss#? As long as you did not tell him a certain, “hey yes we want it,” then you are fine. That was why you gave him the $100 app. fee. That is why he held it. HE CANNOT CHARGE YOU THE $300. Is there any form of written contract stating those things above, 30 days and the 300 dollar cancellation fee?? If there are, you may be required. I would not worry. At most, he would take you to small claims court, maybe put it on your credit, but that is unlikely because it would cost more than it would be worth. He bit himself in the bum when he told you it would not be ready after the 5th. You will be fine! Good Luck. Every state is different, I would go to the court house for your county, the county of where the potenial apartment was, and check for previous cases that are similar to your situation.