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Commercial Landlord Cashed Check for Security Deposit but I have no written lease, is their a lease?


I want to expand my commercial space in the same building. The landlord told me I was going to get a lease soon. Its been a few months and I have not received anything. My last rent payment I sent an additional check labeled "earnest security deposit for addl space" he cashed it. Is there an enforeceable lease now in place?? Please help.

An agreement to rent real property generally must be in writing. There are two questions here. First, does your check serve as written evidence of an agreement and, if not, are there actions which would constitute an enforceable agreement without a writing.

The check which you sent was marked as "earnest security deposit for addl space." An earnest money deposit is generally tendered along with an offer to show that a prospective purchaser is serious about completing a transaction. On its face, an earnest deposit contemplates that additional steps are necessary to complete a transaction. In this case the landlord cashed the check. The question then becomes, were there additional contingencies necessary prior to a "meeting of the minds." Since you already had a lease for a portion of the premises, it seems that any additional lease would be on the same terms as the original. There is certainly a strong argument that there were no additional steps to be taken to constitute a valid agreement.

If the writing is not construed as sufficient evidence of the agreement, you may still argue that their was a valid enforceable agreement. In order to do this, you must show some type of reliance on the existence of the agreement to take it out of the statute of frauds. Did you take any reliance on the promises of the landlord?

You do not say why you are concerned at this point but, you at least have some argument that there is a valid enforceable contract.

there is intent and apparent consent but not necessarily enforceable terms best draw up your own lease if he won't and send it to him.

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