Are NJ landlords held liable for security deposit reporting?

Mr. Sizzle

Mr. Sizzle

New Member
Jurisdiction
New Jersey
1. The landlord must notify tenant of security deposit bank details within 30 days…if they do not, does it become the tenant's responsibility to request it?

2. Is there a "notice of cure" that needs to be supplied by tenant allowing LL time to produce the security deposit notification? Is that for 30 days or more/less?

3. Would this hold up if the tenant was NEVER given any notification (no name of bank, statement, annual interest payments or deductions, not notified when account holding funds was changed - nothing) from day one, through a 6-year tenancy?

4. Once the request for documentation is made - upon termination of lease - does that preclude the LL from their original responsibility of supplying this information 30 days after the lease was signed and 30 days if the account where held is changed?

Thanks so much. Insight would be very appreciated.What are the legal responsibilities of NJ landlords in reference to security deposit reporting?

I have a ton more questions regarding this situation and dispute with an NJ LL. plenty more to share.
 
Mr. Sizzle said:
What are the legal responsibilities of NJ landlords in reference to security deposit reporting?
Click to expand...

The answer to that question is contained in the NJ Security Deposit statute:

2013 New Jersey Revised Statutes :: Title 46 - PROPERTY :: Section 46:8-19 - Security deposits; investment, deposit, disposition

Mr. Sizzle said:
I have a ton more questions regarding this situation and dispute with an NJ LL. plenty more to share.
Click to expand...

Then please keep ALL of your questions in this thread. Don't start new threads for each question on what amounts to the same topic - your landlord tenant relationship. That gets annoying and discourages responses.

Before you post again I strongly suggest you study this NJ tenant's rights guide.

http://www.lsnjlaw.org/Publications/Pages/Manuals/TenantsRights.pdf

It's very comprehensive, well written and cites statutes that you can look up at:

2013 New Jersey Revised Statutes

When next you post (in this thread) please give us some background about your tenancy and about whatever issues you are having with the landlord and THEN ask your questions. You'll have a much better chance of getting helpful answers that way.
 
Thanks for your response and information. I have become very familiar with those statutes but some things do not remain clear as far as how they may be ruled upon in court.

Background:
My family lived at a SFH in NJ. We rented for 6+ years. In May 2015 LL starts pestering us all Summer about signing on for another year. We were going through a death in family, employment changes, etc. Told her we would like to end of August to let her know. LL wanted to raise rent and we decided we were going to move out. We had been on month-to-month since 2011 (signed document). We were looking, LL kept pestering - we said our intention was to stay through school year and would let her know.

August 21, 2015 the LL emails a lease extension document through June 2016. We do not sign or return the document. We are finalizing the documents for our new lease at another residence.

August 29, 2015 we sent email stating our position and that we would be moving out in 30 days. (Sidenote: in 2011 LL attempted to sell home while we were tenants. I got her to sign an agreement stating that, if the house sold she would give us 90-days notice for moving out.) When we say we are moving out LL invokes "90-day notice." I have the document and am fully aware that the 90-day notice does not apply to us giving her notice. I do not confirm or deny the 90-day notice, as my focus is packing up and moving out. On July 11, 2015 I had emailed LL and stated that "
We have no plans to go anywhere and if we do we will surely give you enough notice," know that on our month-to-month lease 30 days is notice required by NJ. The email notifying that we would be moving out contains the line "...we have come to the conclusion that we are simply not in a position to continue renting your home. We misspoke last week when we said that we would be able to extend until next June 2016." This is in reference to a conversation in which we told LL that we were figuring things out and we had hoped to stay but would have to get back to her.

After we move out, I contact the LL by email and explain that she has misunderstood the 90-day notice and supply her with the signed and dated document. I request the majority of my security deposit back. 30 days pass, no return of security deposit. An email from LL arrive approx. 43 days after we moved out. It states something to the effect of "everything in the house is damaged, needs repair, painting, cleaning, etc. You owe me thousands and thousands of dollars - I am going to sue you for $40K+." The listing of items includes things that were damaged when we moved in (I have photos) as well as replacing a 10 year old carpet, having the house cleaned and painted (which hasn't been done in 10yrs -2 tenants before us, as well), replacing light bulbs, etc.

I inform LL that I never received notification of my security deposit details 30 days after I moved in, hence questions 1-4 above. I am advised that no notice of security deposit in NJ means the tenant is entitled to 7% interest, making the deposit owed significantly larger. LL supplies bank statement for account (more than 30 days after request via email). I let the LL know about this as well as the fact that NJ doubles the security deposit if LL is found to have wrongly held it.

I would like to know how questions 1-4 are applied and held for LL. Documentation was supplied, but more than 30 days after my request. No annual notices of interest or of account were ever given.

There is more...most recently, LL ambushing my wife at her place of work (a public school) and shoving a document and check into her hand before taking off. The check is for $1000.00 which is followed by an email to explaining that the check is for settlement and some disparaging comments about me.

I am looking to understand what I am liable for here and wait the LL is liable for. Thanks.
 
On a month-to-month tenancy, would 30-days notice be sufficient based on B?:

2A:18-56. Proof of notice to quit prerequisite to judgment No judgment for possession in cases specified in paragraph "a." of section 2A:18-53 of this Title shall be ordered unless:

a. The tenancy, if a tenancy at will or from year to year, has been terminated by the giving of 3 months' notice to quit, which notice shall be deemed to be sufficient; or

b. The tenancy, if a tenancy from month to month, has been terminated by the giving of 1 month's notice to quit, which notice shall be deemed to be sufficient; or

c. The tenancy, if for a term other than at will, from year to year, or from month to month, has been terminated by the giving of one term's notice to quit, which notice shall be deemed to be sufficient; and d. It shall be shown to the satisfaction of the court by due proof that the notice herein required has been given. Amended by L.1975, c. 136, s. 1, eff. July 7, 1975
 
2A:18-56 does not address a notice "requirement." It's a rule of court procedure that eliminates the landlord's need to seek possession through the courts if certain notice has been made.

Further, that rule only applies in cases specified in 2A:18-53 (a) which excludes residential tenancies:

Rutgers School of Law - Newark: New Jersey Statutes

We have to look elsewhere for the termination notice requirement for residential tenancies.

That you went to a month to month agreement at the expiration of your lease is addressed by 46:8-10:

Rutgers School of Law - Newark: New Jersey Statutes

There doesn't appear to be a specific statute regarding termination of a month to month rental. In fact, the NJ guide refers to case decisions on Page 25.

I looked up both. According to S.D.G. v. Inventory Control Co:

"There is no statute prescribing the requirements of a tenant's notice to the landlord of its intention to terminate a month-to-month tenancy.1 Thus, the common-law rule requiring at least one month's notice to quit is applicable. See, e.g., Burns v. West America Corp., 137 N.J.Super. 442 (Cty.Ct. 1975). And see Hertzberg v. Siegel, 8 N.J.Super. 226 (App.Div. 1950); Hanks v. Workmaster, 75 N.J.L., 73-74 (Sup.Ct. 1907); Steffens v. Earl, 40 N.J.L. 128, 134 (Sup.Ct. 1878). And although our courts have not apparently been called upon to address the question, a recognized corollary of the common-law rule is the proposition that if the notice is given during the same month in which the quit is to take place, it will be effective as of the end of the month following the month in which the short notice was given. See 3A Thompson, Real Property, § 1355 at 673-674 (1981). Cf. Worthington v. Moreland Truck Co., 140 Wn. 528, 250 P. 30 (Sup.Ct. 1926)."

S.D.G. v. INVENTORY CONTROL CO. | Leagle.com.

Harry's Village, Inc v. Egg Harbor is more of the same:

HARRY'S VILLAGE, INC. v. EGG HARBOR TP. | Leagle.com.

The S.D.G case and the Harry's Village case are both commercial rentals but the previous cases (google them to read them) cited in S.D.G. include residential rentals.

You gave your one month notice on 8/29. If you paid the rent for September and moved out by the end of September you have met your common law obligation for notice of termination of a month to month rental.

If the landlord has failed to comply with the security deposit statute your option is to sue him in small claims court to recover any amounts you are entitled to.
 
Great information. Thank you.

How does this tie in with the LL's claim that we had an oral/verbal agreement and my stating that "...we have come to the conclusion that we are simply not in a position to continue renting your home. We misspoke last week when we said that we would be able to extend until next June 2016."

I recall saying we had hoped/intended to stay in town the through the school year but knowing that we were moving I never specifically said we would rent/lease/stay at her property. We received a signed lease extension from LL in late August. She signed but we never signed/executed. A few days later we gave her 30 days notice.
We gave credit reports and started signing documents for our new lease the week of Aug 21, 2015.
 
This is what I received from LL yesterday:


FOR SETTLEMENT ONLY.


You misunderstand how the law is implemented. (You also misunderstand my relationship with XXX XXX. He is my attorney to try to settle. He is not my litigator. )

I. Notice and Opportunity to Cure as interpreted by NJ Courts.

Notice and Opportunity to Cure requires you, the tenant to notify me in WRITING, that you have not received the information about the accounts. You need to have sent me a formal written request for the information. I , Landlord then have, 30 days to "cure" or fix the situation. (send you the information).


" The tenant has the right to require that the security deposit plus 7 percent per year be applied toward any RENT DUE. THIS REQUEST MUST BE MADE IN WRITING (by tenant… and it was not) However, after giving the landlord written notice THE TENANT MUST ALLOW THE LANDLORD 30 DAYS TO COMPLY WITH THE … notice requirements. "


From the case law…. "Where there has been a failure TO PROVIDE… ANNUAL NOTICE…, THE LANDLORD IS FIRST GIVEN THE OPPORTUNITY TO CURE THE DEFICIENCY BEFORE THE INVOLUNTARY APPLICATION OF THE SECURITY DEPOSIT TO THE RENT."…


Think about it… otherwise any tenant could say they never got the notice. The statute is interpreted such that, you need to have formally requested the information, and I need to have 30 days to fix. Once you requested the information about the security deposit, I sent you the information within the statutory 30 days. Nothing to discuss here. Please feel free to check with any attorney.


Lease Term. A verbal lease is binding. It is not subject to the Statute of Frauds.

"We misspoke last week when we said that we would be able to extend until next June 2016". This acknowledges that we have a lease until June 2016.

Again, please check with a good attorney…


The house is still empty despite lowering the rent again. This is a problem and represents a lot of difficulty and damages.

Finally, if you have any other questions, please send them along so that we can resolve. Silber believes that given that the house is empty and I am accruing more than $4,000 per month due to vacancy… my offer is exceedingly generous.

I will hold my offer open for a short while longer.
 
At this point, whether you sue or accept the settlement is up to you. There's no way to predict how a judge would rule on the oral communications or who proves what regarding damages to the property.
 
Obviously it cannot be predicted...I am trying to get an understanding on who has the proper legal standing with regards to the questions I posed. It is very hard to get answers without paying $250+/hour and even then, some I have spoken to are unfamiliar with the laws.
 
There's only so much I can do here. You appear to have met the termination notice requirements. Your landlord appears to have failed to comply with the security deposit statute. I think you have enough reference material to decide on whether you want to sue him. I have no idea what your landlord will say or present in court so I've gone as far as I can go.
 
Adjusterjack - do you agree or have a citing for this interpretation of "email as written notice?' I have tried to search this board but have not come up with anything.
Again - thanks for your responses and cites on my earlier questions.

email does not constitute valid notice unless: (a) you can prove that the person actually got it and read it, typically because they have admitted to it or responded to your email, (b) you have agreed with them in advance that emailing them qualifies as notice, or (c) less commonly, there is a statute on point that says that email notice is okay.
 
Additionally, in regard to the statute below, what happens to the funds (security + 7%) if the request and 30 days happen AFTER the tenant has moved out? Why, or how, would the tenant request those funds be applied to rent if they are no longer renting the property? Is there precedent for what happens to the funds at that point?

[In the event] If the person receiving a security deposit fails to invest or deposit the security money in the manner required under this section or [notify the tenant of the name and address of the investment company, State or federally chartered bank, savings bank or savings and loan association in which the deposit or investment of such security is made, and the amount thereof, within 30 days after receipt of same from the tenant, or within 30 days after the effective date of this 1990 amendatory act, whichever occurs later,] to provide the notice or pay the interest to the tenant as required under this subsection, the tenant may give written notice to [the] that person [receiving the same] that such security money plus an amount representing interest at the rate of seven percent per annum be applied on account of rent payment or payments due or to become due from the tenant, and thereafter the tenant shall be without obligation to make any further security deposit and the person receiving the money so deposited shall not be entitled to make further demand for a security deposit. 1 However, in the case of a failure by the person receiving the security deposit to pay the annual interest or to provide the annual notice at the time of the annual interest payment, if the annual notice is not also serving as a notice of change of account or institution, before the tenant may apply the security deposit plus interest on account of the rent payment or payments due or to become due on the part of the tenant, the tenant shall first give that person a written notice of his failure and shall allow that person 30 days from the mailing date or hand delivery of this notice to comply with the annual interest payment or annual notice, or both.1
 

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