is it legal to have an applicant sign a lease and pay a deposit for a unit that is under construction

Asked on June 30, 2009 under Real Estate Law, Louisiana


MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

It depends.  This is a contract == so ultimately legal.  The issue is if there is a breach of contract that ultimately would amount to monies owed to one party.  This means that let's say a prospective tenant signs a lease and pays the deposit and the contract states a date from which he or she can begin occupancy.  Then let's say the tenant doesn't get to live there starting from that date because construction was delayed or halted.  Ultimately, the contract should state what damages could be collected.  If not, perhaps the landlord has to pay both for the delay and alternate housing.

Try and check his or her record at the LA State Bar if you need a lawyer.

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