[RPPTL LandTen] Security Deposit Disputes

[Harry Heist]

A few years ago I sent this question but back again.

 

It is a REAL problem, a very common issue, and the answer is unclear. 

 

If a tenant disputes a full or partial claim on a security deposit, does the
property manager have to hold or can they just disburse the disputed amount
to the property owner and see if anyone sues?

 

I personally know a few FREC Commissioners and they refuse to give an
answer.  I have seen a judge say that they cannot disburse, I have seen a
case where the judge said they had to disburse.  (an owner sued the PM
company for the funds they were holding because they were scared to
disburse)

 

The whole purpose of the law change about 20 years ago was to remove the
requirement of interpleader or  litigation of EDO and FREC will NOT give an
EDO if the matter is sent to FREC on a security deposit claim.

 

What is your opinion on this?

 

This was added around 20 years ago to STOP the necessity of interpleader,
litigation or an EDO (Escrow disbursement order) but the question still is
up in the air.

 

(d)  Compliance with this section by an individual or business entity
authorized to conduct business in this state, including Florida-licensed
real estate brokers and sales associates, constitutes compliance with all
other relevant Florida Statutes pertaining to security deposits held
pursuant to a rental agreement or other landlord-tenant relationship.
Enforcement personnel shall look solely to this section to determine
compliance. This section prevails over any conflicting provisions in chapter
475 and in other sections of the Florida Statutes, and shall operate to
permit licensed real estate brokers to disburse security deposits and
deposit money without having to comply with the notice and settlement
procedures contained in s. 475.25(1)(d). 

 

When the law was changed, the ambiguity began.  While it is CLEAR that FREC
does not care now what the property manager (licensee) does, does the 15 day
dispute have any meaning now?  Is the property manager at risk if they
disburse? 

 

Opinions?   The way we advise our clients is simply that "we are not sure"

 

The bottom line question is this: "If the tenant disputes within 15 days,
NOW WHAT? 

 

Harry

 

LAW OFFICES OF 
HEIST, WEISSE & WOLK P.A.
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FAX: 1 800 367 9038
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Website:   <http://www.evict.com/> www.evict.com 
Email:  <mailto:harry at evict.com> harry at evict.com



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