Landlord & Tenant #1 has signed, Tenant #2 has not...

[Cameron Feldhaus]

I have a situation where two tenants (a couple, co-occupants) filled out an application for rent of a residential unit. After the couple’s application was approved, the lease agreement was then sent to the Landlord, Tenant #1 & Tenant #2. Keep in mind Tenant #1 & Tenant #2 are both co-occupants whom applied for the lease.

The Landlord and Tenant #1 electronically signed the lease agreement, however Tenant #2 still has not. Additionally, Tenant #1 sent the total move in balance of $5,000 and Landlord is in receipt of the funds.

This morning I received a text from Tenant #1 stating that they no longer wants the unit and they are requesting a refund in the amount of $5,000. As a reminder, Tenant #2 still has not signed the lease agreement. However, the Landlord and Tenant #1 has signed.

How would you respond to this situation? Is there a partial executed contract, considering Tenant #2 still hasn’t signed. Let me know how you would handle this.

Warmly.