Security Deposit Agreement to Rent / Sale of property

[Robert Pflueger]

In California:

I put a down payment for a rental property security deposit as asked by the property owner to secure the rental and continue with section 8 housing inspection procedures. 

This was on 3/24/16 the deposit receipt says that we are willing and ready to move in by 4/1/16 they did not schedule the inspection until 4/4 had the inspection and it failed. They said it was minor outlet grounding issues and is supposed to be repaired today 4/9/16.

I got a call on 4/7/16 stating that they sold the property. and new owners want to live in the vacant downstairs that we already put a security on.

The property agent says that he will help me to find another property and that my money is available, and at the same time says that there is still a chance for the sale to fall through. I am upset and already feel like I've been mislead.

I have been forced to pay rent where we currently live because of this delay. I could be renting other properties, they are intentionally delaying the activity and our ability to move into this home to further their sale interests. I have a feeling that they took my money and would like nothing more than to wash their hands of our deposit liability by the sale of the home.. is this legal?

Also I found some negative reports on the Real Estate Board website regarding this real estate license, although they are currently licensed they have been suspended 3 time in the last 6 years. I read the accusation and it basically found them to be in violation based on audit findings of $35,000 of funds in trust unaccounted for.

In the security deposit and offer that we both signed and was drawn by me, it states that if prospective tenant backs out of the deal, $88 a day can be kept by the owner for 30 days for damages.  I did this to show my intent and assure our compliance to occupy the home. 

Doesn't that work both ways if my family has been ready to move since the first and they took our money in bad faith while at the same time listing this property for sale? 

Does the liability transfer to the new owners depending on the transfer of trust fund moneys in earnest through the sale? 

Can the new owners be made to honor the security agreement and be forced to allow us to occupy the home? No lease has been signed yet because the failed inspection. I feel like I have been taken advantage of and let down my family. With the market so tight in the bay area the only chance we have at securing a place is to put money down and hope the house passes. 

Any information or thoughts would be helpful. I realize that this forums is read by alot of landlords/owners and I know firsthand of what many property owners think about the housing choice voucher program and the people whom hold vouchers. 

This is our first time in the program and we have good credit and rental history for the past ten years. I have a decent job working for the State and was able to work overtime and save up enough to move my family closer to work, and into a bigger home to accommodate us all. Without this subsidy we could not afford this. Our plan is to utilize the self-sufficiency program to save for a down payment to buy our own home within 2 years or so. They have the savings match program and the mortgage voucher program as well. 

We have been on the list since 2007, and finally have the opportunity to move out of the crime ridden neighborhood we live in now send our 3 kids to a school rated more than rank 1 on the school rankings and be closer to my work saves me 2 hours a day in commute time to spend with my family. 

Thanks for any help.