Language for app denial after holding deposit

[Joseph P.]

Hi all -

We recently met with a family for one of our apartments in NJ and took a partial deposit (less than 10%) from them prior to receiving any paperwork (shame on us). We really liked them and they kept assuring us that they would get us everything 'soon'. We expressed to them on several occasions that this needed to happen fast since we had multiple parties interested. Fast forward 3 days later and we still don't have official application or signed lease, but they have sent us an email with extensive questions regarding the lease that have raised the last red flag (including a lot of quotes regarding state laws). How do I legally tell them we are not moving forward with them and will be refunding their partial deposit?

Side note: We are new to the tenant screening and applicant process. We have several units but inherited most of the tenants from previous owners and the few times we've needed to find new people it has been word of mouth. I realize after this experience that we need to have a more formal process.