Raza
The tenants need to complete what is called an Order to Show Cause to claim issues associated with the property. To make the defense though they would need to deposit all back rent owed.
Now you can do a couple of things (I am not a lawyer so consult your own) as a manager that I have done:
1. Buy them out: Offer them money from their security deposit to move out and close up the issue and not pursue them for bad check law.
2. Keep the eviction process going and advise them that your attorney will charge them civilly, and potential criminally for writing a fraudulent check is a major crime. In NJ, the bad check law falls under the following statue:
N.J.S.A 2C:21-5. Bad checks Statute
2C:21-5. A person who issues or passes a check or similar sight order for the payment of money, knowing that it will not be honored by the drawee, commits an offense as provided for in subsection c. of this section.
The penalties associated with bad check is a follows:
1. CIVIL- Face amount of the check, attorney fees, court costs, costs of mailing a demand for payment, and damages in an amount equal to $100.00 or triple the amount of the check, whichever is greater, but not to exceed $500.00.
2. CRIMINAL- Upto $1,000 or 1 year in jail.
Now your worry about lead paint. They would need to prove that the lead paint was peeling from the walls. You stated you have utilized an encapsulating paint and a signed disclosure as long you have proof of those items then you should be fine from a liability perspective in my opinion.
Ankit
