Legal Question in Real Estate Law in California

Re: Verbal agreement broken

Your situation is somewhat unusual, but the pieces can be sorted out and the question answered based upon conventional principles of contract and residential lease law.

I would say it sorts out as follows:

1. The oral agreement to terminate the lease early is valid and enforceable. (It should be called an oral agreement rather than a verbal agreement, because technically "verbal" means "in words" rather than "spoken" and words are used in written contracts as well as oral.)

2. Your problem in enforcing the oral contract or defending yourself from a suit complaining for breach of the lease is proof of the terms of the oral contract. A judge or jury might believe you, or might believe contrary testimony from the landlord, if this went to court.

3. An agreement for early termination of a lease would be construed to call for the return of your security deposit, absent any other different provision in the oral agreement, simply because a security deposit is just that, and at the termination of a lease, for whatever reason, the landlord must account for the deposit and refun any portion thereof to which he is not entitled because of damage, rent not paid when due, or other justifiable claim against the departing tenant.

4. As a general rule, written agreements can be modified or rescinded orally.

5. Finally, remember that the landlord's possible sale of the unit you are leasing does NOT affect your rights as a tenant (except in the unusual situation where the lease itself contains a clause permitting the landlord to terminate or modify upon a sale). Your lease is a superior claim on the right of possession of the property acquired by the new owner; he takes "subject to" your tenancy.