[AZ] Told to open a water account that doesn't exist. Paid a month's rent to hold the place. Move-in is Monday
Location: Arizona, Yavapai County.
Figures below are rounded and slightly altered for privacy, but the proportions are accurate.
Timeline:
Aug 11, mid-morning. Leasing agent emails our approval with an itemized monthly breakdown: base rent $1,350, admin fee $27, resident benefit package $70, total $1,447/mo. Utilities line reads "No Exceptions. All utilities to be turned on in the resident's name for the entire lease term." No utility charge listed anywhere.
About an hour later. We sign their "Earnest Money Holding Agreement" and pay $1,350 through the tenant portal. That agreement says in bold highlight that if the applicant cancels for any reason, the earnest money is forfeited.
Minutes after our payment. Same agent emails a list of utility accounts we're required to put in our name before move-in, naming the electric company, the gas company, and the town water utility with its phone number. Says we'll need to show proof utilities are on before we get move-in instructions.
Aug 11 through Aug 24. We repeatedly ask for the lease, telling them in writing we need it to set up utilities. Our agent leaves the company. Lease finally arrives Aug 24, eleven days before the start date. We sign it. It contains the same "No Exceptions, all utilities in resident's name" clause.
Late Aug. We apply for water. The town rejects it: units A and B of the duplex share a single meter and cannot be separately billed.
We report this. New property manager replies "I have notes in the property that water is separate," then "water is separate we need to have it under your name," then "without the utilities confirmations we will not be able to grant you access to the property."
She later confirms with the town that there's one meter, and sends an addendum adding a flat $70/mo for water and sewer, taking us from $1,447 to $1,517.
We have not signed the addendum, have not taken possession, and have paid nothing beyond the initial $1,350. The remaining move-in balance of roughly $3,200 is due Monday.
We sent a written request for a mutual release with return of the $1,350. Their handbook sets a lease break fee of 2.5 months' rent plus security deposit.
Questions:
Does a lease clause requiring all utilities in the tenant's name have any effect when the utility provider will not open an account for the unit?
Their forfeiture clause is triggered when "the tenant applicant cancels." We signed; they're the ones proposing to change the deal after execution. Does declining a post-signing modification count as cancelling?
Their holding agreement says earnest money is credited only after possession is taken by (1) signing the lease, (2) turning on all applicable utilities, (3) getting keys, (4) moving in. Step 2 is impossible here. Does that matter?
If we walk, what's realistic exposure beyond the forfeited hold on a unit that was never occupied and can be re-rented immediately? Does Arizona's mitigation requirement limit them?
We have every email, text, and document. Consult with a local attorney scheduled. Mainly want to know if we're missing something before Monday.