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Alex J. Esq.
Alex J. Esq., Attorney at Law
Category: Consumer Protection Law
Satisfied Customers: 16267
Experience:  Experienced Licensed Attorney
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We rent a seasonal campsite at a resort. Every October we make

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We rent a seasonal campsite at a resort. Every October we make a $200.00 deposit for the following April to October season. The resort owners lost the resort as a result of unable to make their balloon payment in December. The ownership has now gone back to the original owners. The previous owners took all the bookkeeping and has kept each campers $200.00 deposit. the new owners are refusing to honor our $200.00, They suggested we get a lawyer and get the deposits from the previous owners. We all have recites stating our checks/ deposits were made out to the resort. Our seasonal rent is $1850.00 per year. We paid them $925.00 in April for the first half of the season. The second half is due July 15th. I feel we owe $725.00. The owner is expecting full payment. I feel since the deposit check is made out to the resort, & we have recites, it should be honored. Who is right?
Hello. My name is XXXXX XXXXX I will be happy to answer your question.

I am sorry to hear about this unfortunate situation.

Unfortunately, if the original owners foreclosed on the previous owners to whom you had made a payment, I am afraid that the original owners are correct in their position, as they would not be responsible for the debts or contractual obligations of the owners upon whom they have foreclosed, however you do have legal right to sue the previous owners to whom you made your deposit payment for the full amount of the deposit plus court costs.

I am sorry to provide you with this tough news, but please understand that I do have professional obligation to provide customers with correct answers, even when an answer is not favorable to the customer.

I wish you the best of luck!
Customer: replied 3 years ago.

Even though we have recites & cancelled checks made out to the resort, not the owners?

Did the previos owners operated a resort under a different corporate / LLC name?

Please understand that the name of the resort can remain the same, but different companies can be operating it.
Customer: replied 3 years ago.

No, it's the same name. Nothing is corporate. It's a small family owned resort.


Thank you for your follow up.

Do you know if the original owners foreclosed on the previous owners?
Customer: replied 3 years ago.

The previous owners bought the resort on a contract for deed from a woman who inherited the resort. It had been in her family for 30 years. They bought it on a contract for deed and after 7 years, could not make the balloon payment. When the previous owners left, they took all book keeping and camper deposit money. The owner told me she has a law suit pending against them.

Thank you for your follow up.

I did some further research and unfortunately my answer would remain the same, in a sense that the original owner would not be responsible for the security deposit, unless they recover it from the previous owner, but you can go after the previous owners for its return.

I am sorry about this unfortunate situation and I wish you the best of luck!
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