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No, you were not wrong for withholding the deposit. The Landlord cannot fail to make needed repairs and then expect you to pay rent. The Landlord violated your rental agreement by not attending to the flooding in your bathroom in a timely manner which made the situation worst. You did the right thing by withholding the rent.
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You may want to just wait and see if they sue and then file a counterclaim for breach of the implied warranty of habitability since the LL did not timely repair the flooding problem. If you want to take a proactive approach in the event that they do not sue you, but simply decide to black list you, then you can sue the LL in what is known as a declaratory judgment action where you ask for an order that states that you owe the LL nothing under these circumstances. In other words, because the LL breached the implied warranty of habitability, you are excused from paying any more rent that what the LL already kept in the form of your deposit.
Here is the IL law on that. Here is a sample suit to use as a go-by.
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For some reason I thought this was for Illinois law. I did not realize you were asking about SA. The same general concepts may apply. But, I will opt out and let SA expert try...
different expert here.
do you still need an answer?
let me know and what specifically you would like answered at this point. thanks.