Thank you for the clarification. So the manager verbally agreed to something that is not stated in your contract and you have nothing on writing form the manager to prove your promised that the contract would be terminated and you would be refunded your entire security deposit and that did not happen. Is that correct?
As a general rule a lease will state that no verbal agreements will be part of the lease and therefore you can only rely on what is stated in the lease unless the manager had a lease amendment prepared for you that you signed agreeing to let you out early and refund your deposit.
"There is no Minnesota law that allows a person to break a lease early after buying a house, condo or any other place. It is true that some landlords have an early-termination clause in their lease that allows a tenant to terminate the lease early if the tenant is buying a house, moving for a job or for some other reason. However, many landlords also require payment of a couple of months' rent to terminate a lease early.
The renter you talked to may have such a clause or buyout provision in his lease, but he should have reviewed his lease or talked to his landlord about it before purchasing a condo. He may be stuck with a mortgage payment and a rental payment.
If there isn't a buyout provision in a rental lease, many landlords may still allow a tenant to terminate the lease early if a tenant expresses a desire to move. However, in most cases, the tenant will be paying the landlord a couple of months' rent to terminate early." http://www.startribune.com/renting-and-the-law-can-a-renter-break-lease-when-buying-a-home/254894081/
You relied on the verbal representation made by the manager. You may have action against the manager, however, if nothing is in writing it would be difficult to require the landlord to be bound by a verbal agreement. You stated this is Minnesota, can you tell me if the manger is licensed with the State?
"Many tenants who sign a lease for their apartment or rental unit plan to stay for the full amount of time required in the lease, such as one year. But despite your best intentions, you may want (or need) to leave before your lease is up—for example, if you’re a student at the University of Minnesota, Twin Cities and only want to stay in your apartment for the period of time that school is in session. Or perhaps you’re moving in with your boyfriend or girlfriend. Sometimes, you may need to move in order to be closer to your new job or an elderly parent who needs your help.
Leaving before a fixed-term lease expires without paying the remainder of the rent due under the lease is called breaking the lease. Here’s a brief review of tenant rights in Minnesota to break a lease without further liability for the rent.
Tenant Rights and Responsibilities When Signing a Lease in Minnesota
A lease obligates both you and your landlord for a set period of time, usually a year. Under a typical lease, a landlord can’t raise the rent or change other terms, until the lease runs out (unless the lease itself provides for a change, such as a rent increase mid-lease). A landlord can’t force you to move out before the lease ends, unless you fail to pay the rent or violate another significant term, such as repeatedly throwing large and noisy parties. In these cases, landlords in Minnesota must follow specific procedures to end the tenancy. For example, your landlord must give you 14 days’ notice to pay the rent or leave (Minnesota Stat. Ann. § 504B.135) before filing an eviction lawsuit.
Tenants are legally bound to pay rent for the full lease term, typically one year, whether or not you continue to live in the rental unit—with some exceptions, as follows.
When Breaking a Lease Is Justified in Minnesota
There are some important exceptions to the blanket rule that a tenant who breaks a lease owes the rent for the entire lease term. You may be able to legally move out before the lease term ends in the following situations.
You Are Starting Active Military Duty
If you enter active military service after signing a lease, you have a right to break the lease under federal law. (War and National Defense Servicemembers Civil Relief Act, 50 App. U.S.C.A. §§ 501 and following.) You must be part of the “uniformed services,” which includes the armed forces, commissioned corps of the national Oceanic and Atmospheric Administration (NOAA), commissioned corps of the Public Health Service, and the activated National Guard. You must give your landlord written notice of your intent to terminate your tenancy for military reasons. Once the notice is mailed or delivered, your tenancy will terminate 30 days after the date that rent is next due, even if that date is several months before your lease expires.
You or Your Child Are a Victim of Domestic Violence
State law (Minn. Stat. Ann. § 504B.206) provides early termination rights for tenants (or their children) who are victims of domestic violence (or who fear imminent domestic violence), provided that specified conditions are met (such as the tenant securing an order of protection).
The Rental Unit Is Unsafe or Violates Minnesota Health or Safety Codes
If your landlord does not provide habitable housing under local and state housing codes, a court would probably conclude that you have been “constructively evicted;” this means that the landlord, by supplying unlivable housing, has for all practical purposes “evicted” you, so you have no further responsibility for the rent. Minnesota law (Minn. Stat. Ann. §§ 504B.215, 504B.385 and -504B.425) sets specific requirements for the procedures you must follow before moving out because of a major repair problem. The problem must be truly serious, such as the lack of heat or other essential service.
Your Landlord Harasses You or Violates Your Privacy Rights
Under state law in Minnesota, your landlord must give you “reasonable” notice to enter rental property (Minn. Stat. Ann. § 504B.211). If your landlord repeatedly violates your rights to privacy, or does things like removing windows or doors, turning off your utilities, or changing the locks, you would be considered “constructively evicted,” as described above; this would usually justify you breaking the lease without further rent obligation.
Landlord’s Duty to Find a New Tenant in Minnesota
Landlords in most states (for example, Arizona) must make a reasonable effort to re-rent their units when a tenant breaks a lease, rather than charge the tenant for the total remaining rent due under the lease. Unfortunately, landlords in Minnesota (Control Data Corp. v. Metro Office Parks Co., 296 Minn. 302 (Minn. 1973)) do not have the same responsibility to “mitigate damages” by trying to rent their property reasonably quickly and keeping their losses to a minimum if you move before a lease ends. If you break your lease and move out without a legal justification (described above), try to work something out with your landlord. Don’t just move out and hope your landlord gets a new tenant quickly and doesn’t charge you for the remaining time on your lease. Provide your landlord as much notice as possible and write a sincere letter explaining why you need to leave early. Ideally, you can offer your landlord a qualified replacement tenant with good credit and references, to sign a new lease.
But keep in mind, that if the landlord doesn’t agree to let you off the hook, you will be liable for paying rent for the remainder of your lease. This could be a substantial amount of money if you leave several months before your lease ends. Your landlord will probably first use your security deposit to cover the amount you owe. But if your deposit is not sufficient, your landlord may sue you, probably in small claims court where the limit is $15,000 in Minnesota.
How to Minimize Your Financial Responsibility When Breaking a Lease
If you want to leave early, and you don’t have legal justification to do so, there are better options than just moving out and hoping your landlord gets a new tenant quickly. There’s a lot you can do to limit the amount of money you need to pay your landlord—and help ensure a good reference from the landlord when you’re looking for your next place to live.
You can help the situation a lot by providing as much notice as possible and writing a sincere letter to your landlord explaining why you need to leave early. Ideally you can offer your landlord a qualified replacement tenant, someone with good credit and excellent references, to sign a new lease with your landlord." http://www.nolo.com/legal-encyclopedia/tenants-right-break-rental-lease-minnesota.html