Landlord and tenants

You should start by reading the information on your state's "
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During the Tenancy - Landlords & Tenants | The Office of Attorney General Lori Swanson
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Minnesota Rental Laws
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Landlord-Tenant Handbook: During the Tenancy
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> type(s) of repair and habitability problems that qualify for rent withholding or repair-and-deduct

> type(s) of notice(s) you must provide the landlord and the amount of time the landlord has to fix
the problem before you can withhold rent or use the repair and deduct remedy

> the limit on how much rent you may withhold or deduct and how often you can use a particular
remedy

> protections available to you from landlord retaliation, such as a termination notice or rent increase
for exercising your legal right to pay less rent because of ALLEGED habitability problem(s), any other
conditions that apply before you can withhold or deduct rent, such as a requirement that you pay
rent into an escrow account.
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RENT ESCROW
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A rent escrow action can be filed at any time after the requisite notice or inspection orders have expired.

To file a rent escrow action, a tenant needs to pay to the court administrator all rent, if any, that is due.

Minn. Stat. §566.34, subd. (2)(c) (1992).

Landlord-Tenant Laws of Minnesota, Section 566

There is a small filing fee, but the administrator can waive the fee if the tenant cannot pay it.

Minn. Stat. §566.34, subd. 5 (1992).

Landlord-Tenant Laws of Minnesota, Section 566

The tenant must give the administrator a copy of the inspector's order or the tenant's notice to the landlord.

The tenant should estimate how much it will cost to make the repairs.

The tenant must also give the administrator the landlord's name and address.

A court administrator will help a tenant complete a rent escrow petition.

Minn. Stat. §566.34, subd. 6 (1992).

Landlord-Tenant Laws of Minnesota, Section 566

Once the rent has been deposited with the court, the court administrator will schedule a hearing.
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The hearing will take place within 10 to 14 days. In most cases, the court will notify the landlord of the hearing by mail.

However, if fixing the housing code violation will cost more than the conciliation court limit (currently $7,500) then someone other than the tenant must give the hearing notice to the landlord.

A sheriff can deliver the notice.

The landlord can take action to evict the tenant if the tenant does not deposit the full amount of rent in escrow.

For state law on rent withholding, see Minn. Stat. Ann. § 504B.385; repair and deduct, see Minn. Stat. Ann. § 504B.425; prohibiting landlord retaliation, see Minn. Stat. Ann. § § 504B.441, 504B.285.
 
You apparently had a certain amount of rent in an escrow account of some sort.
I presume you owe the landlord some amount of money and made a settlement agreement, then the landlord withdrew the money from the amount held in the account?
If so, or reasonably close to your situation, yes, that is pretty much the purpose of having such an account.
 
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