How can I receive my first and security deposit for a commercial?
Its generally on the commercial tenant and not the landlord to determine whether the particular business can be operated. On the other hand, if the landlord knows that a particular business intended by the tenant cannot be operated there and fails to disclose what they know, that may be fraud. I would expect the tenant to check with City Hall before advancing a deposit, or at least have a written contingency that the particular use will be approved. In other words, as the prospective tenant you did not do your due diligence. It also may be possible to obtain a zoning variance for your particular use. All of that said, without a written lease the landlord is going to have a difficult time arguing that zoning was the tenants responsibility or that the deposit was non refundable. Moreover, if there was a written lease that provided that auto repair was the only allowed use, then unless there is a variance, the doctrins of mutual mistake and/or impossibility may protect the tenant. Pro Tip: its (way past) time for you to retain an attorney to handle this for you.