口头 agreement is still an agreement.

It depends on judge, and I can see this is going to be ok for 侄女和3个同学

I guess they do not have a lease since this is a "口头 agreement ".  This is a strong indication of the truth of the statement from your 侄女和3个同学

They should have good chance to win the case IMO.

Also, was the modification/rehab done after they moved in?  why did they allow the lanlord to do so?

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