Dear Forum Members,

I'd like to know about the Legal Clauses regarding 'security deposit' in a rental transaction on behallf of both the Tenant and the Landlord.

Need lawful suggestions please.

Thanks.
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  • Security Deposit for Rental Agreement

    Originally Posted by Benz

    Dear Forum Members,

    I'd like to know about the Legal Clauses regarding 'security deposit' in a rental transaction on behallf of both the Tenant and the Landlord.

    Need lawful suggestions please.

    Thanks.


    Leave and License Agreement should have a strong clause to secure the Security Deposit given the Licensee ( tenant is a wrong word ) and at the same time allow Licensor/s ( Owner/s ) to set off any unpaid licensee fees, unpaid utilities bills, unpaid for repair/s, maintenance etc.

    Security Deposit serve the basic purpose of being a Caution Money in the hands of the Owner/s to secure unpaid license fees if the Licensee defaults in paying it on time.

    It is always advisable to have 6 -12 months license fee as deposit to cover the above mentioned eventualities and avoid litigation between owners and licensee.

    At the same time, licensee has to be careful in exchanging vacant possesion of the premises only against reciept of Security Deposit ( subject to statutory deductions ). If he hands over the possesion on good faith, without actually getting the deposit, the recovery of the security deposit can be a long haul for him.

    In the agreements drafted by me, for my cleints, we put the following clause for the security deposit :

    The Licensee will pay a sum of Rs. __________/- (Rupees ____________________ Only) on execution of this agreement as and by way of Security Deposit for the observance and performance of the terms and conditions of this agreement. This deposit is subject to refund to the Licensee without any interest on expiry/revocation of this agreement and further subject to such deductions like unpaid Electric Bill, Telephone Bill, Cable Charges, Parking Charges, Pipeline Gas Charges, Compensation, repair etc., therefrom that the Licensor may then be entitled to receive and recover from the Licensee. The Licensor shall at the time of handing over the security deposit to the Licensee, retain a sum equivalent to three months of average electricity bills, Telephone Bills, Pipeline Gas Charges, and Cable Charges and Parking Charges, which shall be adjusted towards payment of unpaid electricity bills, telephone bills, Pipeline Gas Charges, Cable Charges, Parking Charges, if any, for the period the Licensee has been in occupation of the said flat.



    Hope this helps
    I can send copies of Leave License Agreement on request
    Regards
    Ram
    Realtor
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    1 Comments
    • nilimesh.rocks8 months ago
      Can I ask for interest on the deposited amount ?
  • What To Do If A Landlord Cheats??

    Thank you for your timely help Mr. Ram.

    I have been cheated of half the amount of my Security deposit recently. The landlord citing reasons like repainting the house and repair work.

    Is it the outgoing tenants responsibility to pay for the repainting and repair of the normal wear and tear after 2 years of stay?

    Please suggest the next course of Action.


    @ I'd request members who faced similar problems to please share their experiences...
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  • Wht does ur agreement say ?

    Originally Posted by Benz
    Thank you for your timely help Mr. Ram.

    I have been cheated of half the amount of my Security deposit recently. The landlord citing reasons like repainting the house and repair work.

    Is it the outgoing tenants responsibility to pay for the repainting and repair of the normal wear and tear after 2 years of stay?

    Please suggest the next course of Action.


    @ I'd request members who faced similar problems to please share their experiences...


    Hi Benz,
    Everything depends on the clauses you have put in the agreement
    If your agreement has a clause that landlord can deduct money for paintin etc, there is nothin you can do about it

    However agreements surely incorporate that normal wear n tear are a part of the normal stay and should not incur dedcution from deposit
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  • Difference between damage and normal wear and tear

    I am also one of the victims. My landlord is asking me to do repaint after 2.5 years of accommodation. There is a clause with regards to "damage to painting".

    What I would like to know is the difference between "damage" and "normal wear and tear". In my case, there is not even a single stains or scratch or paint coming out of the surface. Whatever is there is only due to dust and normal use.

    Now would that be construed as damage ?
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  • Security Deposit Issue

    I was flat hunting and I found a place in Chandivali Mumbai. I liked the house and agreed to pay 16k monthly rent and 50k security deposit. I also asked that I will need a new fridge before moving in the house.On a mutual agreement, I paid security deposit to the flat owner on 16th Feb'13(took a receiving on the ID card copy of the owner) and we agreed that i will move in from 1st march'13. we were supposed to get the agreement done on 28th Feb'13.
    Meanwhile my husband got a transfer notice to another city and we are now bound to move out of mumbai. today when we have informed the owner that we will not be shifting in the flat anymore he says he will not return the deposit and if at all he returns he will cut the amount of the new fridge that he purchased as per our request.
    pl suggest me how i should deal with this situation. what are the legal implications that i may have to bear for the same. i shall be grateful to this community.
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  • Security deposits helps Landlord and Tenant both for time to time rent payment. Because in many cases specially with students such things are necessary for security purpose.
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