Landlord Question and Answer Forum
I am creating the documents for a lease/purchase agreement. The deposit to be paid will be non-refundable if the purchase is not completed within the lease term. Should the "security deposit" be listed as $0 and the non-refundable deposit amount shown elsewhere in the contract?
By listing the deposit as a "security deposit", would that make it legally "refundable"?
George J, GA on Thursday, June 24, 2010
RE: Lease Purchase Deposit
I would have tenant pay both. The non-refundable deposit is to ensure that the tenant purchases the property. If the sale fails to go through, you would get the deposit. A security deposit is to ensure that rent is paid as well as any other financial obligations plus it protects you the landlord against any physical damages to the property.
Donna , NC
Monday, August 2, 2010
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