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suryadhakray   24 April 2015

Is it true that tenant has to pay securitydeposit in advance

Hi,

 

I just want to know is there any law which states that Owner will take Security Deposit & advance rent before making registration paper. If yes then is there any law which says they will return your security deposit only when you vacate the house.

 

Please help me out.



Learning

 10 Replies

bsrao   25 April 2015

The owner dictates all terms. Any deposit is refundable, by default. Hope this helps. B S Rao

suryadhakray   25 April 2015

They anyhow have to dictate everything. But when you ask them to pay 2-3 days before vacating the house they say that no once you vacate the house only then we will give you the deposit this is the rule. I am just asking if such law is set or made by goverment? And if such things are not mentioned in Agreement.

There was an incident where Owner is saying that he will give only 45k at the time of vacating the house and 20 k post 15 days of vacating the house which was not mentioned in the agreement.

Also is there any law which says that tenants have to stay in the property for atleast 6 months because that is called as locking period. If you dont do that they will deduct one months rent from the security deposit. What if that clause is not mentioned in agreement?

bsrao   25 April 2015

All these clauses are enforceable if they are part of a rental deed. These are not stipulated by any act. Rest all happen by mutual understanding. 

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     25 April 2015

I too agree with Mr.bsrao suggestion.

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     29 April 2015

A deposit is taken as a security to cover future liabilities of the tenant, to secure himself (the landlord in this case) against any possible default or refusal by the tenant. Hence it has to be paid in advance. If it is paid in arrears it is neither a deposit nor a security. The security deposit will be returned only after the tenant has cleared all his liabilities to the landlord and he is no more likely to incur any liability towards the landlord. Such a situation would come about only after the tenant has given vacant possession of the house and cleared all his liabilities. In order to ascertain for himself that the tenant has cleared all his dues the landlord may need time to inspect the vacated house, his account with the tenant and clearance by the tenant of his dues to third parties like electricity bill, dues to other agencies, if any etc. Hence it would be only reasonable if the landlord says that he will return the deposit only after a grace period. These are plain logic in dealings between persons and there is no need to search for the law.

S K KARNjhc (Legal Adviser)     29 April 2015

A house which is to be rented normally made an agreement paper with mutual understanding, where tenant is required to deposit some advance/security in return of default of paying rent or something occurrences made by tenant with rented, to be used for maintenance of the house, all these are  according to rental deed/agreement which further to be enforceable if found to be violating from either side .

Thankyou

suryadhakray   29 April 2015

So if they are taking security deposit in advance then why can't they pay back it to tenants in advance. For example if i am vacating the house he/she (owner) can come to inspect the property after vacating the house. Why they need grace period to inspect their own house? If some damae happened during grace period who is going to be responsible for that.

Because once we vacate the property we would not know who is going there after us. What to do in such cases? is it good to click the pictures of the properties while vacating the house?

The other thing when i searched law for rental properties. It had mentioned that the security deposit should be equal to 1 months rent which is mentioned in RESIDENTIAL_TENANCY_ACT_2011.

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     30 April 2015

The tenant can also ask for inspection of the flat and grace period before signing the agreement. But if another tenant comes before you sign, pays the landlord and signs the agreement the landlord may give it to him. There could be several reasons for the grace period. The landlord may not have ready cash to give you. The accounts may be checked by his accountant who will need time to check the account. I have already mentioned about dues to third parties. The landlord or his representative should find time to inspect the flat. You can of course take pictures. If there is still dispute either you will have to mutually resolve or go to court. If the law says that the landlord can take only one month's rent as deposit you can tell the landlord so. But the only way you can enforce the law is by going to court.

richardjohnson   30 April 2015

The owner will make an agreement in which he will states all his terms regarding rent and security deposit. Usually, the owners take double rent as security deposit, but they return it after you leave their house. You do not need to give him any payment without any receipt or agreement.

T. Kalaiselvan, Advocate (Advocate)     02 May 2015

Very well addressed by experts on the field. Hope the querist is satisfied with the replies if not let him clarify further issues by fixing an appointment with a local lawyer paying consultation fee.

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