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If a tenant back out from a rental signed contract and give up deposit. Does deposit belong to lanlord or realtor agent/broker? Thank you.
Is this question real or theoretical? If real, read your contract for penalties for breaking your lease.
If theoretical, I don't know why a deposit would ever be correlated to a realtor agent/broker - and I would note it is not common here to use a realtor agent/broker for a rental property. For apartments, breaking a lease usually results in a penalty of 1-2 months rent which can be far more than the deposit.
It is a real question. We are owner. We did not get any portion from that deposit. We also have to pay the fee for the agent as contract between 2 parties(btw we are ok with this part) I m just curious about that deposit.
It is a real question. We are owner. We did not get any portion from that deposit. We also have to pay the fee for the agent as contract between 2 parties(btw we are ok with this part) I m just curious about that deposit.
Did they put it in an escrow account or something? Surely it's not sitting in the Agent's pocket....
I manage my own properties. When I accept a deposit to hold the place, we sign an agreement that I keep this money if the applicant defaults or it will be applied to the security deposit when we sign the actual lease (I usually just take $100 to hold the place).
Once the lease is signed -- which means I get first month's rent and another full month's amount for security deposit -- I will refund whatever is unused from the time they back out to the time I get new tenants, less any damages.
If they never moved in, I would do the same as if they did move in. So if the place is occupied in 2 weeks by another, they would get all back except 2 weeks' rent.
It is a real question. We are owner. We did not get any portion from that deposit. We also have to pay the fee for the agent as contract between 2 parties(btw we are ok with this part) I m just curious about that deposit.
Sounds like it would depend on the wording in your contract with the agent. If it does not entitle the agent to keep the deposit then I would expect them to pay it to the owner.
Sounds like it would depend on the wording in your contract with the agent. If it does not entitle the agent to keep the deposit then I would expect them to pay it to the owner.
Exactly - you must read your contract for the answer. It's possible that the agent somehow earned a fee/commission (per the contract) and that's why they took the deposit.
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