PROPGUIDE − A Complete Property Guide
#happyhome

An Explainer: Security Deposit

Loading video...

Description

Security deposit is the amount of money paid to prove the intent to commit to a deal.

PropGuide Explains Security Deposit

When you rent a house, you pay a certain amount of money as security deposit to the landlord. The security deposit is given as a proof of your intent to rent the house. It is also to ensure that the landlord does not lose much from the transaction even if you vacate the house without intimating the landlord in advance. Security deposit, also, ensures that you do not damage the property in any form. The security deposit you pay when you rent a house might be equivalent to a month’s rent, or more, depending on the case. In some cases, security deposit is refundable. In some cases, it is not.

In some cities like Bengaluru, security deposit can even be as high as up to 10 months’ rent. In Chennai, it is typically six months. A Chennai court recently ruled that landlords could collect only one month’s rent as security deposit. Landlords, however, argue that it is difficult to evict a tenant when he defaults on rent payment and that the deposit is their only security in such cases or in case of any damages to the property.

Security deposit is also paid to sellers and lenders as a proof of one’s intent to buy or pay back.

Check out PropGuide's comprehensive guide to real estate terms here.

Blogs Related To Security Deposit

Do I need to furnish any security to get a home loan?

Tags: Real Estate, seller, landlord, Video, security deposit, renting, propguide, housing, Lender


#Budget2017: Affordable Housing To Get Infrastructure Status

After Finance Minister Arun Jaitley presented the Union Budget 2017-18, Prime Minister Narendra Modi said the housing sector stood to gain immensely from the new announcements.

February 01 2017

+ Click Here To Read This Article

#Budget2017: Real Estate Sector Demands Simple And Effective Norms

One of the major announcements was of the Real Estate (Regulation & Development) Act 2016 (RERA), which is expected to be profitable for both customers as well as builders, will bring about a great deal of transparency.

January 31 2017

+ Click Here To Read This Article

#Budget2017: Regulation Of Construction Material, Reducing Construction Cost Are The Key Areas To Focus On

Housing for All by 2022, act as a major driver for the upliftment of construction industry. in the upcoming Union Budget 2017, any policy announcements in infrastructure and industries will directly benefit the construction industry too, which is at present seems positive.

January 19 2017

+ Click Here To Read This Article

#Budget2017: Top 5 Wishes On A Real Estate Developer's Mind

One of the country’s largest contributors towards Gross Domestic Product (GDP) and employment generation, real estate sector, is extremely hopeful for a positive Budget 2017-18.

January 17 2017

+ Click Here To Read This Article

Solar Rooftops Could Help You Cut Down Energy Bills. Know How

Increased urbanisation and rising incomes are expected to result in an exponential growth in housing. Replacement of diesel generator (DG) sets with solar rooftops in residential housing complexes would be vital to achieve the determined target of installing 40 GW rooftop solar power capacity in India by 2022.

January 11 2017

+ Click Here To Read This Article

Is The Time Ripe For NCR Buyers To Book Their Dream Homes?

The Q2'FY16 report by PropTiger Data Labs suggests that now might be the right time to invest in NCR. Here's why.

November 10 2015

+ Click Here To Read This Article

Is NCR Losing Out To Mumbai, Bengaluru, Pune?

The National Capital Region, for very long, has been the largest residential real estate market in India. But, is NCR losing out to Mumbai, Bengaluru and Pune?

November 10 2015

+ Click Here To Read This Article

Unsold Inventory: Learnings From PropTiger Q2 Report FY'16

Unsold inventory in major Indian cities have been declining, quarter by quarter.

November 10 2015

+ Click Here To Read This Article

Here are the week’s top news stories from the real estate sector.

Here are today’s top news stories from the real estate sector.

Confused about the the difference between carpet area, built-up area and super built-up area? Here...

Pune real estate market is bustling with development of under construction as well as ready for...

Goods And Services Taxes (GST): The Rajya Sabha on Wednesday passed the Constitution Amendment Bill...

 Union Budget 2017-18 is being presented by Finance Minister Arun Jaitley today. This Budget...

If you are looking for properties for investment that will see quick appreciation in prices,...

A positive move, provisions for capital gains tax stands tweaked, much to the benefit of the...

A building code is a set of norms that govern construction of buildings by stipulating minimum...

PropGuide simplifies complex real estate jargons for you.

Proptiger has released it's quarterly review report on India's real estate sector. Ankur Dhawan,...

Sunil Mishra, Chief Business Officer, PropTiger, talks on new online realty platforms for NRIs.

Subscribe Now

To stay tuned with real estate updates

Pick:

x +

Drop Your Query here


Top