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Real Estate

Security Deposit

Also called: damage deposit, rental bond, tenancy deposit

A security deposit is money a tenant lodges against damage and unpaid rent, refundable at the end of the tenancy. Most jurisdictions cap the amount, require it to be held separately or in a protection scheme, and impose deadlines and itemisation rules for withholding any of it. Landlords who mishandle deposits frequently face statutory penalties of two or three times the sum.

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