What is security deposit?

Security deposit is an amount deposited by tenant with landlord at the time of starting of lease that to be refunded by landlord at the end of lease period or at the time when tenant vacate the property subject to certain terms and conditions mentioned in lease deed and agreed between the parties. The security amount deposited depends on the value of property you are renting or as per procedure followed in particular state and territory.

What to do if landlord refuses to refund security amount?

If your landlord refuses to refund the security money at the time of vacating property or is threatening to retain certain amount, tenant has option to send legal notice to landlord for refunding security amount. Generally issue resolves and get settled once landlord receives legal notice. So it is recommended to send well-drafted and legally sound legal notice drafted by attorney for refunding security amount. If issue doesn’t get resolve, tenant has option to approach local court.

Is there any limit of security deposit is prescribed under law?

No, law has not prescribed any limit that may be charged by landlord as security deposit. It is as per discretion of landlord and he same is informed to tenant by signing an agreement. However, the security amount should be reasonable and generally equivalent to month or two’s rent amount. But it varies from state to state. As in Delhi, an amount equivalent to one or two month’s rent is deposited as security.

When can landlord retain the security deposit?

Landlord can retain whole or part amount of security amount if tenant violates any term of agreement or tenant failed to pay the rent amount or has damaged property or has not paid debts such as electricity bill, water bill etc. In case if tenant fails to give agreed period of prior notice period, landlord can retain the security amount as it may lead to potential loss to landlord owing the time to find another tenant for the property.

What is the procedure to draft and dispatch security refund notice?

What are the services Lawyerinc offers for refund of security notice?

Our services:

Our comprehensive range of end-to-end solutions includes following:

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Do contact us in case of any query related security refund and much more. To avail any of the above-stated services, kindly establish contact by posting a query at our site.

What are various documents required to draft security refund notice?

What is the legal recourse available to tenant after sending legal notice?

The first recourse of tenant should be to send well-drafted legal notice to landlord as most cases get resolved by this only. A prescribed time period of 15 or 30 days is given to landlord to refund the security amount. In case landlord fails to refund or reply to the legal notice, tenant has option to move to Consumer Forum under Section 13 of Consumer Protection Act, 1986. He can also file civil suit for recovery of security amount under Order 37 of Code of Civil Procedure, 1908 before District Court.

Is it mandatory to send legal notice before moving to court for refund of security?

Although, law has not make it obligatory to send legal notice before moving to court for refund of security amount but as a procedure it is recommended to send a legal notice as the notice may be used as an evidence before court that shows that money is owed to landlord. Moreover, legal notice indicates that tenant has given sufficient time to landlord to refund the security amount but despite efforts landlord failed to refund the same.

Frequently Asked Questions