-
Depositor (Tenant/Lessee/Contractor):
[Depositor’s Name], a [business entity type] (if applicable) organized and existing under the laws of the state of [State], with its principal place of residence/business located at [Depositor’s Address]. -
Recipient (Landlord/Lessor/Service Provider):
[Recipient’s Name], a [business entity type] (if applicable) organized and existing under the laws of the state of [State], with its principal place of business located at [Recipient’s Address].
Both parties, having the legal capacity to enter into this Agreement, agree as follows:
1. Purpose of Security Deposit
1.1. The Depositor agrees to pay a security deposit to the Recipient as security for:
- Compliance with the terms of a [lease, rental, service, or other agreement].
- Payment of unpaid rent, damages, service fees, or contractual obligations.
- Coverage of potential damages beyond normal wear and tear to the property/services provided.
1.2. This security deposit shall not be used for ordinary maintenance or standard operational costs unless otherwise agreed.
2. Security Deposit Amount & Payment Terms
2.1. The Depositor shall pay the Recipient a security deposit in the amount of $[Amount].
2.2. The security deposit shall be paid on or before [Payment Due Date], via [payment method: cash, check, bank transfer, etc.].
2.3. The Recipient shall provide a receipt acknowledging the security deposit payment.
2.4. The security deposit shall be held in a separate account and shall not be commingled with the Recipient’s personal or business funds, as required by [State’s Law] (if applicable).
3. Use and Return of Security Deposit
3.1. The Recipient may use the security deposit for:
- Unpaid rent, fees, or charges under the agreement.
- Repair costs for damages beyond normal wear and tear.
- Cleaning costs beyond standard expectations (if applicable).
- Other contractual breaches that result in financial loss.
3.2. The Depositor is entitled to the return of the security deposit, less any deductions, within [X] days after the termination of the agreement or vacancy from the premises.
3.3. If deductions are made, the Recipient shall provide an itemized statement detailing:
- The amount deducted and the reason for each deduction.
- Any receipts or cost estimates related to deductions.
- The remaining balance to be refunded.
3.4. The security deposit shall be refunded via [payment method: check, bank transfer, etc.] and sent to the Depositor’s last known address unless otherwise specified.
4. Forfeiture of Security Deposit
4.1. The Depositor forfeits all or part of the security deposit if:
- The agreement is terminated early due to a breach by the Depositor.
- There is excessive damage, unpaid obligations, or violations that exceed the security deposit amount.
- The Depositor fails to provide a forwarding address for the refund within the required timeframe.
4.2. If the security deposit is insufficient to cover damages or unpaid obligations, the Depositor remains liable for the remaining balance.
5. Disputes & Legal Compliance
5.1. Any disputes over security deposit deductions shall first be resolved through good-faith negotiations between the parties.
5.2. If a resolution cannot be reached, disputes may be settled through mediation, arbitration, or litigation, in accordance with the laws of the state of [State].
5.3. This Agreement complies with applicable state and local landlord-tenant laws, rental deposit regulations, or other security deposit laws governing this type of contract.
6. Miscellaneous Provisions
6.1. Amendments – Any changes to this Agreement must be in writing and signed by both parties.
6.2. Severability – If any provision of this Agreement is deemed invalid, the remaining provisions shall remain in full force and effect.
6.3. Waiver – Failure to enforce any provision shall not constitute a waiver of future enforcement rights.
6.4. Entire Agreement – This Agreement constitutes the complete understanding between the parties and supersedes all prior agreements related to the security deposit.
7. Notices
All notices under this Agreement shall be in writing and sent to the following addresses via certified mail, email, or in person:
-
Depositor:
[Depositor’s Name]
[Depositor’s Address]
[Email Address] -
Recipient:
[Recipient’s Name]
[Recipient’s Address]
[Email Address]
8. Signatures
IN WITNESS WHEREOF, the parties have executed this Security Deposit Agreement as of the date first written above.
Depositor (Tenant/Lessee/Contractor):
By: ___________________________
Title (if applicable): __________________________
Date: __________________________
Recipient (Landlord/Lessor/Service Provider):
By: ___________________________
Title (if applicable): __________________________
Date: __________________________