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A security deposit agreement is an agreement between a landlord and a tenant where the tenant deposits a specific amount of money with the landlord at the time the lease is signed.
While landlords are not legally required to take a deposit, it is incredibly rare to find a landlord who will not ask for one. Deposits provide protection for landlords so they will often insist on receiving one.
You should not pay your deposit before you have read and understood the terms of the tenancy agreement and it has been signed. Your landlord should not ask you to do so before.
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.
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