New Jersey Lease Option Laws

[big h 0]

does anyone know if you need a security deposit in NJ for a lease option? if so how much is needed?

 

if i were to do a slo what is needed to give to the seller/landlord for legal purposes and from the tenant/buyer to lease out.

 

i heard that there would have to be some security deposit in case you need to evict.

 

any help is appreciated.

 

thanks-

[Adam King (MI) 1]

Big H,

I would go to your state's legislation website and look under your tenant/landlord laws. There should be some pretty hefty reading there for you. Once you have a grip on some good questions, you can call an attorney to get what you need. If you can't afford an attorney, I'm sure other investors locally would have some opinions to share with you.

Hope that helps,

Adam

[big h 0]

Big H,

I would go to your state's legislation website and look under your tenant/landlord laws. There should be some pretty hefty reading there for you. Once you have a grip on some good questions, you can call an attorney to get what you need. If you can't afford an attorney, I'm sure other investors locally would have some opinions to share with you.

Hope that helps,

Adam

 

 

thanks for the info.

[transactionsengineer 0]

Big H,

 

Here is the information you wanted on security deposits here in NJ:

 

The Rent Security Deposit Act

Most agreements to rent housing, or leases, require you to pay the first month's rent before you move in. Most leases also require you to pay a security deposit. The New Jersey security deposit law, the Rent Security Deposit Act, specifies how a landlord must collect, maintain, and return a security deposit. Cite: N.J.S.A. 46:8-19. Under this law, a security deposit is money that belongs to the tenant but is held by the landlord in trust. A security deposit is made to protect the landlord against the tenant's failure to follow his or her responsibilities as stated in the lease. This includes nonpayment of rent, or damage done to the apartment by the tenant, other than ordinary wear and tear. The lease should state clearly where the landlord will hold your security deposit and under what conditions it will be returned. The security deposit law now says that a landlord can't take any money from the tenant's security—for repairs, rent due, or anything else—while the tenant still lives in the apartment or house.

 

The Rent Security Deposit Act applies to all rental units, including tenant-occupied, single-family homes. The only exception is for rental units in owner-occupied buildings that have no more than two units other than the owner-landlord's unit. However, the law does apply even to tenants in these small, owner-occupied buildings if the tenant sends a 30-day written notice to the landlord stating that he or she wants the landlord to comply with the law's provisions.

 

If you are dealing with a lease purchase, your lease should identify the Rent Security Deposit Act N.J.S.A. 46:8-19.

 

Daniel