ErikOk 10 Report post Posted November 28, 2012 I've had a few occasions where a seller asks about a security deposit. I have told them that the security deposit is associated with a straight rental, and not a lease purchase. Plus the tenant-buyer has the owner mindset and has the option consideration invested into the house. This has worked the times I have been asked. But, if the seller were to be absolutely set on wanting a security deposit how have you all handled it? What would you write into the contract? Or would it be better to just offer them some of the option consideration and explain that it is non refundable vs a security deposit being refundable? I have also seen where the security deposit must be put into a separate bank account and not mixed with personal funds, True? Would it be a good idea to include a security deposit in all of the lease agreements? I ask because I have read that this prevents an equitable interest dispute by the tenant/buyer Share this post Link to post Share on other sites
Mastamike6 1 Report post Posted November 29, 2012 What I have done in the past is offer the seller a portion of the option fee and explain to them that it is non-refundable and can br treated as a security deposit if the tenant-buyer does not exercise on their option. I then add an addendum to the assignment contract contract stating that in the event the contract is assigned, that original homeowner gets X amount of the Assignment fee paid. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted November 29, 2012 I don't ask for a security deposit. On top of the first month's rent and the option money, it can be self defeating as you're trying to close the deal.If the homeowner is insisting on something to calm his nerves, then I'll offer him some of the option money, starting with a half month's rent and doing my best to reach an agreement with as little as possible going the owner's way. Like you, I emphasize the nonrefundable part which often is the clincher. Share this post Link to post Share on other sites
DanielSun 7 Report post Posted November 29, 2012 Same issue here, almost everyone is assuming there will be a deposit. If the deal is good I am willing to work with 1 month deposit, but if they start to want a down payment it's instant no deal. However there are some people doing RTO deals in my area by splitting option money 50% with seller. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted November 29, 2012 Daniel, a 50% split is the last resort to save the deal. . .if you think the deal is still worth it for you. Share this post Link to post Share on other sites
