Definition of Security deposit:
Bond or cash given into the custody of another as a guaranty of performance, or to secure occupancy or possession.
Security deposits serve as an intangible measure of security, or as a means of tangible security in the event of damages or lost property.
A security deposit is money that is given to a landlord, lender, or seller of a home or apartment as proof of intent to move-in and care for the domicile. Security deposits can be either be refundable or nonrefundable, depending on the terms of the transaction. A security deposit is intended as a measure of security for the recipient, and can also be used to pay for damages or lost property. .
How to use Security deposit in a sentence?
- Security deposits typically must be paid prior to moving in and state laws dictate how security deposits are applied once needed. .
- A security deposit serves as a means to fix or replace something in a rental unit that was damaged, lost, or stolen by the renter.
- Security deposits are typically refunded upon departure if the property was left in ‘reasonably’ good shape—to the point of normal depreciation).
Meaning of Security deposit & Security deposit Definition