What is Real Estate Deposit?

To put it briefly, the Deposit is the name given to the assurance guarantee that the rented property will not be damaged. In rental transactions, this guarantee is given to the landlord by the tenant before the rental process and is refunded to the tenant when leaving the property after the end of the rental agreement.

Deposit, which is applied as a stereotyped rule, is the general name given to the security deposit requested from the tenant in advance for material damages that may occur during the rental process in the residence/workplace rented by the tenant. An important point to be noted in this regard is that the deposit is not given for purposes such as replacing the rent debt and such. Accordingly, it is not the right method for the tenants to choose not to pay the rent for the last few months, which they frequently apply for, and not to take the deposit instead of these unpaid rents, but if the real estate owner takes legal action, it may cause financial losses for the tenant.

What Does a Real Estate Deposit Do?

The deposit is a fee taken to be a guarantee for direct material damages such as breaking the door, serious damage to the cabinets, dismantling of the parquet, and broken windows. In line with this definition, it can be said that the damages that occur due to use or the deformations that occur with time, to give an example; the tenant is not held responsible for the loss of value resulting from ordinary use, such as fading of the tiles, wear of the electrical infrastructure. Accordingly, no deductions can be made during the repayment of the deposit.

In this context, it should be noted that the deposit; can not be used to correct situations arising from ordinary use such as leakage of the water system, failure of the boiler, or a problem in the electrical installation. Because the fixture of the immovable can be used by the tenant and it is the responsibility of the landlord to keep it active. However, if there is a deterioration in the aforementioned fixture caused by the wrong use of the tenant, the tenant is held responsible. In this case, the loss is reflected in the deposit. Disputes between the parties in cases such as non-refundable / deduction of the deposit are resolved by the legal authorities. While making a legal assessment, it is decided who is right within the scope of the above criteria.

Who Determines the Real Estate Deposit?

Within the scope of the Code of Obligations, the amount of this guarantee mustn’t exceed the three-month rent if the tenant is required to deposit the contract for housing/workplace rents. The lessor of the real estate has the right to demand a maximum of three months' rent from you as a deposit. However, the deposit amount to be taken from the tenant can’t exceed the 3-month rental fee, even if a bilateral agreement has been reached between the parties. The deposit received must be deposited in a time savings account and not held by the landlord as per the law. This situation is implemented to prevent the loss of value that may arise from inflation. This system is also in favor of the lessor so that the security does not lose its value as of the day it is received, to be a guarantee for a loss caused by the lessee, and it will reduce the possible risk of the lessor. As stated in the law, the lessor is not entitled to withdraw this amount from the bank without the tenant's consent or a court decision/final enforcement proceeding.

Getting back the money paid to the real estate owner as collateral can sometimes be a problem for the tenants. In the Republic of Turkey, the rights of tenants are protected by law. Particular attention should be paid to the items called "guarantee fee" or "deposit" when signing the lease contract in order not to encounter a fraud problem in this regard and against possible problems.

How Much is a House Deposit?

Regardless of the place you have rented, it does not change the rule that the deposit fee you will pay for the m² and other features cannot exceed the total of 3 months' rent. This is clearly stated in the Code of Obligations, where the amount you have to pay for the deposit is 3 months' rent. The statement in the law is “If the tenant is obliged to assure the tenants sure residences and roofed workplaces, this assurance can not exceed the rent for three months.” is in the form.

For example, for a house rented with a monthly amount of 231.73 USD (4,000 TL), the highest deposit that the landlord can demand cannot be more than 815.20 USD (12,000 TL).

What is the Minimum Deposit on a Property?

If the landlord does not demand a deposit for the residences to be rented, there is no obligation to pay the deposit.

How Much is a Real Estate Deposit in Turkey?

In determining the deposit, first of all, it is the most important step to analyze the residence/workplace well, the elements determined as fixtures in the house should be recorded in the contract, in this process, the pictures of the fixtures mentioned should be taken and added to the contract. However, the parties need to read and understand the rental contract and the conditions specified for the deposit and sign the contract to prevent possible disputes that may occur in the future. Particular attention should be paid to the condition of items such as cabinets, plumbing, combi boiler, air conditioner, tiles, paint, flooring, doors, and built-in and should be included in the scope of the deposit.

How to Pay the Deposit When Renting a House?

While the owner of the real estate rent out their houses or workplaces, they can secure themselves against the damages that may arise from the tenant in the future through the deposit they demand. After the tenant moves out of the property, the property needing renovations may have caused damage to the property owner that will cause financial loss. In this and similar cases, the property owner covers the expenses with the guarantee received under the name of the deposit so that following the instruction when renting a house could be useful. If the tenant has not caused any material damage to the property and has returned the property as received, the landlord must return the deposit received to the tenant. The amount of the deposit received must not be hand-delivered to the landlord, but must be deposited into a timed savings account.

Is a Property Deposit Refundable?

Tenants who want to get their deposit back must first inform the property owner that the property will be vacated. At the payment point, the owner of the real estate and the tenant can agree to make the deposit payment at once or in installments. The condition of the immovable before it is handed over to the tenant and the situation when the tenant leaves the property should be compared in detail by the parties, and the parties should express the situation in writing through a report. In addition, photographing the condition of the tenant when leaving the real estate will protect the rights of both parties regarding possible problems that may arise in the future.

If the property owner does not want to return the deposit, the tenant can take legal action. If the landlord does not file a lawsuit against the tenant within three months following the expiry of the lease agreement or has not notified the ban in writing that he or she has initiated the enforcement proceedings, the relevant amount can be requested from the bank.

Who Should Pay a Real Estate Deposit?

The deposit is a security that must be paid by anyone if the owner requests it. Within the scope of the Law of Obligations, "ARTICLE 342- If the tenant is contracted to assure the tenant in housing and roofed workplace rents, this assurance cannot exceed the three-month rental price." The right of the lessor to demand a deposit from all tenants, regardless of whether they are renting, is guaranteed by the state.

Do Foreigners Pay Real Estate Deposit in Turkey?

If the deposit is included in the contract by the real estate owner during the house rental process, it is a security fee paid by foreigners. Foreign nationals are not exempt from the deposit.

Can A Real Estate Agent Keep a Deposit?

In most cases, a real estate agent represents the seller of a property and is paid a commission by the seller when the property is sold. The agent may also work with buyers and help them find a property, but they are generally not paid a commission by the buyer. Instead, the commission is typically built into the price of the property and is paid by the seller. In some cases, a real estate agent may ask for a deposit to hold a property while it is being shown to potential buyers. This is more common in the case of rental properties and is intended to ensure that the agent is compensated for their time and effort in showing the property.

Deposits are typically used to secure a rental property or to show good faith in the process of buying a home. The deposit should be returned to the person who made it if the transaction does not go through or if the terms of the agreement are not met. If you have a dispute with your real estate agent over the deposit, you may need to seek legal recourse to have it returned to you. It is always a good idea to carefully review any agreements or contracts before signing them and to keep good records of all financial transactions.