Tenant’s Security Deposit Debt
If the tenant is obliged to give security (deposit) in the lease agreement, the amount of security must not exceed 3 months’ rent. The security may be agreed as money or negotiable instruments. If it is given as money, this money must be utilised in a time deposit account. If it is given as a negotiable instrument, this negotiable instrument must be deposited in a bank. The tenant performs the transactions of depositing the money into a time deposit account or depositing the negotiable instruments in a bank. However, the deposited or deposited security deposit may be returned based on the consent of both parties, the finalisation of the enforcement proceedings by the lessor or a court decision.
If the bank where the security deposit is deposited does not notify the lessor in writing that the lessor has filed a lawsuit against the lessee regarding the lease agreement within three months following the termination of the lease agreement or has initiated proceedings through execution or bankruptcy, it is obliged to return the security upon the request of the lessee.
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