Good Faith Deposits: A Part of the Process or a Despicable SCAM?

Unreal Estate

I am often asked by clients about “good faith deposits” and whether they should be skeptical about providing a deposit when submitting an application for an apartment. The answer is, it depends. If the deposit is going to the landlord, that is likely above board. However, if the deposit is being paid to the broker, your skepticism is well founded and you should be prepared to ask MANY questions. I will prepare you for both scenarios…

Landlord requires a “Good Faith Deposit”: In fact, there are landlords both large and small which ask for a “good faith deposit” in order to take an apartment “off the market” for a period of time (48 to 72 hours typically) while they work to approve an application for rent. A landlord’s reasoning behind requiring a deposit is to ensure you are serious and committed to moving forward if approved so they don’t pass…

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