26 April If a tenant and landlord agree that the tenant is to pay rent in advance, is that a violation of the law limiting the amount of security deposit to two months' rent? April 26, 2017 By Cindy Sellers Transactions Involving Condos 0 According to the Real Property Article of the Annotated Code of Maryland, a security deposit is “any payment of money, including payment of the last month’s rent in advance of the time it is due, given to a landlord by a tenant in order to protect the landlord against nonpayment of rent, damage due to breach of lease, or damage to the leased premises, common areas, major appliances, and furnishings.” Section 8-203(b) states that a “landlord may not impose a security deposit in excess of the equivalent of two months’ rent per dwelling unit, regardless of the number of tenants.” Therefore, under no circumstances may a landlord collect more than two months’ rent as a security deposit. However, in our opinion, if a tenant offers to pay rent before it’s due, the landlord may accept it as a courtesy. We strongly advise the owner to have an agreement drafted to make it clear that any rent paid in advance is not a security deposit under Maryland law. The agreement should state that the landlord agreed to accept the advanced payment as a courtesy to the tenant and that the owner in no way required the tenant to pay the specified amount. The tenant should sign the agreement and a copy should be placed in the owner’s files. Related Posts Once the buyer/tenant signs the buyer/tenant broker agreement, must I give the buyer/tenant the Understanding Whom Real Estate Agents Represent form so that the buyer/tenant can acknowledge that I represent the buyer/tenant? Once the buyer/tenant signs the buyer/tenant broker agreement, must I give the buyer/tenant the Understanding Whom Real Estate Agents Represent form so that the buyer/tenant can acknowledge that I represent the buyer/tenant? Q: Once the buyer/tenant signs the buyer/tenant broker agreement, must I give the buyer/tenant the Understanding Whom Real Estate Agents Represent form so that the buyer/tenant can acknowledge that I represent the buyer/tenant? Agency My broker has informed me that under no circumstances may I contact the owners of property following my departure from the company and that any listing I have will remain with my current broker. My broker has informed me that under no circumstances may I contact the owners of property following my departure from the company and that any listing I have will remain with my current broker. Is my broker right? What is the difference between one party terminating the agreement and both parties executing a contractual release agreement? What is the difference between one party terminating the agreement and both parties executing a contractual release agreement? Once the seller/lessor signs the listing agreement, must I give seller/lessor the Understanding Whom Real Estate Agents Represent form so that the seller/lessor can acknowledge that I represent the seller/lessor? Once the seller/lessor signs the listing agreement, must I give seller/lessor the Understanding Whom Real Estate Agents Represent form so that the seller/lessor can acknowledge that I represent the seller/lessor? Q: Once the seller/lessor signs the listing agreement, must I give seller/lessor the Understanding Whom Real Estate Agents Represent form so that the seller/lessor can acknowledge that I represent the seller/lessor? Agency Comments are closed.