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george, Renter in Margate City, NJ

When are Realtor's fees, security deposit and first month due?

Asked by george, Margate City, NJ Wed Dec 12, 2012

My Realtor won't provide to the Landlord the lease contract I recently signed unless a security deposit, his and the listing Realtor's fees and first month rent are provided by bank check. Is this normal? I think the money should be paid only after the contract is approved, signed and finalized by both parties. What if the landlord does not approve, is not agreeable or changes his mind?

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Steven Tamburello’s answer
George,
I can speak for how the protocol is done by me, in the Cherry Hill area. Once a meeting of the minds is made, leases will then be prepared. This way everyone is in agreement before anything is signed. At that time the security deposit and first month's rent will be delivered to the landlord in certified funds. The lease would then be contingent upon a final walk through of the property just before you move in.
I hope this helps.
Steve
0 votes Thank Flag Link Wed Dec 12, 2012
Thanks Steven! Just for my own clarification, the security deposit and first month's rent will be delivered to the landlord in certified funds after he ALSO has signed the lease. Thanks!
Flag Wed Dec 12, 2012
I'm not sure how it works where you are, but Realtors here typically collect the application fee(s) and security deposit with the submission of the application. The application fee covers the background and credit checks, and have to be paid for that report to be run. We usually keep the security deposit (or the listing agent does) until the application has been approved. The security deposit is cashed when the lease has been signed by both parties. The first month's rent is due prior to move in.

Did you sign an approved lease, or is it just the application?
0 votes Thank Flag Link Wed Dec 12, 2012
Dear Carla, thank you for your quick reply. I did sign a lease which was provided by the listing agent to my agent. I also added some changes to it and corrected some mistakes. The owner leaves outside of the US, and it will take at least one week to have the lease back signed by him for final steps. In the meantime, I am asked to issue two bank checks to the owner for the first month and security deposit; one bank check for each of the two involved agents without knowing whether the landlord will authorize the changes to the lease and sing the agreement. I understand the financial involvement on the side of the agents and the owner but I don't feel protected enough if something should go wrong. Thanks for your opinion!
Flag Wed Dec 12, 2012
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