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Complete glossary lessonNational exam concept

Security deposit

A security deposit is money a landlord holds to secure a tenant's performance, such as payment of rent and responsibility for damage beyond ordinary wear, subject to the lease and applicable landlord-tenant law.

Official area

Property Management

Knowledge cluster

Property management

Learning sequence

Define, distinguish, apply, retrieve

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Exam purpose

Recognize the rule, then reject the nearest look-alike.

Georgia lens

Apply the state distinction only when the facts call for it.

Connected terms

Connected to 4 terms and one official content area.

What does Security deposit mean in real estate?

A security deposit is money a landlord holds to secure a tenant's performance, such as payment of rent and responsibility for damage beyond ordinary wear, subject to the lease and applicable landlord-tenant law.

How is Security deposit different from the closest exam answer?

A security deposit secures tenant obligations and may be refundable. Advance rent is payment for a future rental period.

What is the Georgia-specific rule?

Georgia law imposes handling, inspection, accounting, escrow, and return requirements that depend in part on the landlord and property. A broker holding deposits must also follow real estate trust-account rules.

Worked exam example

Scenario

A landlord documents the unit's initial condition, holds the deposit as required, and after move-out itemizes a lawful deduction for tenant-caused damage rather than ordinary wear.

Decision rule

A security deposit secures tenant obligations and may be refundable. Advance rent is payment for a future rental period.

What is the most common exam trap?

Trap correction

The landlord does not automatically own the deposit when received, and ordinary wear is not the same as tenant damage.

Memory cue: The landlord does not automatically own the deposit when received, and ordinary wear is not the same as tenant damage.

Original exam check

Apply the definition

Which statement correctly explains Security deposit?

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Recommended next complete lesson

Continue with Property Management complete lesson. It places this term inside the full rule, worked examples, exam traps, and mixed practice required for mastery.

Security deposit quick answers

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Editorial standards.

What is Security deposit?

A security deposit is money a landlord holds to secure a tenant's performance, such as payment of rent and responsibility for damage beyond ordinary wear, subject to the lease and applicable landlord-tenant law.

What is Security deposit commonly confused with?

A security deposit secures tenant obligations and may be refundable. Advance rent is payment for a future rental period.

How does Georgia treat Security deposit?

Georgia law imposes handling, inspection, accounting, escrow, and return requirements that depend in part on the landlord and property. A broker holding deposits must also follow real estate trust-account rules.