Leasing License Practice Exam

Which of the following is most likely to require a lessee to provide a security deposit?

1. A casual rental agreement

2. A written lease agreement

3. A verbal agreement

4. A property management contract

The correct answer is: A written lease agreement

A written lease agreement is most likely to require a lessee to provide a security deposit because it establishes a formal, legally binding relationship between the landlord and the tenant. In these agreements, it is common practice for landlords to request a security deposit as a form of protection against potential damages to the property or unpaid rent. The written nature of the lease ensures that both parties understand the specifics of the deposit, including the amount, the conditions under which it may be withheld, and the timeline for its return at the end of the lease term. In contrast, a casual rental agreement may not always include a security deposit, as it often lacks the formalities and legal commitments found in written leases. Similarly, verbal agreements can also omit such provisions, as they may not provide a clear, enforceable understanding about financial obligations. A property management contract typically addresses the terms of managing a property rather than the specific terms related to individual tenants, and it often operates under the umbrella of existing lease agreements, which might already stipulate the requirement for security deposits.