The Carvajal Group Blog

Why do some real estate leases require a down payment?

February 5th, 2010

When individuals begin a lease for a home or apartment, they often must pay a down payment. This payment serves a number of purposes.

One, it acts as a partial guarantee that the tenant will fulfill the terms of the lease. Also, it serves as a way to legally validate a contract. In most contract cases, the agreement does not become binding until one party offers consideration, and the down payment often acts as a form of consideration.

If you have questions about your lease, contact the Austin Real Estate company of the Carvajal Group at 512-419-7770.

Tags: Austin Real Estate · Austin Real Estate Agent · Austin real estate sale