Using security deposit as last month's rent?

Anything related to legal issues, immigration, problems, regulations, tax issues, or any other law or legal related problem in Chile. Moderated By A Chilean Attorney.

Moderator: Zvalenzuela

User avatar
admin
Site Admin
Posts: 17377
Joined: Sat Aug 26, 2006 11:02 pm
Location: Frutillar, Chile
Contact:

Re: Using security deposit as last month's rent?

Post by admin » Thu Jul 19, 2018 5:07 pm

Depends on the type of contract and what it is for. When in doubt get it notarized.

Real estate always must be notarized.
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
For more information visit: https://www.spencerglobal.com

From USA and outside Chile dial 1-917-727-5985 (U.S.), in Chile dial 65 2 42 1024 or by cell 747 97974.

coffeecup333
Rank: Chile Forum Tourist
Posts: 11
Joined: Wed Jul 18, 2018 12:35 pm

Re: Using security deposit as last month's rent?

Post by coffeecup333 » Thu Jul 19, 2018 6:20 pm

admin wrote:
Thu Jul 19, 2018 10:01 am
coffeecup333 wrote:
Wed Jul 18, 2018 4:38 pm
Gloria wrote:
Wed Jul 18, 2018 2:06 pm
Could you please explain this sentence?
when he refused-basically he wants money for the apartment and sees no reason to have good will.
Apparently the apartment was rented before us and there were bills that were not paid. All the bills continued to come to the apartment and he never responded to repeated attempts about him paying them. So I finally paid them and deducted them from the rent. There are other things but it is clear the overall message is that the only thing he seems to care about is that he gets his rent monthly, not the fuller picture of having a working relationship with his on-time rent paying lessees.

Tbe whole thing smells really bad.

Have you seen a title on that apartment?

There is a scam around where people rent apartments they dont own. One of the red flags is the owners not wanting to sign a contract in front of a notary. A rental contract, protects land lords more than anything, so why would a legit land lord not want to sign one in front of a notary?

We have had a couple gringos nearly get sucked in to one of these, before we waved them off that something was not right. One guy even had a name that was very similar to the owner on the title.

That is just one reason why you notarize such contracts. Establish identity of the parties.

Other reasons often is they are trying to slip in contract terms that are illegal, etc.


I've seen the unpaid tax bill for the apartment had their name on it so I know it is theirs-though at the signing I did not. Thanks for bringing these types of scams to my attention-definitely something to be wary about for the next time around.

coffeecup333
Rank: Chile Forum Tourist
Posts: 11
Joined: Wed Jul 18, 2018 12:35 pm

Re: Using security deposit as last month's rent?

Post by coffeecup333 » Thu Jul 19, 2018 6:24 pm

admin wrote:
Thu Jul 19, 2018 5:07 pm
Depends on the type of contract and what it is for. When in doubt get it notarized.

Real estate always must be notarized.
A very good point-thank you. We were just very new and never had to have it done back home. I got mixed reviews about getting a lease notarized when I asked around after the fact. The owner and his wife said that Chileans like to notarize everything so it is a formality, not a necessity. But I will insist on it the next time around.

coffeecup333
Rank: Chile Forum Tourist
Posts: 11
Joined: Wed Jul 18, 2018 12:35 pm

Re: Using security deposit as last month's rent?

Post by coffeecup333 » Thu Jul 19, 2018 6:27 pm

Gloria wrote:
Wed Jul 18, 2018 8:14 pm
We are not planning on renewing the lease with them but is it possible to use the security deposit as last month's rent? The lease says we can not but I am told he can't enforce it being that it's our last month and is quite common in Chile to do this.
As a norm it should be returned (or not) to the renter after the inspection of the premises in case of damages etc as it is in the US, however in Chile most people have use of it as payment of last month of rent for reasons already explained earlier.

Can we move out at the end of the apartment without a letter saying we can move (I heard we need this letter)?
No, you cannot. You must send a certified and notarized letter cancelling your contract 2 MONTHS in advance, so by the end of this month to be safe you need to do this.

me go to a notary to notarize our rental agreement so I hope this doesn't affect anything legally.
Whether or not this contract was notarized, you are still liable to the contract.
Next time, if a landlord doesn´t notarize a legal agreement, don´t do business with him or her for your own protection.
Please keep in mind that chileans as a whole like to live "at the edge of the law" and whether the laws are written in the Civil Code of the Republic of Chile, they piss on it anyways.

Gloria, the rental lease in the wife's name lists the apartment we are living in as their address. They never lived there but it was always an investment property so where can I send this certified letter? Is it valid to email them since the contract only says to give 60 days notice of non-renewal?

coffeecup333
Rank: Chile Forum Tourist
Posts: 11
Joined: Wed Jul 18, 2018 12:35 pm

Re: Using security deposit as last month's rent?

Post by coffeecup333 » Thu Jul 19, 2018 6:32 pm

GAminer wrote:
Thu Jul 19, 2018 4:45 pm
I was under the impression that if just about any document was not notarized, that it was not considered legal? Jobs, cars, real estate all required a notary at some point along the process. If that is the case you could just leave whenever you wanted. Everyone I know, chilean and foreign have told me to use the deposit as the last months rent because the owner will not return it. The bills you can pay online more than likely minus the gastos comunes, for those just average the last 3 months and deposit that to the owner.
I like this idea the best. But how would I do this? Just email him on the last month of the contract during the 5 days that rent would be due and let him know to use the security deposit? I can already see his reaction to this. Unfortunately with bad timing, I will also be out of the country for a couple weeks during this time. We changed the locks when we moved in but can he do anything to the place or our things? Do I tell him I will average the 3 previous gastos and deposit that to the owner the following month? Thank you for your input.

Post Reply