Offsetting and security deposit Clause Samples

Offsetting and security deposit. 3.4.1 The lessee’s claims as a result of defects in the rental property cannot be offset with the rent. If necessary, the lessee must proceed in accordance with art. 259b OR and can deposit the rent in accordance with art. 259g OR. The same shall apply if the lessee wants to assert a rent reduction. Offsetting shall be admissible if the lessee has had a defect in the rental property rectified at the costs of the lessor after providing an unsuccessful written deadline to the lessor (art. 125 b lit. b OR). 3.4.2 The lessor shall be entitled to demand a security deposit from the lessee in the form of money or securities. The lessor must deposit the security deposit in a bank in a savings account or a securities account that is held in the name of the lessee. The bank may return the security deposit only with consent of both parties or based on a legally valid payment order or a legal verdict. If the lessor has not legally asserted any claim against the lessee within one year after the end of the leasing relationship, the lessee can demand refund of the security deposit from the bank. When leasing living spaces, the lessor may demand a maximum of three monthly rents as security deposit. 3.4.3 The lessee shall be entitled to offset his/her deposit with the rent or other claims of the lessor. 3.4.4 The lessor must render account of the received security deposit at the latest within 4 months after the lessee moves out. The deposit may not be offset with claims that are disputed by the lessee. 3.4.5 If the lessor does not issue an invoice within a period of 4 months or if it does not legally file a suit within 6 months from the invoice date for claims that are disputed by the lessee, the paid security deposit may no longer be retained and must be reimbursed.