Limitation  Contract, Lease, Or Agreement As A Security

Question Description

Limitation on amount of deposit: An owner or lessee may not require more than a sum equal to 1 1/2 times 1 month’s rental according to the terms of contract, lease, or agreement as a security for the use or rental of real property used for dwelling purposes. Whenever an owner or lessee collects from a tenant an additional amount of security deposit, the amount collected annually as additional security shall not be greater than 10 percent of the current security deposit.

1) Set forth the Implicit Purpose of (Policy behind) enactment of this Statute?

2) To which persons does the statute apply (i.e., what is the “scope” of the statute”)

3) What are the requirements of the statute?