Commercial Office Space Security Deposit

2 Replies

Someone placed a hold on my office space with a security deposit (1 1/2 mo. rent) but has not submitted any of the paperwork that I need to move forward with signing the lease including:

-proof of income

-proof of commercial liability insurance

-CP 575 form from the   IRS showing the business entity and tax id#

-paperwork from the town for their business license

I originally met with her in the beginning of August and have met with her several times to explain all of this to her and she insists she will get it.  I gave her a deadline of August 31.  My question is, if she fails to submit any of the required paperwork can I keep the security deposit since she has not acted in good faith in obtaining any of the documents needed to open a legitimate business?

I'm not farmiliar with commercial real estate, but if this was residential, I would say if she did not sign a holding agreement stating that a deadline and penalty, you have to give it back. If she signed an agreement, refer to that.

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