Deposit Terms & Conditions
Please email us at email@example.com, phone us on +49 (0) 89 2555 2966, or send us a letter to Rentseed UG, c/o BASE Co-Working, Blütenstraße 15, 80799, Munich, Germany.
Rentseed UG (hereafter called 'mietwise') acts as an Agent on behalf of a subsidiary of Credit Mutuel Arkea, Mangopay SA (hereafter referred to as 'banking partner'), to provide users with payment initiation and account information services across the EEA and Switzerland. mietwise is neither a credit institute nor a financial services company according to the German Banking Act (Kreditwesengesetz, KWG), nor an independent regulated payment service provider according to the German Payment Services Supervision Act (Zahlungsdiensteaufsichtsgesetz, ZAG).
'Deposit' means the sum of EUR to be paid by the tenant, or such sum as required in terms of Clause 2.3;
'Deposit Account' means an account held in the name of the tenant in terms of Clause 2;
'Deposit Agreement' means the terms of this agreement agreed to by the landlord and tenant;
'Deposit Funds' means the balance of the deposit account at any given time;
'Deposit Manager' means Rentseed UG (hereafter called 'mietwise');
'Lease' refers to the lease agreed to between the landlord and the tenant;
'Parties' means the landlord and the tenant;
'Term' means the term of this agreement, which has no designated time limit;
'Working Day' means any day other than a Saturday, Sunday or a local statutory holiday in Germany.
'Payer' means the payer of the funds; either the tenant or the landlord.
'Payment method' means any payment method offered by mietwise, i.e. SEPA Direct Debit or SEPA Bank transfer.
'Account' means a mietwise user account, belonging to either of the parties.
'Transaction fee' means any fee applied to a payment by mietwise.
2. Deposit account and deposit fund
- The payer will pay the deposit to the deposit account which will be held, subject to the provisions of this deposit agreement, throughout the term in the tenant’s name. The way in which the deposit funds are managed, are in-line with German regulation BGB §551.
- The deposit funds will be held in trust for both the landlord and the tenant in the tenant’s name, with the landlord having the ultimate right to apply the deposit funds in accordance with the provisions of this agreement.
- The Tenant will be required at all times to maintain the deposit funds in an amount not less than the deposit, and if the landlord withdraws any part of the deposit funds in accordance with the provisions of this agreement, then the tenant will lodge with the landlord within ten (10) working days after demand such further sum as represents the difference between the deposit funds and the deposit at the time in question.
3. Provision and account details
- Provided by the deposit manager, the landlord and tenant will be granted access to a personal online account, which allows the landlord and tenant to access the following information;
- details of the landlord and tenant;
- details of the deposit, deposit account and deposit funds;
- any transactions made by either party; and,
- any deductions added by the landlord
- The landlord intends to make payment to the tenant of the deposit funds in accordance with Clause 5, provide the tenant with an online deposit statement showing all details pertaining to the deposit and withdrawals made by the landlord in accordance with the provisions of this agreement.
During the term of this agreement, partial withdrawals can not be requested by either party. However, the landlord may, at any time, note a deduction from the deposit account and reserve to themselves all or any part of the deposit funds;
- on each occasion that the tenant fails to pay rent or other sums for which the tenant is responsible in terms of the lease or under this agreement, an amount equal to such rent or other sum that is considered due; or
- on each occasion that the tenant damages the property beyond normal wear and tear, the tenant is responsible in terms of the lease or under this agreement, an amount equal to such sum is due to remedy such damage.
5. Refund of deposit funds
The landlord will release to the tenant the deposit funds within thirty (30) working days after;
- the expiry of the term, provided that the tenant has complied with their obligations under this agreement;
- as requested by either the landlord or tenant (at the approval of the landlord); or
- earlier date as the landlord may, at their sole discretion determine.
Any portion of the deposit funds added as a deduction by the landlord will be paid out when a deposit refund is initiated.
In the event that the deposit was paid via Direct Debit by the tenant, the deposit funds will be returned to the same bank account from which the original deposit funds were paid. If the bank account is to change, the deposit funds can be returned to another bank account of the tenant, provided the name of bank account owner matches the name of the account holder.
In the event that the deposit was paid via SEPA bank transfer by the tenant, or if the deposit was paid by the landlord by any payment method; either party may add the tenant’s bank account details via their account that the deposit funds should be returned to, provided the name of bank account owner matches the name of the account holder.
6. Deposit refunds and early repayments
- Upon the request of a tenant, the deposit manager will need confirmation from the landlord, either via their account or direct email to the deposit manager, that a paid deposit is to be refunded. If the landlord has not confirmed a refund instruction, the tenant will need to pursue with their landlord directly.
- In the event that the landlord confirms the deposit funds were paid in error, the deposit manager may refund the deposit funds to the payer. Refunds do not include the transaction fee, unless at the discretion of the deposit manager.
- In the event that a tenant does request a refund directly via their bank, having paid by SEPA Direct Debit, both parties will be notified. The landlord will then need to pursue the matter directly with the tenant. If the deposit manager incurs any costs due to this event, the tenant will be required to fully compensate the deposit manager financially.
- In the event that a duplicate payment is made for a deposit, the deposit manager will refund the second payment, including the transaction fee, to the payer.
- All refunds for deposits paid via SEPA Direct Debit, with the exception of duplicate payments, are subject to a six (6) week cool-off period from the date of payment.
7. Landlord’s Remedies
The tenant acknowledges that this agreement and the holding by the deposit manager’s banking partner of the deposit funds in trust will be a matter entirely separate from the lease, and will not be a defence to any action for payment by the landlord.
- If the landlord disposes of their interest as the landlord under the lease, they will;
- assign to the party acquiring such interest the rights and obligations under this agreement; and,
- transfer to such party the deposit funds, by notifying the deposit manager of the request.
- The tenant is not entitled to assign their interest under this agreement.
In the event of alienation, the new landlord will need to themselves create an account with the deposit manager. If they refuse to do so, the remaining deposit funds will be returned to the tenant.
9. Transaction fees
- Landlord and tenant onboarding, deposit account opening and management fees will be borne at the expense of the payer, normally the tenant.
- In the event that the deposit account is opened and the deposit funds are credited by SEPA Direct Debit, the tenant will incur a cost of €5.00.
- In the event that the deposit account is opened and the deposit funds are credited by SEPA Bank Transfer, the payer will incur a cost of €5.00 plus 0.50% of the total deposit funds credited.
- In the exceptional circumstance that the landlord has already received the tenant’s deposit funds and will be crediting the deposit account on behalf of the tenant, the landlord will be liable for the above fees.
10. Interest and payment limits
- German laws stipulate that all rental deposits should earn interest customary of a savings account, and in-line with current interest rates (in line with BGB §551). As interest rates for Euro (€) deposits are currently negative, mietwise does not pay interest on deposit funds.
- Payments made via SEPA Direct Debit are currently limited to €2,995.00;
- however payments via SEPA bank transfer have no limit.
11. Role of the deposit manager
The deposit manager acts as an Agent on behalf of its banking partner. In doing so, the deposit manager’s role includes;
- Collecting landlord and tenant details on behalf of banking partners and financial regulators;
- Providing the necessary technical services to landlords, tenants and platforms to manage deposits, deposit accounts and deposit funds;
- Providing landlords, tenants and platforms with a digital interface and API to action the above; and,
The deposit manager does not, and is not required to, act in any way as a mediator between the landlord and tenant in the event of a dispute arising.
12. Liability of deposit manager
- The deposit manager holds no liability in regards to the performance of the lease agreed by both the landlord and tenant.
- The deposit manager holds no liability in regards to any withdrawals made from the deposit account by the landlord, which it will action when requested to by the landlord.
- If the tenant does have issue with any deduction made by the landlord, they should contact their local court to raise a dispute.
- Although the deposit manager provides the necessary means by which the landlord and tenant can effectively manage the deposit, deposit account and deposit funds, the deposit manager holds no liability in the instance that any of the parties fail to meet their own obligations.
- The deposit manager absolves itself of any and all liabilities that the parties may otherwise deem the responsibility of the deposit manager.
13. Final Provisions
- The court of jurisdiction for all disputes arising from the contractual relationship is Munich, Germany. However, mietwise is entitled to take legal action at the general court of the Parties.
- In the event that mietwise terminates its online service, all existing users will be notified via email; and users will be unable to set up new deposit accounts from the date of notification. Existing deposits will remain active until a refund request is initiated, for up to a period of 1 year, at which point both parties will be notified that the deposit is being refunded by mietwise within 30 days. Any deductions added up to that point will be paid out to the landlord before the balance is paid out to the tenant.
Correct as of 13 June, 2019