Imagine that you find the property of your dreams and you are not able to make an immediate payment on it; do not think that the property is still there if you go to the bank within days to make a payment.
It happens ever so often that all of a sudden disappointment strikes when the property is no longer available because it is sold! If you are more or less sure that you want to buy or rent, you really should make a ‘security deposit’ to ensure that the offer will be taken-off the market and not being sold or rented to another person.
Even when you are not able to complete on the deal immediately or meet the datelines as stipulated by the seller or landlord (let’s say you want to start a rental period after 2 months.) you could still try to negotiate if the seller or landlord is willing to accept your terms rather than start looking for another proposition. Offering to pay a security deposit often helps the negotiations. In some cases the security deposit is refundable.
If you make a clear understanding regarding how and when you could claim your deposit, there is now risk that you loose it (e.g. when the seller or landlord cannot meet the terms.).