Q: What makes a rental agreement binding?

A: A rental agreement, like a purchase, requires a kinyan (act of acquisition) to make it binding. In general, the same forms of kinyan that apply to purchases apply to rentals, with some differences (C.M. 190:1; 195:9; 331:1; 307:2).

One form of kinyan for real estate is kesef, money. Thus, a person who gives money to confirm a real-estate rental makes the agreement binding. The Acharonim dispute whether money given as a non-refundable deposit, as commonly practiced, is meant to confirm the agreement as binding or only as a fine if the renter retracts (Pischei Teshuvah, C.M. 207:13; Beis Shlomo, Y.D. 187).

Similarly, there are disputes whether monetary payments other than cash are included in kinyan kesef: a personal check or loan obligation issued by the renter (Machaneh Ephraim, Kinyan Maos #5; Ketzos 190:1, 39:8); a check from a third party or made out to “cash” (Shach and Ketzos 190:1); and payment by credit or debit card (Chazan Ish, C.M. 3:17; Machaneh Ephraim, Shluchim #15; Ketzos 195:9).