Property Management

In NJ, a commercial landlord who withholds a security deposit beyond the time allowed under a commercial lease without justification:

AFaces no penalty since commercial leases have no statutory security deposit rules
BMay be liable for breach of contract, with damages including interest on the withheld amount and potentially attorney fees if the lease provides for it✓ Correct
CMust immediately return triple the amount
DIs reported to the NJREC

Explanation

Commercial security deposits in NJ are governed by the lease agreement rather than the Residential Security Deposit Law. A landlord who wrongfully withholds a commercial deposit may face breach of contract claims and damages as specified in the lease or under common law.

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