This Policy forms part of the Sofaree Host Terms and Conditions and is incorporated by reference into the Guest Terms and Conditions (Section 10). It governs security deposits collected by Hosts and the process for damage claims against those deposits. It does not govern booking cancellations or refunds of accommodation charges, which are addressed exclusively in the Host Cancellation and Refund Appendix.
1. Nature of the Security Deposit
A security deposit is an amount a Host may require directly from a Guest, separate from and in addition to the booking price paid through the Platform, to cover damage to the property or unpaid costs incurred by the Guest during their stay.
- The deposit is collected, held, and administered solely by the Host, not by Sofaree.
- Sofaree’s role is limited to publishing the deposit amount and terms as disclosed by the Host on the listing.
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Sofaree bears no responsibility for the collection, custody, or return of any deposit, except as provided in Section 7 (Sofaree’s Role) below.
2. Disclosure Requirements
A Host who requires a security deposit must disclose, on the listing, before booking:
- the deposit amount;
- the collection method and timing (e.g., cash on arrival, e-wallet transfer prior to check-in);
- the conditions under which deductions may be made.
A deposit requirement not disclosed on the listing prior to booking is unenforceable against the Guest.
3. Permitted Uses of the Deposit
A Host may deduct from the deposit only for:
- verifiable physical damage to the property or its furnishings caused by the Guest or their companions, beyond normal wear and tear;
- cleaning costs materially exceeding standard post-stay cleaning, caused by the Guest;
- unpaid charges the Guest agreed to on-site (e.g., additional guests, extended stay) that were not collected through the Platform.
A Host may not deduct for normal wear and tear, pre-existing conditions, or any item not documented under Section 5.
4. Damage Reporting Window
A Host must report any claimed damage to Sofaree, through the Dispute Resolution Center, within forty-eight (48) hours of the Guest’s check-out. Claims reported after this window will not be honored, except where the damage was not reasonably discoverable within 48 hours, in which case the Host must report within 48 hours of discovery and provide a reasonable explanation for the delay.
5. Required Evidence
A damage claim must include:
- dated photographs or video of the property condition prior to the Guest’s stay (where available) and after;
- an itemized description of the damage or unpaid cost and its claimed value;
- supporting receipts, repair quotations, or replacement cost estimates.
Claims lacking sufficient evidence will be denied or reduced to the documented amount.
6. Guest Right to Dispute
A Guest may dispute a damage claim through the Dispute Resolution Center (Guest Terms Section 9, the Redress Mechanism) within seven (7) calendar days of being notified of the claim. Sofaree will mediate between the Guest and Host and issue a written resolution within seven (7) calendar days of receiving complete submissions from both parties, unless extended for reasonable cause. Sofaree’s resolution does not waive either party’s statutory rights under Philippine law.
7. Sofaree’s Role
Sofaree does not hold, administer, or guarantee any security deposit. Sofaree’s role is limited to:
- publishing the Host’s disclosed deposit terms on the listing;
- providing the Dispute Resolution Center as a mediation channel for damage claims;
- issuing a written resolution recommending the appropriate deposit disposition.
Consistent with the Platform Responsibility Disclosure in the Guest Terms, Sofaree is not liable for a Host’s failure to return an undisputed or Sofaree-resolved portion of a deposit. A Guest’s remedy in such cases is against the Host directly, without prejudice to escalation through small claims procedure or other legal remedies available under Philippine law.
8. Relationship to Cancellations
A security deposit is independent of the booking price and is not affected by, and does not affect, the application of the Host Cancellation and Refund Appendix. A Host may not apply, withhold, or threaten to withhold a Guest’s security deposit as a substitute for, or in retaliation for, a cancellation-related refund owed to the Guest.
9. Prohibited Practices
A Host may not:
- require a deposit not disclosed on the listing prior to booking;
- request deposit payment through channels outside the Platform’s disclosed method, where doing so would constitute an off-platform transaction under Guest Terms Section 13;
- use the deposit, or the threat of withholding it, to pressure a Guest regarding reviews, ratings, or any other unrelated matter;
- deduct amounts exceeding the documented and evidenced damage or unpaid cost.
Violation of this Section may result in Host account suspension or termination under the Host Terms and Conditions.
10. Refund of Undisputed or Unused Deposit
Where no damage claim is filed within the window in Section 4, or where a claim is resolved in the Guest’s favor in whole or in part, the Host must return the applicable deposit amount to the Guest within seven (7) calendar days of the check-out date or the resolution date, whichever is later.
11. No Absolute Forfeiture
A security deposit may not be structured or enforced as an automatic, non-refundable forfeiture regardless of actual damage. Any Host policy purporting to do so is void and unenforceable to the extent it conflicts with Philippine consumer protection law.
12. Governing Law and Venue
This Policy is governed by the laws of the Republic of the Philippines. Any judicial action arising from or relating to this Policy shall be filed exclusively in the proper courts of the City of Calamba, Province of Laguna, to the exclusion of all other venues.
13. Relationship to Other Policies
This Policy must be read together with the Guest Terms and Conditions, the Host Terms and Conditions, and the Host Cancellation and Refund Appendix. In case of conflict, consumer-protective provisions shall prevail, as required by law.
