Master-Lease Deposits Move to Bank Trust Accounts as Lixing and First Bank Sign Agreement on Nov. 9
Lixing, a unit of Taiwan Financial Asset Service Corp., has signed with First Commercial Bank so that tenants' deposits in master-lease cases are held in bank trust rather than by the operator.
- Lixing and First Commercial Bank signed an agreement on Nov. 9, 2026, under which master-lease tenants' deposits are held in full in bank trust.
- Taiwan Financial Asset Service Corp. said this is the first time a master-lease and property management operator has placed deposits fully in trust.
- Kung Wen-ping, chairperson of Taiwan Financial Asset Service Corp., said deposits are returned only after the lease ends and the handover inspection and settlement are completed.
On Nov. 9, 2026, Kung Wen-ping, chairperson of Taiwan Financial Asset Service Corp., and Chiu Yueh-chin, chairperson of First Commercial Bank, signed a Full Deposit Trust agreement. From now on, when Lixing, a wholly owned subsidiary of Taiwan Financial Asset Service Corp., takes on master-lease cases, the full amount of the deposit paid by the tenant will be held in a dedicated account set up with First Commercial Bank's trust department.
Kung said that when the lease is signed, the deposit is agreed to be remitted directly into that account, kept separate from the operator's own working capital. Only after the lease term ends and the tenant has completed the handover inspection and settlement is the refund made under the contract. In addition, Lixing will still pay the deposit owed to the landlord under the master-lease contract. Taiwan Financial Asset Service Corp. said First Commercial Bank developed this deposit trust product specifically for master-lease and property management operators.
Citing Ministry of the Interior statistics, Kung said there were 666 residential rental disputes that went to mediation nationwide in the first quarter of 2026. Of these, 41% were deposit return disputes, 32% were landlords terminating leases early without cause, and 27% concerned who is responsible for home repairs.
Kung also said the current standard residential lease contract provides that a deposit may not exceed 2 months' rent. In most of the market, lessors hold deposits themselves, and the law does not require that they go through a trust.
Taiwan Financial Asset Service Corp. launched its master-lease and property management business in October 2025. Kung said the company already works with 8 state-owned banks and 3 private banks on elder-care trust business. First Commercial Bank said it will extend its trust services to protecting rental rights, revitalizing housing resources, and meeting older people's needs for real estate revitalization and elder care.
People planning to rent through a master-lease and property management operator can ask before signing whether the deposit goes into a trust account, and what the conditions are for its return after the lease ends. They can also compare their own lease against the standard contract's cap of 2 months' rent for deposits.
Quick quiz
2 questions; pick an answer to see the explanation
- According to Kung Wen-ping, how many months' rent is the maximum deposit under the current standard residential lease contract?
- Citing Ministry of the Interior statistics, Kung Wen-ping said which category accounted for the largest share of residential rental disputes in mediation in the first quarter of 2026?
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Original：經濟日報 · We only post summaries and key points. Read the original for the full story.
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