Help reduce risk
We explained that the purpose of collateral is to reduce the landlord’s risk to the tenant. If we distill the definition, we will come to the conclusion that this is only financial risk.
And if it seems to you that this matter is obvious then it is not.
After all, there may be risks on various levels that are not ‘money’.
A tenant cannot be forced to fulfill his obligations under the sale agreement and he cannot be forced to live where he does not want to.
All that can be done is to estimate in money how much money is the landlord entitled to if the tenant has decided not to live in the apartment.