Urgent; is agent right to do this?

Out,_Vile_Jelly

I was under the impression that the holding deposit paid for the property to be taken off the market while paperwork inc credit checks got underway. The tenant loses the deposit if they change their mind after this point.

Never heard of gazumping in a rental- surely pointless unless there really is a serious lack of such properties in the area?

Demand your deposit back and tell them not to waste your time with such offers in future.

tek-monkey

Maybe a mate of theirs wanted it?

MissMoneypenny

haylibo wrote: »

they have come back with a 'too good to refuse' offer which he has accepted subject to us not trumping it.
xx

Maybe the agents are lying about all of this and are just trying to get a higher rent?

Not sure I would want to have any dealings with a letting agent like that.

Can't you view properties through another agent now?

DawnW

If you are not getting the tenancy, then ask for the holding deposit back. If any problems, speak to Shelter or local authority private tenancy relations officer, and get advice about how to reclaim it through the small claims court. Are the LA members of a professional association such as ARLA?

haylibo

Thank you everyone, sorry not to reply earlier..password problems :S.
What I really wanted was some clarification of the legal standing of a 'holding deposit' to see how strong our case was for pushing the rental through but we are now having a change of heart and have tonight let the agent know he's fine to let it go to the other party.
He sounded a little surprised, makes me wonder what his true motives were...

poppysarah

I would get your despoit back and then report the LA to everyone who'll listen.

BASFORDLAD

poppysarah wrote: »

I would get your despoit back and then report the LA to everyone who'll listen.

People dont understand holding deposits mean nothing lawfully, so nothing wrong has been done.

oldone_2

haylibo wrote: »

Thank you everyone, sorry not to reply earlier..password problems :S.
What I really wanted was some clarification of the legal standing of a 'holding deposit' to see how strong our case was for pushing the rental through but we are now having a change of heart and have tonight let the agent know he's fine to let it go to the other party.
He sounded a little surprised, makes me wonder what his true motives were...

Expect them to come back and say the 'other' party has dropped out; at which stage you should ask for your deposit back and find somewhere else.

adg1

haylibo wrote: »

What I really wanted was some clarification of the legal standing of a 'holding deposit' to see how strong our case was for pushing the rental through but we are now having a change of heart and have tonight let the agent know he's fine to let it go to the other party.
He sounded a little surprised, makes me wonder what his true motives were...

A holding deposit was originally designed to remove the property from the market whilst references were collected by the agents and credit checks were run on the potential tenants. If the refs came back unsatisfactory, or the tenant pulled out prior to contracts being done then they would normally lose their holding fee. If the landlord pulled out it would (should) be refunded.

Since landlords list their properties to rent with multiple agencies the holding deposit has become somewhat obselete. It should still remove the property from the market with the one agent but NOT the rest of them - you run the risk of being gazumped by a better offer through another agent. You are now at the mercy of the agents and how fast they carry out your referencing and paperwork.

Trading standards define a property as secured when both the landlord and tenant contracts are signed and the full deposit and 1st months rent have been paid. Until this point you have very little to stand on.

In your case, the agent has acted badly. You paid the holding fee to them in good faith and they continued to show the property to other prospective tenants, ultimately resulting in a better offer being placed.

BASFORDLAD: 'People dont understand holding deposits mean nothing lawfully, so nothing wrong has been done.' Nothing wrong, legally, has been done but ethically I would have an issue with them as they have lied to the OP.

It happens in my area that bidding wars can break out on a rental property, though to pay OVER the asking price just to beat off another offer must be a bit galling as you know that it isn't worth what you are paying.

Given their reaction to you telling them you are pulling out I would expect that the 'other' party has withdrawn their offer, or had a change of circumstances etc and has miraculously left the property open to you.

If this is the case go forward with open eyes to the agent and insist that the contracts are signed, bot yours and the landlords straight away and pay the deposit and months rent straight away. Don't hang around and you will secure it.

Hope that answers all your questions!