Non-refundable deposit?

waltergropius

Hi all

Last week I put down a £300 deposit on a flat to rent. Due to a change in my circumstances I've asked the letting agents if I can withdraw my application for the flat and they've told me that my deposit is non-refundable, so I would lose the £300. Just wondered if they have legal grounds to do that? Seems a bit harsh!

WG

Cannon_Fodder

What did you sign ?

waltergropius

Cannon_Fodder wrote: »

What did you sign ?

At the time I paid the deposit, nothing. I paid it over the phone then about an hour later I was emailed an application form, which I completed with all my personal details, along with landlord and employer details, then signed and returned by email.

Cannon_Fodder

What did the application form say about the deposit ?

waltergropius

Cannon_Fodder wrote: »

What did the application form say about the deposit ?

Nothing. The email contained two documents though - the other is a "Tenant Guide". I didn't read this at the time but, regarding the deposit, this document says:

A payment to indicate your commitment is required when you submit your application and is held against expenses. If your application is successful this payment will be deducted from your initial money.

The payment is non-refundable should your application be unsuccessful or withdrawn in certain circumstances, the details of which are set out in the confirmation letter*. Please note that this money in advance does not constitute a tenancy or offer of a tenancy but is required as proof of your serious intention to proceed.

*I have not received a "confirmation letter"

Cannon_Fodder

Well, they incur costs to run credit checks. You asked them to do so. £300 sounds steep to start with. But as for being non-refundable, it is probably fair.

"required as proof of your serious intention to proceed." - having a change of circumstance that you could not foresee 1 week ahead is hardly their fault, is it? If there were issues with the flat, or the advertisment for it was misleading, you may have a case. Not having the confirmation letter stopped you seeing the reasons allowed for refund. I doubt that "you changing your mind" would be one of them.

Always read the small print, in advance. You can hardly claim the protection of what might have been in any letters/attachments, if you cannot be bothered to read them...

waltergropius

Cannon_Fodder wrote: »

Well, they incur costs to run credit checks. You asked them to do so. £300 sounds steep to start with. But as for being non-refundable, it is probably fair.

"required as proof of your serious intention to proceed." - having a change of circumstance that you could not foresee 1 week ahead is hardly their fault, is it? If there were issues with the flat, or the advertisment for it was misleading, you may have a case. Not having the confirmation letter stopped you seeing the reasons allowed for refund. I doubt that "you changing your mind" would be one of them.

Always read the small print, in advance. You can hardly claim the protection of what might have been in any letters/attachments, if you cannot be bothered to read them...

True, I should have been a bit more careful. But they should have told me that the deposit was non-refundable when they took it from me over the phone - I wouldnn't have paid it otherwise. Also, the Tenant Guide document lists the various costs of references, credit checks, drawing up agreements, etc - these are completely separate to the deposit. I've told them I'm happy to cover whichever of these costs I've accrued but I still wouldn't get my deposit back. The bottom line for me is that I have not cost anyone £300, so I don't see how they can justify taking it from me. Hmmph!

MobileSaver

As you paid the deposit before you received the application form and didn't receive the confirmation letter, I'd call their bluff.

Write to them offering what you believe to be a reasonable sum for their work but request a refund for the remainder of the deposit. Give them a deadline for the refund and advise you'll otherwise instigate legal proceedings without any further reference to them.

tbs624

Tenants should walk away from LAs who use these "holding deposits".


As Mobilesaver says, they can only keep what is a "reasonable sum" for the work which they have undertaken to date.

A 3rd party "credit check" will cost any where between 15 and 50 quid but larger LAs will get discounts on these rate but you say that they charge separately for those checks anyway.

moromir

How many days was the property off the market after you paid your holding deposit to the time you told them you had changed your mind?

During this time the Landlord may have lost other tenants who would have proceeded.

waltergropius

moromir wrote: »

How many days was the property off the market after you paid your holding deposit to the time you told them you had changed your mind?

During this time the Landlord may have lost other tenants who would have proceeded.

Just short of two working days.