Getting a holding deposit back

Becca87_2

Hi. I hope someone can help me!

My partner and I saw a house on a letting agent's website two weeks ago that we liked the look of. We arranged to view it, but the appointment was cancelled and rescheduled three times by the agent. The pictures of the house looked promising, and we didn't want the house to go before we had a chance to look at it, so we went into the agent's office last week and put down a £200 holding deposit before viewing. We then went to see the house on Friday, and it was a big disappointment! It's not in a state that's fit to move into, and the landlord is apparently prepared to do very little to it. The woman who showed us round listened to our concerns about the condition of the property and told us to go away and think about it. She said that if we change our mind, we should go into the office and get our holding deposit back. However, after reading things online I'm not sure we will actually be able to get the money back.

Where do we stand here? £200 is a lot of money to lose! We can't afford to let it slip away, especially as we've since viewed a different house, fallen in love with it and need to pay a bond and first month's rent when we move in.

Thank you in advance.

wealdroam

Firstly, you need to go back to the letting agent and let them know how diasappointed you were and ask them for your deposit back.

Why do you think you might not get your deposit back?

The person who showed you round said you would get it back.
So what's the problem?

Did you perhaps sign an agreement to rent the property or something?

pug_in_a_bed

hmmm, holding deposits are difficult as they are what they say - to hold the property for yourselves. As far as I am aware they can be hard to get back, as this isnt like the security deposit you might pay later.

Have a read below, might be worth asking on the llz forum as its very good

From the landlordzone site

The holding deposit shows good faith on the part of a prospective tenant enabling the landlord to take further action in the confident knowledge that the applicant is serious and fully committed to the property:

The holding deposit shows good faith on the part of a prospective tenant enabling the landlord to take further action in the confident knowledge that the applicant is serious and fully committed to the property:

Cancel any advertising for the letting
Tell other applicants that the tenancy has been taken therefore avoiding "stringing them along for too long", though you should continue to take details just in case
Prepare a letting agreement
Take up references
Carry out credit checks (some landlords make a charge for this - administration fee, agents almost always do).
The holding deposit is particularly appropriate where there is good demand for the property

The holding deposit is particularly appropriate where there is good demand for the property and the landlord may lose other prospective tenants if the applicant causes unnecessary delay or declines the tenancy at the last minute.

In the event of the tenancy agreement falling through the landlord may well decide to keep this holding deposit as recompense for the inconvenience and cost caused, but this should be pointed out and stated in writing to any prospective tenant at the outset, along with a written receipt for the deposit held - you need a holding deposit agreement - see Holding Deposit Agreement - Free dowload.

The amount of any holding deposit should therefore reflect in advance the reasonable or approximate amount of the landlord's loss in the event of non-completion of the agreement.

Once the agreement is signed the holding deposit would normally then form a part of the Security Deposit, to be held by the landlord or the agent throughout the term of the tenancy. If you decide not to take a Security Deposit, the holding deposit should be returned.


The bit I've underlined might help

Forwandert

Hopefully the letting agent will give you your deposit back as agreed with the person who showed you around, however what do you think a deposit is for? if £200 is a lot of money to lose why did you hand it over to someone without viewing the property? your post is a little vague on the amount of time the property has been held for you also how long has it actually been held?

How did the situation of leaving a holding deposit arise, was it mentioned by the LA or yourself?

Your question might also get a better response in the House Buying, Renting & Selling section of the forum.