Deposit on Rented Flat

Jayne123

A young relative of mine viewed a flat yesterday and handed over a £400 deposit (given to her by her grandfather). She was given no documents to sign. After arriving home and having discussed it with her partner and grandparents she has decided she does not want to go ahead with the rental. Upon contacting the landlord she was told that he would not return the deposit.

As she has not signed a contract or any paperwork where it states it is a non-returnable deposit, surely she is able to get the £400 back? Could someone help please. Thanks.

gordonbennet

You're right. Having signed nothing and having changed her mind so quickly the landlord cannot claim to be in any way out of pocket. He is probably bluffing in the hope that you'll just walk away. I hope she has some sort of receipt?

Go back to the landlord and make the points above. If he still refuses tell him that you will be taking legal advice. Check things out with the CAB and be prepared to take it to a small claims court. It's fairly straight forward and not too expensive. Good luck.

Benji

I agree with Gordonbennet.

I would just add that for a contract to be binding, there has to be 3 elements:

1) A consideration (£s usually)
2) An agreement
3) A benefit

In this instance, there is clearly no benefit to the deposit payer so there is no valid contract. If it went to small claims, the landlord should lose.

Jayne123

Thank you.

I've just been speaking to her grandmother. Apparently she did not confirm she wanted the flat but the landlord said he would need a holding deposit. Her grandfather spoke to the prospective landlord over the telephone and gave him his bank account details and the landlord promised not to take the deposit out until he received confirmation that he was to do so.

However.....the money has been taken out (and there is no receipt). This was probably a bit naive to say the least, but the family have never really had any experience of this type of situation before and being her grandfather he wanted to help her out as much as he could.

may_fair

Jayne123 wrote: »

As she has not signed a contract or any paperwork where it states it is a non-returnable deposit, surely she is able to get the £400 back?

Yes, she's entitled to a refund.

She should write the LL a letter before action, stating that if he does not refund the deposit by a given deadline she will start a claim in the county court. (Keep copy letter and get a free certificate of posting).

If he doesn't pay up, she can start a claim via Money Claim Online. The claim will be allocated to the small claims track; court fees are low (and are added to the claim) and she doesn't need a solicitor - it's easy to DIY.

However, she will need evidence of having made the payment (e.g. receipt, witness, or bank record).

pmlindyloo

Jayne123 wrote: »

Thank you.

I've just been speaking to her grandmother. Apparently she did not confirm she wanted the flat but the landlord said he would need a holding deposit. Her grandfather spoke to the prospective landlord over the telephone and gave him his bank account details and the landlord promised not to take the deposit out until he received confirmation that he was to do so.

However.....the money has been taken out (and there is no receipt). This was probably a bit naive to say the least, but the family have never really had any experience of this type of situation before and being her grandfather he wanted to help her out as much as he could.

You will be able to use the bank statement details showing payment as a receipt.

ps Whoops! Too slow!

may_fair

Jayne123 wrote: »

Her grandfather spoke to the prospective landlord over the telephone and gave him his bank account details and the landlord promised not to take the deposit out until he received confirmation that he was to do so.

Do you mean that the grandfather paid the money into the LL's bank account?

If so, this is sufficient evidence (i.e. bank records showing the payment). But it may be that it is the grandfather who should make the claim against the LL.

Jayne123

I've just found out that it was actually the lettings dept from a local estate agency they've been dealing with, not a private landlord.

may_fair

Jayne123 wrote: »

I've just found out that it was actually the lettings dept from a local estate agency they've been dealing with, not a private landlord.

Therefore the claim is against the agent/whatever is the name of the bank account into which the money was paid, e.g. Acme Lettings Ltd.

nomoneytoday

Surely the whole point of a deposit is to secure the flat and reduce the risk of the OP changing their mind?

Jayne123

Thanks for your advice everyone. The agents have agreed to return the deposit. It should never have been taken from the bank account in the first place as it was not confirmed that she wanted the flat. :j