Paying before signing by Bank Transfer

perfect10

Little worried and wanted a bit of advice.
My daughter has found a flat and paid the agency fees to secure her room while credit checks are done. So far ok. She has met the house owner too, but the accommodation is being managed by an agency.
She is due to collect keys on Friday and has been asked to transfer the money for deposit and months rent in advance by Bank Transfer - she can only do this during her lunch break and is due to sign all paperwork and pick up keys on Friday evening. Am just a bit concerned as until she has contract/paperwork signed plus keys there is a large sum of money in the agents bank with no receipt? She has no way of getting to the agents until Friday night, they are not open Saturday. It is a new agent with little feedback so far?
She went into the bank to ask for advice but they were really unhelpful. I have looked at the company on Company House website - accounts are up to date.
Any suggestions would be welcome?

dimbo61

I could set up TOM and JERRY letting agents in the morning with no checks or qualifications.
take deposits off dozens of desperate people looking for somewhere to rent in say London and disappear with a couple of thousands of pounds.
At least your daughter is paying money into a bank account.
Could she pay with her credit card ?
Is the agent part of a registered body ? ARLA ?

perfect10

This is what worries me!!
Can't see ARLA on their website and have searched on the ARLA website so am presuming they are not part of this!!
They do have a number of properties advertised, she has been to their offices, they are a limited company - have checked this out!

newbutold

Personally I would pay at time of signing & key collection. Will they not accept a bankers draft.

johnmcga

If possible, pay when she goes in to sign. Many agencies will accept debit cards on the spot (they might have to phone for authorisation and you might need to show extra ID, but if the money's in the account it'll go through fine).

If all else fails, can you pay cash?

Having that, I paid for our last rented place in exactly the way you describe. It was a risk, but a tiny one - our letting agent was well-established and had a decent reputation.

perfect10

Never thought of bankers draft? Will get her to ask that one - I agree she should pay at time of signing, she has been told she can't pay by debit card, she doesn't have a credit card and can't get there until after banks have closed!

wanting_an_easy_life

Interesting. On our new place, conditions of being able to sign the tenancy agreement were that the money had to be cleared 48 hours beforehand, no exceptions.
Yes, my LA is an ARLA member, they are well known and respected in the area too (they actually mostly deal with commercial property). They also have absolutely no card services whatsoever.

perfect10

Yes think it is something about money cleared before tenancy agreement signed and as bank transfer is instant this is why it is used - I think with card services - companies pay commission on amounts that are paid through these so can understand why they don't want larger amounts paid in this way.
The website companies where the flats are advertised do try to research these agents so intend to contact one tomorrow to find out a bit more. they do have quite a few properties advertised.
Really appreciate all the comments - thanks

G_M

I don't really understand this - the agent's position, not yours!

As a landlord there is no way I would hand over keys and give possession of my property until
a) all paperwork complete AND
b) all payments (rent, deposit) cleared.

But payment before contract? Why? A contract (tenancy agreement) is a legal document which commits each party to a future act (eg paying rent!). You sign it, then you comply with the terms of the contract.

You don't hand over cash, with no legal contract in place!

perfect10

I know - it is just the way it has worked out, my daughter has started a new job and can't get any time off to do this during bank hours as then she would have been able to agree contract nip accross the road to the bank - transfer money and then complete the contract!

wanting_an_easy_life

G_M, I appreciate your position, as a LL, you would probably be reasonable about this.

I guess the point for me is that if I want to pick up the keys as I sign the contract, they want to know I'm not going to simply squat (although this is probably irrelevant these days).

I can assure you, it's normal practice for LAs to do this now.