Advice needed on a tenancy bond

LordOslek

Good afternoon everyone. I have come on here looking for advice on what I can do with regards to a tenancy bond I have paid. I will start with the details.

A few months ago my mother was diagnosed as terminally ill. We were told she would have atleast 2 years to go, but unfortunatly in the last couple of months this has changed drastically. She is now expected to have less than 3 months to go. Now, because of the original diagnosis, me and my fiancee had decided to move in together in our own place, we found a lovely 2 bed terraced house for rent and I went for it through a letting agency. I paid the usual application fees for the reference checks and all that, they came back fine, I paid the bond on the 7th of this month and was due to pay the first months rent tomorrow and collect the keys and sign the tenancy agreement on Monday.

Obviously, this is no longer going to be the case due to my mothers ill health. I have spoken to the letting agency yesterday and explained everything, I apologised about it being so late and everything and they were fine with it. I was told on the phone when speaking to the agent that the bond was a non-refundable fee, to cover the LL's cost, etc... and the agent said due to the circumstances, he will speak to the LL to see what they decide with regards to the bond. As of today, I have not heard back, so I do not know what the LL has said, but at the moment I am just looking for advice as they have not said they won't pay the bond back.

Now I would be fine with them keeping it if I had just backed out (not something I would have done, the house was perfect for us) but because of what has happened, would they be legally allowed to keep the bond even though I haven't signed the tenancy agreement?

I know they have a certain amount of time to place the bond into a protection scheme, but since I paid it (7th) I have heard nothing about it being protected.

Any advice would be greatly appreciated as the bond money would help make life slightly easier for me staying with my mother and dealing with all her affairs.

Any questions, please ask and I will answer the best I can.

Thank you very much for your time.
~LO

G_M

What exactly is the 'bond'?

If this is a security deposit, held throughout the tenancy against any damage or rent arrears, then it is yourmoney,not theirs.

Since you have not even signed a tenancy agreement, let alone moved in, it should be returned in full.

However, if it is a 'holding deposit', to take theproperty off the market and hold it for you (until you pass vetting and sign the tenancy) then by withdrawing you would forfeit it (and it covers the LL's losses - he will now have an extended period with no rent whilehelooks fornew tenants).

Or, indeed, itmay be a 'fee', (eg to cover credit checks/references). This would be non-refundable.

LordOslek

G_M - Thanks for the reply.

There was never any mention from the LA about a holding deposit. The property was removed from rightmove (where I found it) after I had contacted them and paid the reference/credit check fee.

P.S - I don't know if it would matter, but I do have an email from the LA stating they had received the bond. From previously renting a flat, I assumed that the bond was the security deposit, held through tenancy with regards to damage or rent arrears.

Guest101

Well let's do a numebr crunch here.

Was this 'bond' a months rent (or a months rent + £100 as seems to be the standard)? When you went to sign the tenancy tomorrow, were you expecting to pay any other kind of deposit?

When you got the receipt, what did it say? And how did you pay the bond - by card?

This can help identify what this was for (but only to a certain degree of certainty)

LordOslek

Guest101 - I will try and answer the questions in order.

Yes the "bond" was equal to 1 months rent.

I was expecting to pay the first months rent when I signed the tenancy agreement and get the keys from the LA

I didn't get any reciept from them. I paid the "bond" via bank transfer.

Guest101

Final 2 quetions:

In the advert for the property was the deposit - 1 month's rent?
Did you ever get a copy of the tenancy? What does it say regarding the deposit, if u did see it.

I would be 99% sure that this was a deposit for the house, and as such is yur money. You never signed a contract to begin tenancy, and the bond should be returned immediately.

I would telephone them, asap, and tell them you expect the bond to be returned to yourself with-in 48 hours, or you will be forced to report the matter to the police.

Explain that they are in breach of S.2, S.4 & S.10 of the fraud act 2006.

http://www.cps.gov.uk/legal/d_to_g/fraud_act/#a07 this article may help clrify some points for you.

IF they still refuse, do go and report it to the police. You'll still get your money back + possibly compensation. And they'll now have a criminal record.

LordOslek

There was no mention of what the deposit was in the advert, I asked them on the phone prior to arranging a viewing.

I have not seen a copy of the tenancy agreement, I was due to go and read it through and sign it on Monday.

Also, what is S.10 of the fraud act 2006? I have had a read through the link and it jumps from S.9 to S.11.

Thank you for your help.

Guest101

Shame, would've been good to have evidence. But none the less, I'm 99% sure this bond was to be used as a deposit against the fixtures and fitting of the house, not as a holding deposit. (A holding deposit would not be 1 month's rent - and if it was then that would be used as the first month's rent, so why would you be asked to pay again?)

S.10 Cover fraud by a company body (IE Fraud by the LEtting Agent in the company sense, rather than the individual agent)