Estate agent changing terms - getting holding deposit back?

mwjackson

Hi,

We submitted an offer to rent a property 2 weeks ago, which was accepted and we have it in writing via a PDF document from the agent. We paid a 1 week holding deposit, plus an extra £100 fee for a reference check.

Since performing the reference check, the estate agent has now started saying the owner wants higher rent & rent reviews put in place. We verbally made an initial offer for a small increase as a sign of goodwill, which was rejected, and we have now reverted back to offering only the original terms that were accepted in writing.

The estate agent is now delaying presenting any contracts, saying the owner is away on holiday.

What are our avenues for withdrawing and getting the holding deposit back? The only thing in writing we have currently is the acceptance of the initial offer and its terms. Can we somehow we force the estate agents hand either way as its been 2 weeks now and we need to sort out our accommodation sooner rather than later.

00ec25

a holding deposit is not some sort of national agreement, you paid money to the agent on the basis of agreeing to a set of terms and conditions relating to that deposit

the circumstances under which you are entitled (or more likely not) to get a refund are set out in the contract / T&C which you signed... go read them becuase we can't see them for here!

mwjackson

That's not my understanding:

adviceguide.org.uk/wales/housing_w/housing_finding_a_place_to_live_e/finding_accommodation.htm#h_deposits_and_premiums

It clearly says:

In England, Wales and Northern Ireland, a landlord or accommodation agency can ask you to pay a holding deposit when you agree to rent a property but have not yet taken up the tenancy. This deposit will probably be deducted from the security deposit you pay when you move into the property (see under Security deposits).

Before making any payment, you should be sure you want to take up the tenancy as a holding deposit cannot be returned unless you are unable to move in for reasons beyond your control. Examples of this are if the landlord asks for more rent than was originally agreed, or the accommodation is not ready on the date the tenancy is due to begin.

If your agreement says that the holding deposit is non-refundable, you may be able to challenge the fairness of this term in certain circumstances. It may be unfair if it doesn't allow for the holding deposit to be refunded when:

the landlord isn't out of pocket because of your cancellation and the property is still on the market to be rented, or
the landlord cancels the agreement without a reason or for a reason which isn't your fault.

At any rate, the T&C's we signed state that:

- if the tenancy does not proceed due to your references not meeting our criteria or if you have given misleading or incorrect information, the holding deposit will not be refunded

- should you or any proposed joint tenant change your mind and/or withdraw for any reason, the holding deposit will not be refunded

- if the landlord decides to withdraw for any reason, or is unable to enter into the tenancy, we will refund the holding deposit minus the referencing costs which is an outsourced expense.

Now we are still happy to proceed at the agreed terms originally, and feel the agent is being unreasonable in delaying the signing of contracts until as late in the day as possible. We have done nothing wrong, paid all fees asked, submitted all documents required but are still subject to these guys trying to screw us for more money than originally agreed in writing?

How would could we approach them in a manner which forces the situation to be resolved?

ie. either we sign the rental contract, or we get our money back?

Annie1960

Write to them and state that you want to proceed with the property on the basis you agreed, or if they have changed their mind they should return your holding deposit.

rpc

Annie1960 wrote: »

Write to them and state that you want to proceed with the property on the basis you agreed, or if they have changed their mind they should return your holding deposit.

And referencing fee!

This whole "charge referencing fees and then withdraw" is a bit of a scam. What's to stop them doing this with a zillion tenants and pocketing the reference fee?


OP - ask them for a tenancy on the original terms by X date or a refund of ALL monies paid. If that doesn't happen, send a letter before action. Then put a claim in to the county court.

Annie1960

rpc wrote: »

And referencing fee!

This whole "charge referencing fees and then withdraw" is a bit of a scam. What's to stop them doing this with a zillion tenants and pocketing the reference fee?


OP - ask them for a tenancy on the original terms by X date or a refund of ALL monies paid. If that doesn't happen, send a letter before action. Then put a claim in to the county court.

Yes, sorry for the omission, include the referencing fee.

You are still willing to go ahead on the terms agreed.

The LL or LA want to change the terms, so they should not benefit financially from this.

Try and see if they will be reasonable before threatening court action.