Rental holding deposit - refundable?

Tennis_Pete

Hi guys,

Really appreciate your help with this, thanks so much in advance if you have any advice.

I paid a £1,000 holding deposit to take a flat off the market with intention of moving in. However, a week later I have received the tenancy agreement to sign and it's weighted so heavily in the landlords favour.

How could I claim the deposit back if I feel the agreement is unfair and they are unwilling to change certain terms? As an example, the actual deposit is not held in an independent organisations account which I thought was the norm these days.

Thanks again!

Pixie5740

What terms were agreed for the holding deposit before you handed it over? Did these terms say under which circumstances the holding deposit would be returned to you because on the face of it you paid a deposit to hold the property, the property was held and now you've changed your mind not the landlord.

Tenancy deposits are required to be registered with a scheme within 30 days of it being paid to the landlord. What you describe however is a holding deposit rather than a tenancy deposit. That said £1k seems a lot just to hold the property.

Out of interest why do you think the tenancy agreement is heavily weighted in the landlord's favour?

saajan_12

Tennis_Pete wrote: »

Hi guys,

Really appreciate your help with this, thanks so much in advance if you have any advice.

I paid a £1,000 holding deposit to take a flat off the market with intention of moving in. - wow, that's a lot!
However, a week later I have received the tenancy agreement to sign and it's weighted so heavily in the landlords favour. This is likely subjective. You could have asked to see the agreement before placing a deposit.

How could I claim the deposit back if I feel the agreement is unfair and they are unwilling to change certain terms? -
they don't have to change terms. In what way do you think it is unfair? It would have to be grossly one sided and away from industry norms to be considered fraud, otherwise you chose to place a deposit and in return the LL took it off the market. No refund due. As an example, the actual deposit is not held in an independent organisations account which I thought was the norm these days. - A holding deposit doesn't have to be protected. A security deposit for the tenancy does have to be protected, but there are 'insurance schemes' available where the LL keeps the money, but the scheme protects it in return for a fee and will guarantee return of the money to you.


Thanks again!

As a default, holding deposits are not refundable: you paid money, the LL agreed to hold the property for you. If you choose not to go ahead, the LL has lost advertising time, you lose the money.

If the agreement was grossly unfair, you MAY have some claim for fraud, this is unlikely.

G_M

Just to add to the above replies, it may be that some of the clauses you object to are in fact unenforcible so can be ignored.

If you quote the relevant clauses to us, we can comment.