Deposit Holding Fee Dispute

Cotta

Hi All,

Due to work commitments I will be away from home for a period of time so I thought it maybe better to rent out my house rather than leaving it empty.
I left the process with an Estate Agent and they picked a suitable candidate around April 2nd who wanted to move in on May 1st but subsequently asked if they could have the 28th, 29th and 30th of April for free in order to move in, I agreed to this and a holding deposit of around £400 was taken.

On 26th of April the propose tenant advised the Estate Agent that they would not be moving in as they had decided to stay at their current abode. The Agent said he would not be refunding the holding deposit and suggested he would pass it onto me but the proposed tenant has threatened legal action.

My question is basically, am I entitled to this holding deposit or is the tenant in the right to demand it back?

Mortgage_Adviser

Was there any written agreement made that would specifically mention the deposit as being a holding deposit and being non refundable?

If not then it will be your/your agents word against their word and for the court to decide who is saying truth.

need_an_answer

was a tenancy agreement signed?

Did your agent do credit checks with the prospective tenant and charge for those

Was anything about the early move in date formally done in writing?

Without clearly defined written instruction I would think it very difficult to retain the deposit.

How much are you actually out of pocket with this?
I understand its flustrating when a tenant pulls out at the last possible chance but unless you can prove actual loss its difficult to take the holding deposit for any more than an agreed actual loss.

anselld

It is legitimate provided the terms of the holding deposit detailing it is not refundable was given in writing when it was taken by the Agent. Ask agent for the paperwork.

Cotta

Just spoke to the Estate Agent, it was within a contract that the tenant agreed to and signed.

Credit checks had been carried out along with reference checks etc.

Mortgage_Adviser

The OP has been left out of pocket as they will have the property untennated because of the initial tennants breaching the agreement.
Don't get frightened by them suing you, They can if they want. After they lose you can claim all the expences you have encountered eg legal fee, time of work etc.

Marvel1

Cotta wrote: »

Just spoke to the Estate Agent, it was within a contract that the tenant agreed to and signed.

There is the answer, I would also ask the EA for a copy.