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Letting agency refusing to refund ANY of my holding fee

JohnnyWalker2001
JohnnyWalker2001 Posts: 9 Forumite
Fifth Anniversary Combo Breaker
edited 15 February 2019 am28 12:25AM in House buying, renting & selling
Hi there, I'm hoping I have some sort of leg to stand on here. I feel I am being unfairly charged by a letting agency, although I acknowledge that I am the one who has pulled out of an agreement.

Yesterday evening I visited a property with a letting agent (illegally, I might add -- the letting agent didn't realise the tennant was still living at the property, but she still let me look around -- obviously without their permission, we had to leave quickly incase she came back). In the moment I felt it was the best property for me and I agreed to go back to the letting agent's office and get the ball rolling.

I was asked to pay a "holding fee" of £697 to keep the property off the market while I was being referenced checked. I was told if I failed the reference I would get the money back, and if I was successful, the money would go towards the final costs.

I was sent an e-document to sign on my phone. I found it very difficult to read the small print, but I signed it anyway.

I paid my holding fee at 8pm. So really late in the day.

At 4.45pm the next day I decided to pull out of the agreement.

I was told (and it does explicitly say in the document I signed -- although I couldn't really see it clearly on my phone, the PDF version I was emailed clearly says): There will be no refunds if I pull out of the decision to let the property.

This was reiterated by the letting agency after I emailed asking for clemency:

"I appreciate £700 is a lot of money however we have also spent a lot of time working on this for you, collection of keys, showing you the property, bringing you back to the office, agreeing this offer with the landlord, cancelling other viewings etc."

Remember, this is less than one working day later.

I understand this is totally my fault, and really my reasons are immaterial: There isn't one reason that changes the contract I signed -- I'm the one pulling out; it's my fault. (In truth I panicked and felt I was going to lose this property, when really it wasn't right for me. I found a better one the next day, and fell in love with it.)

However it seems totally excessive to me that the lettings agency take the full amount after barely one working day.

Do I have a leg to stand on in this argument? At the moment I feel like forcing them to continue with their work. If they're refusing to give me ANY money back, then I may as well continue with the proceedings, since they're taking my money anyway. (And there is a chance, after all, that the property I have decided to take instead will fall through.)

Thoughts?
«1

Comments

  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Negotiate.


    See if they'll accept 50%?
  • They have my money. I have absolutely nothing to negotiate with?
  • ViolaLass
    ViolaLass Posts: 5,764 Forumite
    They have my money. I have absolutely nothing to negotiate with?

    You're right. You can ask nicely.
  • jonnygee2
    jonnygee2 Posts: 2,086 Forumite
    1,000 Posts Second Anniversary Name Dropper Combo Breaker
    Can you say you've changed your mind again and would like to rent the property?

    And then, engineer the failing of the reference checks somehow?
  • Engineer a reference fail. Claim you are unemployed. That should do it
  • These type of dealings by letting agents are very unethical, make a complaint and if you're still unhappy then refer it on to the Property Ombudsman.
  • csgohan4
    csgohan4 Posts: 10,600 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Photogenic
    never sign anything without looking at the T+C, if it says non refundable, nothing much you can do. An expensive lesson
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • Holding fee is usually non-refundable so best bet is to ask nicely.

    When you say you were sent document to sign on your phone, I'm assuming you mean it was emailed and you accessed via your phone.
    Either way. you should not have agreed to the content if you could not read it so you are to blame here - hopefully you've read the contract for the next property you fell in love with and now understand any holding fee will be non refundable.

    If the contract really says nothing about the holding fee being non-refundable, you can sue the EA via the small claims court. If you do, Id suggest leaving the bit about an illegal viewing out as I cant see how that helps your case - only distracts and after all you continued to view the place rather than exit the property.
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  • As you signed a contract stating non refundable I would suggest you have dipped out.

    Emailed pdf is no excuse really. If you were at the office then you could have asked for a print out
  • I'll restate that I've already said: I've asked nicely and their response was...

    "I appreciate £700 is a lot of money however we have also spent a lot of time working on this for you, collection of keys, showing you the property, bringing you back to the office, agreeing this offer with the landlord, cancelling other viewings etc."

    I also hold my hand up and acknowledge my part, so no need to restate that.

    It is an expensive lesson indeed, but it does seem unfair to claim money for doing next to nothing :(
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