Holding Deposit – Help

Hi Sean,

Do you have any record of the transaction at all eg text, letter, email etc.

If it is a card payment you can go back to the bank and request a charge back.

However what you have said does not quite make sense as there would be absolutely no point in the holding deposit - "She was told at the time that if we didn’t go through with the tenancy or if it fell through that this money would be refunded."

Does your partner remember it correctly?

Holding deposits are usually non-refundable, sorry that's not what you want to hear.

As to quarterly rent, that is an odd one, I have never heard of that. Neil will know better but I think that would affect the notice required? I'd be interested to know their reasoning.

P.S. If the terms are different than when you paid the deposit i.e. quarterly and not monthly, you might be able to say you paid it on the basis of monthly and they have unilaterally altered the terms such that you would not have paid it if you had known. Then you might have a case for getting it back.

Money Claim Online should focus minds - see >>> https://www.moneyclaim.gov.uk/web/mcol/welcome

Comment posted by Mark Alexander using Neil's login.
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The agent said "(name) verbally agreed that the payments can be made quarterly”.

Did (name) actually agree this?

Letting agents now have to publicise their fees in their office and on their website. Do they? It would appear from the legislation that holding deposits would be covered in that requirement from my reading. This legislation is the Consumer RIghts Act 2015 section 83. If they don't that may be something worth pursuing. The legislation is all about making things like this clear and transparent.

They also have to advertise which redress/ombudsman scheme they belong to. They must belong to one by law. If you don't get anywhere with the agents and still feel aggreived it may be worth taking your complaint to the redress scheme.

Claim for Breach of Contract, ... the terms were monthly, you agreed to monthly, give some good reason why you prefer monthly rent payments but that is immaterial, stick with a breach of the contract term occurred, and go to Court with them, if you issue the summons go for the Limited Company, and the Directors to get up there noses, you claim they said you'd get your money refunded so are party to the Ccontract. Do visit (Google) Companies House Home Page and Webceck, download for £3.00 the Directors names and home addresses and use this as proof that you mean business. These rip off agents are a nationwide pest on mankind.

Hi all, really appreciate the great feedback here.
This has already taken another twist today....
When the quarterly payment was raised, I said to the agent that we would pay quarterly for 1 period and then would pay on a monthly basis. He said he would come back to me and never did until they contacted us yesterday to say they wanted 6 months of rent plus 6 weeks rent as a deposit.

To clear things up, they told me on the phone that the deposit / holding deposit would be refunded if it didnt go ahead.

Bizzarely enough, at one point yesterday he told my partner that he recorded the phone call when he called me last Friday. We asked for this but we have heard nothing of it since.

So Today we receive this:

"We have spoken with the managing agent and due to the fact that ********* is overdrawn on her bank statements the managing agents really do require 2 three monthly payments if they are going to proceed with the rental. Unfortunately this is their process and we have tried to discuss the option of monthly payments and one 3 month payment in advance but this is something they are not willing to do".

So we dont know where we stand right now... 🙁

Quote; We signed no terms and conditions etc.

Estate and Letting Agents are subject to quite severe controls, I have never heard of one taking money without given you a receipt, if they did so its customary to includes some notes what it was for. The receipt alone is proof of a contract, you should also have been given a copy of the application form, which normally contains some terms and conditions.

My gut feeling is they are not impressed with your references or financial position, so are looking for extra money than what was agreed to earlier, this increase is a clear breach of contract. Do check for the words Subject To Contract, no contract you should obtain a refund. My view is the £500 was a goodwill earnest deposit money and you're entitled to it back.

Once you've paid the holding deposit on agreed terms, the landlord/agent is not entitled to come back purporting to change the terms for the lease.

This might help explain your position — article on Holding Deposit Agreements: Pre-Tenancy Obligations and Rights (2015) 19 Landlord & Tenant Review 143 (free access) – http://ssrn.com/abstract=2637686