Updating post from Reddit.
I paid a holding deposit for a rental property (in England) and signed an agreement that said the holding deposit was non-refundable due to admin costs and because they would take down the advert.
However, after I paid, I noticed the advert was never actually taken down (I have screenshots as proof).
If I now fail the referencing checks, would I still lose my holding deposit? Or could I argue that they didn’t keep to their side of the agreement by leaving the advert up?
Thanks in advance for any help!
They can only legally keep your holding deposit if you fail a right to rent check (different from references and you should know if you have the right to rent in this country outright going by your residency status), back out after agreeing to go forward, send in no referencing info, or deliberately lie in your references. If you just fail they need to be refunded.
^ That's the correct answer +1
Interesting, I had no idea. Will make sure to get the holding deposit back then, thank you!
Also if they're keeping any they need to explain, in writing within 7 days.
The holding deposit is not really to take down an advert, it is to not accept an other offer, which might be better than yours.
Even if they did not take down the ad, how do you know that they offered viewings to the house? Many agents or multi landlords will keep ads up if they have similar or more than one units to drive up engagement. Is it unethical, yes. Is it illegal, no.
You will not get your HD solely on the fact that the ad was not taken down, sadly.
You must pass your reference checks, including those of your guarantours, if any, and residence status. Any fail of any sort will forfeit your HD.
Interesting, your opinion seems to conflict with everyone else who has answered. I assumed because it was clearly stated as the terms and conditions of why the holding deposit was non-refundable that it would be considered grounds for giving it back if referencing failed.
It doesn't mater what rubbish an agent puts in an agreement, it doesn't overrule what's legal. Presuming false info isn't given, keeping a deposit for failing referencing checks (other than right to rent) is illegal.
No. They would need to return it.
Details here, but basically, unless you have lied to them they have to refund in full.
They're not allowed to charge fees to tenants for things like referencing, so it sounds like what they're trying to do here is keep your deposit instead. Which would be wrong - it's only right to keep someone's deposit if THEY pull out of the deal, otherwise it would be the greatest scam on earth - charge a deposit, cancel the contract, keep the deposit...repeat until a millionaire.
The only way you should lose your deposit is if you decide you are no longer interested, that's the whole point of it. I'd push back hard on this.
Also make sure that if you are successful, your holding deposit goes towards your actual deposit, otherwise they are once again just taking the piss.
I will definitely push back, had no idea at the time I signed that it wasn’t allowed. Thank you!
I don’t do conveyancing any more and expect I never will.
Estate agents should be abolished. Just run an efficient on line advert systems