Holding Deposit Agreement

  1. Payment of Holding Deposit
    1. As the Proposed Tenant, you have made an offer to rent the Property on an Assured Periodic Tenancy
    2. You are required to pay a refundable Holding Deposit equivalent to one week’s rent. The holding deposit demonstrates your intention to rent the property subject to the satisfactory completion of reference checks and right to rent checks.  The Property will be withdrawn from the market whilst these checks are completed.
    3. This agreement is not intended to create a tenancy in respect of the Property. It does not oblige any party to enter into a Tenancy Agreement. The Holding Deposit is not a tenancy deposit which is subject to protection under the Tenancy Deposit Protection Scheme in accordance with the provisions of the Housing Act 2004.
  2. Deadline for Agreement
    1. The last date for both parties to sign the Tenancy Agreement under the Tenant Fees Act, is the fifteenth day from receipt of the Holding Deposit. 
    2. We will notify you in writing if the 15 day deadline is extended. If you need an extension to the 15 day deadline, you must ask for this in writing.
  3. When the Holding Deposit will be refunded
    1. The holding deposit will be refunded to you if:
      1. the Proposed Landlord withdraws from this agreement 
      2. the deadline for agreement has passed and you have taken all reasonable steps to agree a tenancy by then
    2. The Holding Deposit will be refunded in full to you within 7 days of the deadline for agreement, or within 7 days of the Proposed Landlord’s decision if it is before the deadline for agreement.
  4. When the Holding Deposit will NOT be refunded
    1. The Holding Deposit will not be refunded if:
      1. you provide false or misleading information affecting the decision to let the property
      2. you fail the right to rent check
      3. you withdraw from the proposed agreement
      4. the deadline for agreement has passed and you have not taken all reasonable steps to agree a tenancy by then
    2. If we intend to keep the holding deposit, we will advise you in writing of the reason for this within 7 days of deciding not to enter an agreement.
    3. You also agree that if the Tenancy Agreement is signed by both parties, the Holding Deposit may be used towards the payment of the Tenancy Deposit, or, towards the first payment of rent due under the Tenancy Agreement.

By paying the requested holding deposit you are agreeing to this agreement