Initial Holding Deposit
Terms & conditions for reserving a rental property.
Definitions
Property — the address the applicant has written on their application form as the 'Address applied for'. Rent — the rent that has been advertised for the relevant property being applied for.
1. The Agent acknowledges receipt of the Initial Holding Deposit so as to reserve the Property.
2. The Agent shall not let the Property to any other person other than the Proposed Tenant(s) plus any further persons nominated by them as additional tenants. This condition will last until this reservation is cancelled by either party, or until 15 days from receipt of the Initial Holding Deposit, or until the 'Preferred moving-in date' as entered on the Tenancy Application Form, whichever is the earlier.
3. The Agent will not take additional Initial Holding Deposits from any parties aside from the Proposed Tenant(s) plus any further persons nominated by them as additional tenants up to the number stated. This restriction lasts until the Initial Holding Deposit has been partially or fully refunded, or allocated to the Proposed Landlord where these Special Conditions or Schedule 2 of the Tenant Fees Act 2019 allows.
4. If a Tenancy Agreement is entered into in respect of the Property at the proposed rent between the parties, the Initial Holding Deposit shall be credited in its entirety against the rent payable under the Tenancy Agreement by the Proposed Landlord.
5. If the Tenancy Agreement is not signed within 15 days of paying the Initial Holding Deposit, or if the reservation is cancelled by either party, the Initial Holding Deposit shall only be repaid as provided below and not otherwise. Where the Proposed Landlord/Agent is entitled to retain the deposit, the reason and amount retained will be communicated to you in writing within 7 days, in accordance with these Special Conditions or Schedule 2 of the Tenant Fees Act 2019.
6. 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. Either party may cancel the reservation. The pre-contract deposit is therefore not a tenancy deposit subject to protection under the Tenancy Deposit Protection Scheme.
7. The Initial Holding Deposit is refundable in full in the following circumstances
- If the Proposed Landlord does not accept the reservation or does not agree to abide by these Special Conditions
- The Proposed Landlord withdraws the Property and cancels the reservation
- All parties take all reasonable steps to enter into a Tenancy Agreement but do not sign by the deadline
- The Proposed Tenant provided accurate information and the Proposed Landlord declines to enter into a Tenancy Agreement prior to the deadline
8. The Proposed Landlord does not have to refund the Initial Holding Deposit if
The Proposed Tenant provides false or misleading information impacting the landlord's decision; the Proposed Tenant cancels their reservation prior to the deadline (where landlord/agent acted reasonably); the Proposed Tenant misrepresented their right to rent status; or the Proposed Tenant fails to take all reasonable steps to enter into a Tenancy Agreement by the deadline. Examples of taking reasonable steps include providing information for references, contacting referees in time, performing credit checks, attending a right-to-rent appointment, and providing security deposit and rent by the deadline.
9. Where more than one person is named as Proposed Tenant, either or any of them may cancel this reservation, which is then treated as a cancellation on behalf of all of them.
10. Any cancellation of the reservation by either party must be in writing to be effective.