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iram a
iram a, Advocate
Category: Law
Satisfied Customers: 1546
Experience:  Principal at IA Solicitors
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I’m a landlord. Took a holding deposit from a prospective

Customer Question

Hello, I’m a landlord. Took a holding deposit from a prospective tenant couple of weeks ago by bank transfer. Nothing was signed. Spent over a week doing referencing for tenant and guarantor and it for approved on Friday. Tenant said he will move in today. So we were going to sign the contract today, the holding deposit would have become the security deposit and I would have given him the keys. However, he just sent me a message saying he doesn’t want to go ahead with signing the contract. Can I keep part or the whole holding deposit?
Assistant: Where are you? It matters because laws vary by location.
Customer: London
Assistant: What steps have you taken so far?
Customer: I obviously took the property off the market once they paid deposit, so now I have to list again and by the time I actually have someone to move in, I would have lost few weeks of rent
Assistant: Anything else you want the lawyer to know before I connect you?
Customer: My first step is talking to you That’s the whole picture.
Submitted: 3 months ago.
Category: Law
Expert:  iram a replied 3 months ago.

I am reviewing

Customer: replied 3 months ago.
Thanks
Customer: replied 3 months ago.
Please text rather than call
Customer: replied 3 months ago.
Hello?
Customer: replied 3 months ago.
Is that your advice, to call?
Expert:  iram a replied 3 months ago.

hi,

i can help you for your concerns.

As you have explained that a holding deposit was transferred into your account via bank transaction.

If tenant pull out, the landlord/agent is entitled to holding deposit as forfeit. In this scenario, tenant does’t get his deposit back. It goes to the landlord or agent to cover them against any loss of time and money.

Holding deposit is not a security deposit.

The security deposit is the large sum (usually 4-6 weeks rent) paid at the start of a tenancy. It is returned to tenant at the end of the tenancy, but the landlord can make deductions from it to pay for the repair of any damage done to the property.

When a tenant pay the security deposit, the landlord must register it with a government-approved deposit protection scheme. They also have to send an information to tenant about the scheme they’ve used, how much money makes up the deposit, and how you can contest any deductions they may make.

This information is called the prescribed information. You’ll need to sign a document saying that you’ve received it within a time limit of 30-days from when you pay.

i hope it will help you.

please give 5 star rating for my efforts to help you.

Expert:  iram a replied 2 months ago.

Hello, I see you have read my response to your query. Could you please let me know if it has answered your original question? You can simply reply on here with a quick ‘Yes, thanks’ and I won’t bother you again. Thank you