Holding Deposit

  • A deposit  or bond retained to secure a tenancy subject to credit checking and signing a tenancy agreemnt.
  • Failure of a prospective tenant to proceed to contract is likely to result in the loss of the holding deposit.
  • The property cannot be offered to another whilst the holding deposit is retained and the proceedure of checks and drafting contracts is underway.
  • In the event the tenant is sucessfully credit checked but still rejected by a landlord the tenant receives a full refund of the deposit.
  • In the event a credit check fails for something which the tenant ought reasonably to have known the tenant is likely to lose the holding deposit.
  • The holding deposit is normally deducted from the first rent or admin fee and therefore is not retained.

What are your thoughts?

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