holding deposit and rent increase

[reggie42]

Hi all
a friend of mine paid £100 holding deposit on a flat in April with the intention of moving in September (she's a student)
she's just been told that the landlord is selling the house but the new buyer will still rent her the flat but wants and extra £30 per month rent. As the signed holding deposit form states £270 is this binding or will she have to accept the new rent (or pull out and get deposit back)
thanks in advance for any replies

[Joa]

As far as i am aware, the new landlord takes over all obligations of the old one. The signed holding deposit slip can be seen as contract.
If your friend challenges the new landlord, it could sour the relationship. A good relationship with the landlord is very important and I am not sure if it's worth £30 per month to ruin it. She can have a moan about it, just to indicate to the l/lord how much it will inconvienience her, so he appreciates her "sacrifice" but I wouldn't go further. Also, student accommodation may be shortly in a short supply as everyone rushes now to find one for September.

[Aequitas]

To answer this question it is necessary to know:

1. Exactly what was agreed to decide whether or not there is a contract.

2. If the sale has taken place.

[Joa]

The sale?

[Aequitas]

The poster said:

Originally Posted by reggie42

she's just been told that the landlord is selling the house

[Joa]

oops, me bad

whether or not there is a contract

do you not think that the holding deposit receipt, which states the amount of rent and probably the address of the property would be sufficient to for a contract?

[Aequitas]

Originally Posted by Joa

do you not think that the holding deposit receipt, which states the amount of rent and probably the address of the property would be sufficient to for a contract?

The first thing to note is that an agreement to grant a tenancy for a term of three years or less does not need to be in writing, so whether there is a binding agreement may not depend on what the deposit receipt says.

The second thing to note is that the deposit receipt may have something on it that implies or expressly denies that there is a contract.

Next, whether recorded in writing or not, were sufficient terms agreed to create a contract?

If there is a contract, the question arises whether it is binding on the buyer. It is only binding if she has notice of it. This does not mean actual notice, but notice according to the law, which (in the case of unregistered land) will be the registration of a land charge or (in the case of registered land) the registration of a unilateral notice.