Multiple Holding Deposit

[direct2000]

Could someone give me some advice in this case.

The 3 bedroom house was advertised for 1250 pcm. The landlord through an agency agreed to let the house for 1100 pcm minimum plus 6 months rent in advance because I am not working now. I looked the house and paid 250 Holding Deposit for 1100 pcm for the family of 4 adults and 1 child. The agent promised me that I will be first and the house will not be shown to anybody else. 15min later after my looking another person looked at this house and 4 hours later paid 250 Holding Deposit for 1150 pcm

for the family of 2 adults and 6 children.

I went to the agency and told them that I know about second deposit. They told me that it is usual practice to collect many deposits in the interval 1100 - 1250 in this case , "another person paid Holding Deposit 15 min later" and only the landlord will choose seriouse people from us.

I told the an agency that if I will not be provided with a choice to be first according "Sale of Goods Act" - first come - first served (if nessesary to pay 1150 pcm) I will complain. When I asked to give me this agent's or the manager's surname or an interview with the manager or to make an appoitment to the manager he refused me.

 

Is it illigal or not? What should I do next.

 

PS: I very need this house and have got good references from my landlors also my references have been succeful in two separately independant agecies in last two months. However another family (1150) does not have good references from last landlors so they lost deposit (1000) due to damage to the property.

 

PS

Welcome to Beaumont Residential

[MrShed]

Not illegal as far as I know, unless you got this in writing. However, if they do NOT choose you, you are fully entitled to the deposit back.

[direct2000]

They did not put in in writing but in a converstation they said that the house was reserved by me, they would take it off the market and would not show to anyone else. Otherwise, why would i pay a holding deposit in a first place?? Have they still acted legally by taking deposit from another person??

[MrShed]

Nothing illegal about it. If you can prove the conversation took place(you will have a job), then they are in breach of contract. But can't see you proving it unfortunately. What does it say on the receipt?

[direct2000]

A i see it, when I give a holding deposit to the agent I guarantee that I will rent the property. And when the agent accepts the deposit he guarantees that he willl let me the property. Haven't they misprepresented their policy to me assuring me verbally that the property will not be seen by anone esle? Because even this misperresentation lead me to enter an agreement with them. I have nothing in writing from them saying that the agency takes multiple diposits, if I was aware of this, there is no way I would pay a holding diposit. For what reason, just to improve their cash flow?

[MrShed]

I do not disagree for one second that they are in breach of contract. Your problem is proving it. What does it say on the receipt?

[direct2000]

Copy:

FEE OF INTENT

 

£250 paid as a fee of intent for the above mentioned property at a rental of

£1100 pcm

 

I agree that this is a fee of intent and is non-refundable under any circumstances. I agree that all application forms will be returned, completed in full by the 21/02/07 (=mistakes, dates should be as of 21/03/07). Failing this, the property will be re-marketed and the fee of intent will not be refunded.

 

For and on behalf of all tenants: [signtature of the agent]

(=mistake, should be signature of the tenant)

 

Date: 22/02/07

[MrShed]

That would help then, as it clearly implies, in writing, that the property would not be re-marketed unless certain conditions were met.

 

Lets make one thing clear however. There is NO WAY to force the agent to let the property to you. Contract laws do not, contrary to popular belief, allow the enforcement of a contract. However, they do allow for compensation for the actual financial loss due to termination of a contract.

[direct2000]

Thank you. So if they do NOT rent the property to me what kind of financial compensation can claim? And how?

[direct2000]

I would prefer to have the house however.

[MrShed]

The financial compensation could really only be decided by a court.

[direct2000]

Small claim court?

[MrShed]

Yes

[direct2000]

What about that fact that another family has have criminal records?

[MrShed]

What about it?

[direct2000]

In my opinion it is not right to compare only by the price of the house. The agency is preparing the referencies and a lot of it dependens on them.

[blacksheep1979]

holding deposits are a bit of a one way street - if you pull out, you can lose the money, if the landlord pulls out there isn't much you can do I'm afraid.

[direct2000]

"First See- Will Let"

 

A holding deposit is paid to the landlord/agent to hold the property for you

whilst you decide whether to take it or not. Exactly what has been agreed depends on the wording, but usually once you have paid a holding deposit the landlord/agency should not then show the property to other prospective tenants.

 

Do you agree with this?

[MrShed]

Absolutely, this is pretty much what has been said above.

[direct2000]

Why did the agency take the deposit 4 hours later? (I have witnesses) Did the agency break the law? And if so, what law did they break?

[MrShed]

They have broken your contract. They have not broken any law.

[direct2000]

Unfortunately, it was a verbal contract. The agent promised to return full holding deposit to the person who would not be chosen but I am sure he will not to confirm this in writing. I paid 250 Holding Deposit. The agent promised me that I will be first and the house will not be shown to anybody else but broke his promise. When I asked to give me this agent's or the manager's surname or to speak to the manager or to make an appoitment with the manager he refused me. As a result I spent time and nerves while I could search for other houses. On the other hand, if I pull out of the deal, for almost any reason, then my deposit is not refundable because the landlord/agency lost time while they could offer the house to someone else.

 

Can I have an interview with the manager? How can I do this politely?

[direct2000]

Finally, The agency refused to return holding deposit me and another family bacause the landlord does not accepted housing benefit.

[LittleMissSunshine]

This sounds really ridiculous from the beginning

 

Nice one from the agency... it is happy to take money from someone who already has nearly nothing.... but refuses to let them the property ... I wonder if they have to let you know in advance that they do not take people with housing benefit.... sounds a bit like discrimination.. but i guess its the landlords right to do this.. as i found out that landlords has an enormous amount of rights sometimes beyond common sense (as with the multi holding deposit you described) .... however I would try to fight and get the deposit back...seek advice from your local council (as you are on benefits, they can help out) and maybe the CAB

 

 

Good luck

LMS

[direct2000]

22/02/07 at 11:30am I looked 3 bed house on 100 Arran Road, SE6 2NN. The agent Tom Lee promised that if I first pay Holding Deposit the house will be taken off the market.

22/02/07 at 11:58am I paid £250.00 Holding Deposit as Fee of Intent (copy enclosed). The Agent,

(probably- Mark Moran -07852162758) who signed this receipt instead of me, promised that if I first pay Holding Deposit the house will be reserved by me, they would take it off the market and would not show it to anyone else according to:

“A holding deposit is paid to the landlord/agent to hold the property for you whilst you decide whether to take it or not. Exactly what has been agreed depends on the wording, but usually once you have paid a holding deposit the landlord/agency should not then show the property to other prospective tenants."

24/02/07 I provided the agency all forms confirming our income, housing benefit and references.

26/02/07 When I asked Mr Kerim why the house was showed to another people after I paid holding deposit and two agents promised not to show it, Mr Kerim said that it happened 15 minutes later and it is policy of the agency to collect as many as possible deposits and next the landlord will choose one of them. Also he refused me to give his or his manager's surname, to let to speak to the manager or to make an appointment to the manager. In fact, this house was showed to another family twice 22/02/07 at 11:45 and 16:00, second deposit was paid at 16:15. I have got the witnesses.

01/03/07 Mr Tom Lee told that Steve is his brother who is the manager of Beaumont Residential Agency. Mr Tom Lee and his sister in the agency promised me if the landlord refused me or choose another tenant then Beaumont Residential Agency must return me an entire holding deposit

according to: http://www.rightmove.co.uk/template/publicsite,help,guides,renting,SecurePlace.vm#holding

“If the landlord pulls out of the deal, you should be able to get your deposit returned.

Complications arise when one agency takes a deposit from you, while another agency takes a deposit from another interested tenant. In this case, the landlord has to choose, and that could be based on which tenant put down the higher deposit.”

http://www.laborlawtalk.com/showthread.php?t=87028

“If you give the landlord a holding deposit when you submit the rental application, but the landlord does not accept you as a tenant, the landlord must return your entire holding deposit to you”

05/03/07 Mr Kerim phoned us to tell that the landlord did not accepted Housing Benefit and this house was again on the market. He also asked us to come to the office in order to collect the deposit.

07/03/07 I told Mr Kerim to ask if the landlord accept 6 months rent and 6 month tenancy agreement he refused to ask by phone or email. Mr Kerim promised to speak to the manager and return me holding deposit on Friday 09/03/07.

08/03/07 when I phoned Mr Tom Lee about housing deposit he refused to speak and directed to Mr Kerim.

09/03/07 I phoned Mr Kerim who promised to send email to the landlord and ask if he would agree to sign the tenancy agreement in 6 months with 6 month rent in advance.

13/03/07 I visited the agency, Mr Kerim told us he cannot return my housing deposit because the policy of the agency has nothing to do with people whom receive housing benefits and that we were guilty that we did not say that we receive housing benefit before bringing the deposit and our references were not successful. At the same time Mr Kerim suggested to transfer my holding deposit on another 5 bed house on Wellmeadow Road (‘Please be aware professionals only’). However, Mr Kerim told me that it would be a very different matter if at least Mr Tom Lee knew that we receive housing benefits. Next I asked Mr Kerim to hear carefully when my daughter phoned with a loudspeakers to Mr Tom Lee on his mobile. When my daughter asked the question, Mr Kerim also added that “ we are in the office and having this debate”. Mr Tom Lee said he knew nothing, When I asked Mr Kerim to explain me the procedure of complain he told me to write a letter to the manager. When I asked for the next step he said “he does not know”.

In fact, usually the agencies except Beaumont Residential place an advert Restrictionson Internet (Housing Benefit, Smokers, Dogs, Cats, etc) and/ or ask this in conversation for a viewing appointment and collecting holding deposit to search the prospective tenants. (This agency never states that they do not accept DSS, a copy enclosed)

However, the house on Arran Road will only be available since 21/03/07, therefore the landlord did not experience any losses yet. It was not my fault that the landlord rejected my deal, but was previously agreed to it.

 

On the 14/03/07 I sent the letter “RE: Refund of holding deposit £250, 100 Arran Road, SE6 2NN”

to the manager Beaumont Residential by Recorder Signed For (Ref: DH118070319GB) -“To be opened by addressee ONLY”. (www.royalmail.com/ “Your item with reference DH118070319GB was delivered from our CATFORD Delivery Office on 15/03/07”).

On the 15/03/07 Mr Tom Lee phoned us, confirmed that he received my letter but refused to return

my holding deposit and refused to confirm this decision in writing. He informed that Mr Mark Moran (Mob- 07852 162758) was the person who took my holding deposit and signed instead of me Fee of Intent on 22/02/07 and Mr Kerim Turkmen was responsible for my case.