House Price Crash forum: Holding Deposit - House Price Crash forum

Jump to content

powered by
Page 1 of 1
  • You cannot start a new topic
  • You cannot reply to this topic

Holding Deposit EA being unethical... Rate Topic: -----

#1 User is offline   thejaksie 

  • HPC Poster
  • PipPip
  • Group: New Members
  • Posts: 75
  • Joined: 04-July 11

Posted 03 April 2012 - 01:52 PM

hi

I have sold to rent (or in process to) and have found a place we would like to rent in London and would like to start negotiating contract.

However, before the EA will show us a draft contract he wants a "holding deposit" of 2 weeks rent. He won't take the flat of the market, won't show us draft contracts, won't do anything before we pay him this amount. The amount would be transferred without contract and it is extremely vague under what conditions we would get this back, if ever.

We are pushing to at least see the contract before we pay anything but the EA is basically telling us we're being difficult and that he will push the flat with others. I am now at the point of walking away as this sounds like extremely dodgy business practice.

Wondering (1) is this normal, and (2) is this even legal???

#2 User is offline   zebbedee 

  • HPC Veteran
  • PipPipPipPip
  • Group: New Members
  • Posts: 1,604
  • Joined: 17-May 07

Posted 03 April 2012 - 02:03 PM

View Postthejaksie, on 03 April 2012 - 01:52 PM, said:

hi

I have sold to rent (or in process to) and have found a place we would like to rent in London and would like to start negotiating contract.

However, before the EA will show us a draft contract he wants a "holding deposit" of 2 weeks rent. He won't take the flat of the market, won't show us draft contracts, won't do anything before we pay him this amount. The amount would be transferred without contract and it is extremely vague under what conditions we would get this back, if ever.

We are pushing to at least see the contract before we pay anything but the EA is basically telling us we're being difficult and that he will push the flat with others. I am now at the point of walking away as this sounds like extremely dodgy business practice.

Wondering (1) is this normal, and (2) is this even legal???

I've heard of this being done, legal enough IMHO, however if the rental falls through through no fault of yours they have to return the deposit, I'd go so far as to say that as you were not permitted to see the contract prior to giving up this deposit that issue you may have with the contract would be no fault of yours. Indeed even failing the credit checks would be no fault... as it is subjective based on the LL opinion as to whether or not they are to his satisfaction.

The LA are know for taking the deposit off a number of peeps and not bothering to return them but will more than likely capitulate in the face of a court summons.

Edit. Although personally I'd tell them to f off with the 2 weeks rent size deposit.
As for the getting it back if they decide not to rent to you, no deposit can have been made for something that was not available to you.

Edit again. Maybe even if you pull out the OFT would rule it an unfair penalty as it would be disproportionate to the agents costs.

This post has been edited by zebbedee: 03 April 2012 - 02:06 PM

As I wandered in the darkness a voice came unto me, it said "smile, be happy, things could get worse". So I smiled and was happy and behold, things did get worse.

"Credit is indeed vital to an economy, but it does not constitute an economy within itself. ... When businesses borrow to fund capital investments, the extra cash flows that result are used to repay the loans. When individuals borrow to spend, loans can only be repaid out of reduced future consumption."-Peter Schiff, Jan 19 2009; <a href="http://www.321gold.com/editorials/schiff/schiff011909.html" My link

"The bold effort the present bank had made to control the government... are but premonitions of the fate that await the American people should they be deluded into a perpetuation of this institution or the establishment of another like it."-Andrew Jackson on the Second Bank of the United States

"The problem with socialism is that eventually you run out of other people's money."-Margaret Thatcher

"If tyranny and oppression come to this land, it will be in the guise of fighting a foreign enemy. Of all the enemies to public liberty, war is perhaps the most to be dreaded because it comprises and develops the germ of every other. War is the parent of armies; from these proceed debts and taxes; and armies, and debts, and taxes are the known instruments for bringing the many under the domination of the few. The loss of liberty at home is to be charged to the provisions against danger, real or imagined, from abroad." - James Madison

"Faced with the choice between changing one's mind and proving that there is no need to do so, almost everyone gets busy on the proof."
John Kenneth Galbraith

#3 User is offline   rw42 

  • HPC Veteran
  • PipPipPipPip
  • Group: Members
  • Posts: 1,239
  • Joined: 05-May 08

Posted 03 April 2012 - 04:17 PM

Run a mile.

#4 User is offline   gadget 

  • HPC Veteran
  • PipPipPipPip
  • Group: Members
  • Posts: 1,457
  • Joined: 04-July 11

Posted 03 April 2012 - 06:44 PM

Pretty standard in my experience. And legal. However if they attempt to keep hold of it in most circumstances they'll be breaking the law. Probably won't stop them trying to mind.....

#5 User is offline   porca misèria 

  • Porcine Aviation Enterprises
  • PipPipPipPipPipPipPip
  • Group: Members
  • Posts: 13,833
  • Joined: 01-September 08

Posted 03 April 2012 - 10:32 PM

Isn't taking it up thejaksie all part of the London experience?

#6 User is offline   Scary 

  • HPC Poster
  • PipPip
  • Group: New Members
  • Posts: 62
  • Joined: 16-September 10

Posted 04 April 2012 - 07:45 AM

View Postgadget, on 03 April 2012 - 06:44 PM, said:

However if they attempt to keep hold of it in most circumstances they'll be breaking the law. Probably won't stop them trying to mind.....


Yeah, and good luck getting it back...

#7 User is offline   Bruce Banner 

  • Targ
  • PipPipPipPipPipPipPip
  • Group: Members
  • Posts: 12,649
  • Joined: 15-December 07

Posted 04 April 2012 - 08:53 AM

How on Earth can you be expected to commit to something before you've seen the terms of the contract? Sounds to me like desperation from a company about to go tits up.
.



----------------------------------------------------------------------------------------------------------
Lest there be any doubt.

View Postsatch, on 11 November 2013 - 10:25 PM, said:

No I believe prices will fall and am astounded that a so called Conservative led government could act in such a stupid way. As you can see from today, there are 2,000 HtB applicants and it has been on MSM none stop all day and they make up about 3.5% of a typical months mortgages.

BTL is a good potential way to bankruptcy and yes sometimes I make points to hopefully make people think.

#8 User is offline   thejaksie 

  • HPC Poster
  • PipPip
  • Group: New Members
  • Posts: 75
  • Joined: 04-July 11

Posted 21 April 2012 - 03:33 PM

as an update FYI the EA had some tricks up his sleeve in terms of costs and requirements . We have since been told that the "landlord" did not want to continue with us as we were "difficult" (despite that our issues only had anything to do with the EA's fees and stupid requirements and nothing with the tenancy agreement or flat).

Luckily they did refund the deposit.

Found a nicer, bigger flat, in better location since then > at the same price.

With this behaviour this EA will be out of business in a matter of time only I suspect

Page 1 of 1
  • You cannot start a new topic
  • You cannot reply to this topic

1 User(s) are reading this topic
0 members, 1 guests, 0 anonymous users