Are booking deposits refundable?

G

galleryman

Registered User
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168
Quick question,

I always believed that a deposit to BUY a house was refundable before you signed contracts.

Does this alos apply when renting through a letting agent?

If you hand over a deposit to secure a rented property and for whatever reason you need to pull out BEFORE you sign any lease, are you entitled to a refund of your booking deposit?

thanks
 
galleryman said:
Quick question,

If you hand over a deposit to secure a rented property and for whatever reason you need to pull out BEFORE you sign any lease, are you entitled to a refund of your booking deposit?

thanks
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Your deposit resulted in the Landlord/Agent taking the property off the market as you intended to rent it. The Landlord/Agent then lost out on any opportunities to rent between the deposit payment and you backing out. Your deposit is then taken as some compensation to the Landlord/Agent.
 
how is that any different to paying a deposit when making an offer to buy a house. The agent takes the house off the market, stops showing it and stops accepting new offers. If the buyer backs out any any stage before signing contracts they get their deposit back.

Why should it be different for renting????
 
galleryman said:
how is that any different to paying a deposit when making an offer to buy a house. The agent takes the house off the market, stops showing it and stops accepting new offers. If the buyer backs out any any stage before signing contracts they get their deposit back.

Why should it be different for renting????
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In the case of someone selling they are still benefiting from the house. When someone is renting they have taken thier property off the rental market and so will loose out the income they otherwise would have by doing so. makes perfect sense to me.
 
galleryman said:
how is that any different to paying a deposit when making an offer to buy a house. The agent takes the house off the market, stops showing it and stops accepting new offers. If the buyer backs out any any stage before signing contracts they get their deposit back.

Why should it be different for renting????
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When buying a house you will find that the deposit is subject to loan approval. Sale agreed is usually put up rather than SOLD. The deposit will be fully refundable if loan approval is not met. On the other hand, if the buyer decides not to buy for their own reasons the deposit should not be refunded.
 
MaryBM said:
When buying a house you will find that the deposit is subject to loan approval. Sale agreed is usually put up rather than SOLD. The deposit will be fully refundable if loan approval is not met. On the other hand, if the buyer decides not to buy for their own reasons the deposit should not be refunded.
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I dont think you are right there. The deposit is refundable at any stage prior to the signing of contracts as far as I know.
 
It is more normal for the deposit to be subject to contract. Your reasons for not signing the contract could be loan approval, engineer's report, change of mind, whatever. Deposit will be fully refundable unless contract is signed.
In the OP's case, the period where the property is not rented is costing the landlord whereas in the case of a sale it does not cost the vendor, just delays them.
Sybil
 
My letting agent handed back a deposit to the tenant after they pulled out before signing the lease. Apparently the deposit is only valid once the lease is signed. That is what i was told anyway. I was very annoyed as the property had been off the market for 2 weeks waiting for them to sign the lease.
 
mro, I would be having words with that agent if he took the property off the market for 2 weeks without a non-refundable deposit.
Sybil
 
mro said:
My letting agent handed back a deposit to the tenant after they pulled out before signing the lease. Apparently the deposit is only valid once the lease is signed. That is what i was told anyway. I was very annoyed as the property had been off the market for 2 weeks waiting for them to sign the lease.
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Has anyone any up to date information regarding a tenant putting down a deposit with the view to rent the accommodation and then the tenant changing his/her mind and not renting the accommodation before a lease is signed. There was an intention on the behalf of the tenant (who paid a deposit) to move into the property with a friend (who didn't put down a deposit), but the friend failed to put down a deposit. Now the tenant (who paid a deposit) is looking for the deposit back.

Should a landlord reinburse the tenant the full deposit?

Should a landlord reinburse the tenant the full deposit less the rent lost?

Any comments welcome
 
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