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Advisory Notice Regarding Initial Holding Deposit and Reservation Terms
We are writing to provide you with important information regarding the reservation of a rental property and the payment of an initial holding deposit. This letter is for advisory purposes only and is intended to ensure that you understand your rights and obligations before proceeding.
By paying an initial holding deposit, you are requesting that the property be reserved for you while pre-tenancy checks are carried out. The amount requested must not exceed one week's rent (calculated as 1/52 of the annual rent total).
Please be aware that this payment is not a tenancy deposit and does not create a tenancy. Its purpose is to secure the property temporarily while referencing and administrative processes take place. It is not protected under a Tenancy Deposit Protection Scheme.
The Initial Holding Deposit may be retained if:
- Any prospective tenant provides false or misleading information which affects the landlord's decision to let the property.
- A tenant fails a Right to Rent check and is not legally entitled to rent property in England.
- The tenant withdraws from the application.
- The tenant fails to take reasonable steps to enter into the tenancy agreement by the agreed deadline.
Full refunds will be issued if:
- The landlord or agent withdraws the property from the market.
- The landlord does not proceed for reasons unrelated to the tenant(s).
- All parties take reasonable steps, but a tenancy agreement is not signed by the deadline.
- The tenant(s) provide accurate information, but the landlord declines to proceed.
The deadline for all parties to sign the tenancy agreement is 15 days from the date the Initial Holding Deposit is received, unless a different date is mutually agreed in writing.
Important Notes:
- Either party may cancel the reservation at any time and in writing.
- If one proposed tenant cancels, this will be treated as cancellation on behalf of all proposed tenants.
- Entering into this agreement does not oblige either party to proceed with a tenancy.