Holding deposit taken by my managing agent

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  • ChrisDennison
    replied
    Originally posted by Sonya Jey View Post
    I have no time to keep looking up what they claim to be legal.
    Hilarious. You have no time to read the agreement that you signed with the letting agents, but you have time to waste other people's time by asking them lots of follow on questions, rather than simply reading the contract on whether it stipulates this or not. Well, jpkeates has said it all.

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  • doobrey
    replied
    Originally posted by Sonya Jey View Post
    I associate the term ombudsman with the law.....perhaps i shouldn't have.
    It's not the law, but TPOS Code of Practice for Residential Letting Agents may be considered a proxy for "Good Practice". On that basis the tenant can reasonably expect the property to be taken off the market having paid a holding deposit - and your agent may have told them that it would be.

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  • MdeB
    replied
    Originally posted by Sonya Jey View Post
    jpkeates, who is the client in this case?
    The landlord (the client of the Agent)

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  • cymro123
    replied
    A few points of note:
    The agent, acting on your behalf, has taken the Holding Deposit on your behalf - it is the prospective tenants money held for you it is NOT the agents money to keep
    In order to take a Holding Deposit there has to be a Reservation Agreement/Holding Deposit Agreement - a deposit can only be taken for anything e.g. Buying a car as a security for performance of obligations and those obligations will be defined in the RA/HDA - what does the RA/HDA say? Ask agent for a copy

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  • Sonya Jey
    replied
    I saw the word ombudsman and perhaps reacted and asked my 2 other marketing agencies to remove it form online marketing. I associate the term ombudsman with the law.....perhaps i shouldn't have.

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  • barongan
    replied
    Originally posted by jpkeates View Post
    I agree that you should check the agreement you have with the agency.

    It's not a legal issue (I bet they can't find a law that says the property has to be removed from the market) but it may be contractual - it may be in their agreement with you or they may have agreed that with the prospective tenant when taking the deposit.

    However, I'd remind them that they work for you and it is not "legal" under agency law for them to make profit from their principle's asset.

    If it were me, I'd refuse to let them continue to be my agent - they've forgotten they're your agent.
    Very nice..

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  • Sonya Jey
    replied
    jpkeates, who is the client in this case?

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  • jpkeates
    replied
    Shelter's view is essentially editorial, the law doesn't say that the property has to be removed from the market.
    It says that an agent or landlord can't take more than one holding deposit.

    The Property Ombudsman isn't the law either, but it is a code of practice that the agent may well have signed up to.
    But the agent will struggle to use that code as any basis for their behaviour, because it also says, "Where you take a holding deposit from a tenant the payment must be treated as clients’ money" and the agent clearly doesn't accept that part of the code.

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  • doobrey
    replied
    Yes, seems that it should indeed be taken off the market. Although neither Shelter nor the following reference are legislation, The Property Ombudsman says the same thing. See section 10 here:

    http://www.eps.properties/wp-content..._June_2019.pdf

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  • Self sufficient
    replied
    Holding deposits

    How much you can be charged and when a holding deposit should be returned. What is a holding deposit?

    A holding deposit is a payment to a landlord or agent to reserve a property.

    In most cases, you should get the money back if the landlord decides not to rent to you.

    Only pay a holding deposit if you're serious about taking on the tenancy. The landlord or agent might keep the money if you decide not to go ahead.

    Most other charges such as reference fees are banned from 1 June 2019. How much you can be charged

    From 1 June 2019, a holding deposit can’t be more than 1 week’s rent.

    How to calculate:

    Monthly rent x 12 ÷ 52 = maximum holding deposit

    Ask the landlord or agent to refund any money you've paid above this limit.

    You can report them to trading standards at the council if they refuse and claim back any excess by applying to a tribunal.
    What should happen when you pay

    The landlord or agent should stop advertising the property.

    They are not allowed to take a holding deposit from more than one person for the same property at the same time.
    https://england.shelter.org.uk/housi...lding_deposits

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  • doobrey
    replied
    First off I would ask the agent to quote the legislation or contract which requires you to take the property off the market.

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  • Sonya Jey
    replied
    Thank you. I have no choice but to continue with this new let or risk having an empty flat at this very unstable time. I have no terms regarding the holding fee. I have no time to keep looking up what they claim to be legal. I agree that the tenants would like to see the property removed from the market but then, do you think I could tell the agent that I too should have rights to the holding deposit in the event of the tenants pulling out or falsifying into failing references etc ?

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  • jpkeates
    replied
    I agree that you should check the agreement you have with the agency.

    It's not a legal issue (I bet they can't find a law that says the property has to be removed from the market) but it may be contractual - it may be in their agreement with you or they may have agreed that with the prospective tenant when taking the deposit.

    However, I'd remind them that they work for you and it is not "legal" under agency law for them to make profit from their principle's asset.

    If it were me, I'd refuse to let them continue to be my agent - they've forgotten they're your agent.

    Leave a comment:


  • ChrisDennison
    replied
    How about you refer to the agency agreement that you have with them? That should give you the answer...?

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  • Sonya Jey
    started a topic Holding deposit taken by my managing agent

    Holding deposit taken by my managing agent

    Hi, I am a landlord. My managing agent who I pay to manage the property have taken a holding deposit for potential tenants.The agent is forcing me to remove my property from the market however I have no rights to the holding deposit should the tenants pull out. The agent has decided that the holding deposit is there as security for them should they spend on admin/referencing and the tenant pull out. I would get nothing back so why should I stop advertising. If the current tenant pulls out, I'll be left with an empty flat with no viewings for say 7-15 days. Should the managing agent be the only one with rights to the holding deposit? Urgent answer as they keep telling me I have to legally remove the property from the market. They seem to like the word legal and have used it several times only for me to find out certain things are optional and not a legal duty. Thanks

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