HELP! Tenant wants money back.

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    HELP! Tenant wants money back.

    Prospective tenant has paid deposit (equivalent of 1 month's rent) plus first month's rent by cheque (cleared). This was nearly 3 weeks ago. A day before he was about to sign the tenancy agreement, I (prospective landlord) was informed he was pulling out. He demanded his money back. I returned the deposit but have refused to refund the rent. I informed him verbally at the time of payment that it was non-refundable.

    What is my legal position? Am I entitled to withhold all or part of the money given that although I have referenced him, I haven't as yet handed him any signed documentation. I have racked up hard costs and taken the property of the market (once the cheque had cleared) and turned other prospective tenants away. In doing so have lost out on rent. Does a cooling off period apply here? Would the County Court find in his favour or mine?

    #2
    You may find this post helpful (by one of our legally qualified members).

    http://www.landlordzone.co.uk/forums...90&postcount=1

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      #3
      My advice to landlords and other agents would be to arrange for the tenancy agreement to be signed at the earliest possible opportunity (e.g. as soon as referencing is complete and cleared funds have been received). This way a binding tenancy (contract) has been created at the landlord is protected. Until the tenancy agreement is signed, the only agreement is likely to when the tenant signed a holding deposit or application form, and depending on how this is drafted, it may not be possible to retain any of the rent or deposit.
      Last edited by LandlordZONE; 14-06-2010, 10:25 AM.

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        #4
        Beresford Residential - please remove your advertising signature.

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          #5
          Spam reported.
          JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
          1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
          2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
          3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
          4. *- Contact info: click on my name (blue-highlight link).

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