If landlords accept holding deposits can they still accept higher offers?
A holding deposit (reservation deposit) is intended to reserve a letting, and the landlord/agent does this by taking the property off the market, though new enquiries should still be recorded.
All holding deposits should be evidenced by a Holding Deposit Agreement which also acts as a receipt and is signed and copied to both parties.
The Agreement makes it clear what will happen if either party backs out.
The agreement should also be “subject to contract” – see the LandlordZONE Holding Deposit Agreement below.
In other words, neither party is contractually bound to go through with the letting if they change their mind, but both are bound by the holding agreement if they back out, i.e., tenant forfeits or landlord repays the whole.
©LandlordZONE All Rights Reserved – never rely totally on these standard answers which apply primarily to England & Wales. Before taking action or not, always do your own research and/or seek professional advice with the full facts of the case and all documents to hand.
Holding Deposits:http://www.landlordzone.co.uk/content/tenancy-deposit-scheme-2©LandlordZONE® – legal content applies primarily to England and is not a definitive statement of the law; always seek professional advice. Legislation changes, so check dates on these articles. If you have questions go to the LandlordZONE® Forums