Holding Deposit at an Agency

[purple_rain]

Hi guys,

I was hoping for some advice on this.

I was contacted by an agency after sending out an email on a website stating that I was looking for a new room. I was taken to view the room in which I said I would need some time to consider my options. The agent suggested that I put down a holding deposit which I have done in the past with other agencies and on these occasions they were refundable. I paid the deposit (in cash) and then was handed a receipt in which it says that the deposit is to cover the admin fees and is non- refundable. In addition, should my references not check out they are also allowed to keep my deposit. I know it's probably my fault for being so naive, but I was just desperate to get out of this house.

Are there any guidelines on holding deposits? When is it acceptable for agencies to keep the money?


Thanks for the help in advice

[Lawcruncher]

Have a look here.

[purple_rain]

Thank you for replying

[ohdearme]

My agency asks for a deposit, say one week rent. This goes to the landlord who in return takes the property off the market pending references. It is a two way thing. If the landlord does not approve of the references, or withdraws for any other reason then the deposit is refundable.
If the deal goes ahead, the deposit is part of the start monies, deposit, rent, any agents, but we do not take fees for admin that are kept if the transaxtion falls through.
Hope this helps.

Alan