Restrictions Holding Deposits - from JUNE 2019

Section 1 -The Landlord or Agent Complete this section

We the Landlord / Agent

{{LANDLORD_FULLNAME}}

{{LANDLORD_COMPANYNAME}}

{{LANDLORD_ADDRESS_MULTILINE}}

Phone Number {{LANDLORD_PHONE}}

Email {{LANDLORD_EMAIL}}

Confirm we have received a Holding Deposit of *________________________________________

We received the Holding Deposit* on date________________________________________

In respect of a proposed tenancy for [address]__ The Landlord/ Agent agrees to hold the property

___{{TENANCY_ADDRESSPREFIX}}{{PROPERTY_ADDRESS_SINGLELINE}}_______________

The proposed rent is_________________per week/ month

Section 2 -The Prospective Tenant to Complete this section

Person Paying the Holding Deposit Name________________________________________

Current Full Address________________________________________

________________________________________________________________________________

Tenant Phone NumbersMobile ________________________________________

Landline _________________________Work _________________________Ext _______

TENANT PROPOSED MOVE IN DATE________________________________________

In the event the proposed tenancy does not proceed I would like my monies returning to

Account Name ________________________________________

Bank Sort Code ________________________________________

Account Number ________________________________________

In the event the tenancy proceeds the following monies shall become payable pre start date of tenancy date

Rent in advance_______

Tenancy Deposit( CANNOT be more than five weeks’ rent.

Unless annual rent is above £50K per an annum then the deposit

may be no more than 6 weeks._______

There are NO OTHER CHARGES (references, inventory etc all are NILL ) _NILL__

Total Payable £_______

Section 3 -Prospective Tenant EXTENSION REQUEST CONSENT

Should the prospective Tenant wish we use their Holding Deposit against their Tenancy Deposit or first months rent they MUST give us their consent.

I request the Landlord/Agent retain my Holding Deposit until the Proposed Tenancy move in date being X

[insert date here ___________________________________]

Section 4 - The Landlord / Agent agree shall not accept another Holding Deposit in respect of the specified property provided the prospective Tenant(s)

1.Facilitates that all named tenancy applicants complete their referencing and assist as and when required to ensure referencing can be completed within 7 days of the Holding Deposit fee being received

2.In the event we do not receive appropriate support this may result in us being unable to proceed with the proposed tenancy and The Holding Deposit incurring deductions – This is not something we wish to do.

3.We are lawfully bound to return your money after fifteenth day we receive it – In the event we do so we may offer the property to another person. Should you prefer we can give you more time and not offer the property to another person provided you have requested an extension to us retaining your monies for a longer period see above Section 3 -Prospective Tenant EXTENSION REQUEST CONSENT

Section 5 -In the event the tenancy does not proceed your holding deposit shall be returned in full provided

You notify us before the deadline for agreement of a tenancy agreement that the intended tenants [in whole or part] have decided not to enter into a tenancy agreement. The intended agreement date is the fifteenth day from which you paid your Holding Deposit. Unless EXTENDED USING SECTION 3 ABOVE

IN THE EVENT YOUR APPLICATION FOR A TENANCY IS DECLINED WE SHALL WRITE TO YOU WITHIN 7 DAYS of our decision but no later than 7 days after the DATE AGREEMENT FOR A TENANCY DATE or the requested extension date whichever is the later date.

In the event we propose to make deductions from your Holding deposit we shall notify you in writing within 7 days explaining why we intend to make such deductions. As example such deduction may be as a result of

1.You another applicant/ guarantor or other vested party have failed to take all reasonable steps to enter into a tenancy agreement before the intended agreement date. As an example, you fail to provided completed Tenancy application forms

2.The landlord or their Agent is prohibited by section 22 of the Immigration Act 2014 (persons disqualified by immigration status) from granting a tenancy of the housing to the tenant, the landlord/Agent did not know, and could not reasonably have been expected to know, the prohibition applied before the deposit was accepted,

3.The applicant(s) provides false or misleading information to the landlord or letting agent – which resulted in being unable to grant such a tenancy.

We the prospective/proposed tenant(s) have read and understood the following as detailed above

Section 1 -The Landlord or Agent Contact details

Section 2 -Provided my contact details, agree the property to be rented and payments due in respect of the proposed tenancy

Section 3 -Tenant EXTENSION REQUEST CONSENT

Section 4 - The Landlord / Agent agree shall not accept another Holding Deposit in respect of the specified property provided the proposed Tenant(s)

Section 5 -In the event the tenancy does not proceed your Holding Deposit shall be returned in full provided

THIS AGREEMENT IS GOVERNED BY THE LAWS OF ENGLAND AND WALES

1.A reference to the ‘Landlord’ includes the persons from time to time entitled to receive the rent; references to the ‘Prospective Tenant’ also include any persons deriving benefit under such.

2.All references to the singular or he she shall include the plural and vice versa.

3.No one else will benefit from this Agreement as permitted by the Contracts (Rights of Third Parties) Act 1999

4.If any term of this Agreement cannot be enforced or is found to be unfair, it does not affect the other terms of the Agreement.

5.If you do not understand your rights should seek advice from a solicitor, the Citizen’s Advice Bureau or your local authority housing officer.

LANDLORD LETTING AGENT NOTES ONLYThe tenant fee ban is full of pitfalls and you can be exposed to punitive fines up to £30,000 and unable to issue Section 21 Notices

DEPOSIT NO MORE THAN ONE WEEKS RENT - Unless annual rent is above £50K per an annum then the deposit may be no more than 6 weeks.For the purpose of calculation one weeks rent is the monthly rent multiplied by 12 and the divided by 52

YOU NEED CONSENT TO USE HOLDING FOR RENT / DEPOSIT Date for parties to agree the tenancy should be no more than 15 days from date Holding Deposit paid. If no extension agreed monies must be returned to the payee UNLESS extension agreed and that monies can be assigned to the Deposit or first rent due (see section 3 CONSENT)

TREATMENT OF DEPOSIT WHERE HOLDING DEPOSIT USED

Section 34 Schedule 2 Tenant Fee Act 2019 — Treatment of holding deposit part 7 states

If all or part of the amount of the [Holding] deposit is applied in accordance with paragraph 6(b), the mount applied is treated for the purposes of section 213 of the Housing Act 2004 (requirements in connection with deposits) as having been received by the landlord on the date of the tenancy agreement.

[does this date mean the date I sign the tenancy or the start date of the tenancy – they are not always the same date. Compliance dictates a deposit MUST be protected within 30 days of being received. So better advised to use the earliest date from which the 30-day rule applies from. Also, if the Tenant pays me the balance of the deposit 15 days before the Tenancy Date then the 30 days to protect is at the least from the earliest date ANY deposit monies received.

DEDUCTIONS FROM HOLDING DEPOSITS If it is considered the Agent or Landlord are behaves towards the tenant, or a person who is a relevant person in relation to the tenant, in such a way that it

would be unreasonable to expect the tenant to enter into a tenancy agreement it can be considered such

Deposit Holding fee MUST be returned in full.This is defined point 13 page 35 Schedule 2 —Treatment

of holding deposit

• Should you fail to return a holding deposit the proof is clearly on the landlord/ Letting Agent to justify their reasons and proof the tenants did not take all reasonable steps to enter the tenancy. The argument may then arise were the deductions unreasonable. If it is considered your actions/deductions are unreasonable you could be exposed to a fine

NO MORE THAN ONE DEPOSIT PER A PROPERTY AT ANY GIVEN TIME - We Can ONLY take one

holding deposit per a property – so multiple applicants means one holding deposit

A payment of a holding deposit is not a permitted payment if— (a) the landlord or letting agent to whom the deposit was paid has previously received a holding deposit (“the earlier deposit”) in relation to the same housing, (b) the landlord or letting agent has not repaid all or part of the earlier deposit, [this is provided that there are permissible deductions or the holding deposit has been correctly assigned against the Deposit of first rent payment]

The full legislation is published here

Englandhttp://www.legislation.gov.uk/ukpga/2019/4/pdfs/ukpga_20190004_en.pdf

Waleshttp://senedd.assembly.wales/mgIssueHistoryHome.aspx?IId=22120

THE OLD – HOLDING FEE FORM IS BELOW FORM IS BELOW

Thank you for your holding fee

Amount received_______

Prior to moving in the following are payable

Rent in advance_______

Deposit _______

Administration Fee _______

Referencing & Credit Checks_______

Inventory check in charge_______

Subtotal_______

Less Holding Fee received_______

The Landlord agrees to hold the property {{TENANCY_ADDRESSPREFIX}} {{PROPERTY_ADDRESS_SINGLELINE}}

Until the proposed moving in date of__________________________________________________

Your Holding Fee is refundable in full

1)If you instruct us not to commence referencing until 48 hours after this agreement is entered into and you withdraw from the proposed Tenancy within that period.

2)We are not satisfied with the references received and on proviso that we were not provided false or misleading referencing information

The Holding fee deposit is not refundable should you withdraw from this agreement, a charge will be deducted from the return of the Holding fee to cover our reasonable administration costs.