"holding deposit" paid - no contract from LL?

[Geordie08]

Hi all,

 

We went through an estate agents to find a flat. We found one we liked and were asked to pay a "holding deoposit" of £500 which would be non-refundable if we were to pull out of the contract.

 

We agreed, tranfered the cash and then filled out several forms to allow references / credit checks etc. Its has been almost 2 weeks since we handed over the money and we have not heard anything by way of a contract from the estate agents? I called the Credit Cehck company and they have confirmed that we passed everything and this was all returned to the estate agent a few days ago now.

 

I contacted the estate agents and they said that there were 1 or 2 things still outstanding which the LL has to provide them with and this is what is causing the delay. I asked what was outstanding, but they avoided the question and I didn't like to push the issue too much as the lady we are dealing with is a bit abrupt already.

 

We are now in an uncomfotrtable position where we do not have a contract for this flat, and time is ticking before we need to vacate our current flat (we had to serve our notice letter before our current LL would complete the credit check reference form for us).

 

If we pull out of this flat we will lose our "holding deposit" of £500. However, does there not come a point whereby the LL can be classified as having pulled-out of the agreement if they have not provided us with a contract to sign? Can the estate agent and LL just keep us waiting for as long as they see fit or can we do anything to either get a contract drawn up, or get our money back?

 

It seems unfair that they can avaoid paying us our money back whilst at the same time avoid signing a tenancy agreement with us.

 

Any advice appreciated!

[Steve__M]

Do you have copies of what you signed and agreed to?

 

If nothing has been agreed to in writing then in principle you may be able to get your money back, but you might have to sue on the basis that you have received no benefit for the money you have paid which is of course a chancy thing. In contract terms, for a contract to be formed both parties have to receive a benefit (known as consideration).

 

It maybe that things are going smoothly but slowly though. Absolutely, the agent has no right to be abrupt with you, and you have a right to be (politely) assertive. Put your concerns in writing too as it may be useful if things get legal.

 

Think about your options though. I assume there is no point in pulling out without sorting out an alternative. It might be worth explaining to your current landlord to see whether there is flexibility in move out date should there be a delay or cancellation.