Holding Deposit Form

Holding Deposit Form: Reserve a Property on Clear Terms

A holding deposit form is a short agreement and receipt for a holding deposit, the payment a prospective tenant makes to reserve a rental property while checks are made and the tenancy agreement is prepared. It records the property, the landlord or letting agent, the tenants, the amount, the deadline for signing the tenancy, and exactly when the deposit will be refunded, kept or put towards the rent or tenancy deposit. Robot Lawyer drafts the form from your answers, for the law of the country or state you choose, and on the Verified plan a qualified legal professional checks it within 24 hours before you sign.

CONTENTS

What Is a Holding Deposit Form?

A holding deposit form (also called a holding deposit agreement or holding deposit receipt) is used when a landlord or letting agent takes a payment to take a property off the market for a prospective tenant.

A holding deposit is not rent and not the tenancy deposit, and paying it does not create a tenancy. A written form makes clear what the payment is for and avoids disputes if the tenancy does not go ahead.

When Should You Use One?

• Reserving a property
  When a prospective tenant wants to secure a property while checks are made.
• Letting agents
  When an agent takes a holding deposit for a landlord.
• Joint tenants
  When several tenants reserve a property together.
• Before signing the tenancy
  To set a deadline for agreeing the tenancy.

What's Included in Your Form?

• The property and parties
  The property, the landlord or agent, and the prospective tenants.
• The amount and payment
  The holding deposit, the rent and how and when the deposit is paid.
• Deadline for agreement
  The date by which the tenancy agreement must be signed.
• If the tenancy goes ahead
  Whether the deposit goes towards the rent or tenancy deposit, or is refunded.
• Refunds and when it can be kept
  When the deposit is refunded and the only cases in which it can be kept.
• Receipt and signatures
  Confirmation that the deposit has been received, with signature lines.

How to Take a Holding Deposit Properly

Disputes about holding deposits usually happen because the terms were never written down. Follow these steps:

• Agree the main terms first
  The rent, start date, length of the tenancy and any conditions, such as references, before taking any money.
• Check the limit
  Take no more than the law where the property is allows, and take only one holding deposit for the property at a time.
• Put it in writing
  Give the tenant the form before or when they pay, setting out the deadline for agreement and when the deposit is refunded or kept.
• Give a receipt
  Confirm the amount, the date it was paid and who paid it.
• Keep records
  Keep copies of references, emails and messages, as they show what happened if the deposit is kept.
• Act within the deadline
  Sign the tenancy, refund the deposit or explain in writing why it is kept, within the time the law and the form set.

Holding Deposit, Tenancy Deposit and Rent in Advance

A holding deposit reserves the property before the tenancy is signed. It is usually small, and once the tenancy goes ahead it is refunded or put towards the first rent or the tenancy deposit.

A tenancy deposit, also called a security deposit, is paid when the tenancy starts and is held as security against unpaid rent or damage until the tenant moves out. In many places it must be protected in a government-approved scheme. A Rent Deposit Deed can record how a deposit is held.

Rent in advance is simply the first rent payment made before the tenancy starts. Keeping these three payments separate in your paperwork avoids confusion about what has been paid, what is refundable and what can be deducted.

How It Works on Robot Lawyer

1. Answer the questions
   Tell us about the property, the tenants, the amount and the deadline.
2. Generate your form
   We draft a clear, fair holding deposit form from your answers.
3. Get it verified
   On the Verified plan, a qualified legal professional checks your form within 24 hours and makes amendments where needed. The Essentials plan does not include this check. See how our documents are verified.
4. Sign and take the deposit
   Download it, sign it with the prospective tenants and each keep a copy.

What Your Document Looks Like

Your form is a short numbered agreement: the parties and property, the purpose of the holding deposit, the amount and deadline for agreement, what happens if the tenancy goes ahead, when the deposit is refunded or kept, a receipt and signature lines. Here is an extract from a sample form we generated:

5. Refunds

5.1 Subject only to lawful retention under section 6, the Holding Deposit will be refunded in full:

within seven days beginning with the date the tenancy agreement is entered into, unless credited with the Payer’s consent under section 4;

within seven days beginning with the date the Landlord decides not to enter into the tenancy agreement; or

within seven days beginning with the Deadline for Agreement if no tenancy agreement has been entered into by that deadline.

How It Works in Different Countries

• UK
  In England and Wales, a holding deposit is capped at one week's rent and the deadline for agreeing the tenancy is 15 days unless agreed otherwise in writing. It must be refunded within 7 days unless the tenant gave false or misleading information, withdrew, or did not take reasonable steps to agree the tenancy by the deadline, or, in England only, failed a right to rent check. In England, the landlord must give written reasons within 7 days if it is kept. In Scotland, a holding deposit must always be refundable. Northern Ireland has no specific holding deposit rules, so the form's terms apply.
• United States
  Rules on holding deposits are set by each state and city, and some limit the amount or require a written receipt and a refund if the application is turned down.

These notes are general. Check the current rules where the property is.

Holding Deposit Form FAQs

Is a holding deposit the same as a tenancy deposit?

No. A holding deposit reserves the property before the tenancy starts. If the tenancy goes ahead, it can be put towards the first rent or the tenancy deposit.

How much can a holding deposit be?

That depends on where the property is. In England and Wales, no more than one week's rent.

When must a holding deposit be refunded?

Your form sets out when it is refunded, such as when the landlord decides not to go ahead, in line with the law where the property is.

When can the landlord keep it?

Only in the cases your form sets out, and only so far as the law allows.

Is a holding deposit refundable?

It depends on what happens and on the law where the property is. Your form says when it is refunded, put towards the rent or tenancy deposit, or kept, and the deadline for each.

Can a landlord take holding deposits from more than one applicant?

Good practice, and in some places the law, is to take only one holding deposit for a property at a time. Your form records one holding deposit for one prospective tenancy.

Can I use this form outside the UK?

Yes. Your form is drafted under the law of the country or state you choose. Our lawyers are qualified in England and Wales and, on the Verified plan, check documents for good practice, clear formatting and the law of England and Wales. They are not qualified in other countries' law, so if your form is governed by another country's law, we recommend having a local lawyer check it too.

Create a Holding Deposit Form

Reserve a property with a clear record of the deposit. You can start with a 7-day free trial. See our pricing for the plans. Related documents: Rent Deposit Deed and Property Inspection Report Form.