Hi All,
I am new to the forums, have been reading for a while and hopefully in the next few years will acquire my first investment property!
I have a question for those who know the tenancy laws.
My younger sister aged 19 and her fiance aged 23 recently put a holding deposit on a 2 bedroom unit which was the equivalent of one weeks rent. The PM told her that if their application was ok with the landlord they would be entitled to lease the unit in preferance of any other applicant.
The PM then told her that the landlord decided to go with another applicant. When enquiring if there was anything wrong with their application, the PM said there was nothing wrong with it, but the landlord chose another applicant for an undisclosed reason.
What is the point of the holding deposit then? We were all under the impression that if my sister and her fiance's application was fine then they were entitled to lease the unit? They both have stable employment, a good employment history and income was easily enough to meet the rent and other expenses.
Can anyone enlighten us as to why this happened?
To make things worse the RE then tried to dodge returning their holding deposit and it took 4 weeks to recieve.
Thankyou
Jade
I must admit I have had the same thoughts about a holding deposit. As far as I am aware, in NSW it doesn't guarantee you the property, the agent/vendor can't keep the money, and there is no componsation for you if they do decide to sell it to another party.
So, What is the point of the Holding Deposit? Do any of you serious NSW investors use a holding deposit? Why/Why not?
Not shure what sate you are in but below is relevent in Vic, this is an extract from the "Renting a Home A Guide for tenants & Landlords" published by consumer affairs in Vic.
The landlord or agent is permitted to
accept a deposit from a prospective
tenant.
This money must be refunded when
the ‘Residential Tenancy Agreement’
is signed by both parties.
If no tenancy agreement is made
within 14 days, the money needs to
be refunded by the next business day.
A $500 fine can be imposed for not
refunding the money.
You may want to check the consumer affairs website in your state
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