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Holding deposit 2025

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The Holding Deposit Agreement outlines the terms under which a rental property is reserved for an applicant upon receipt of a holding deposit. It specifies that the property will be taken off the market, and details the conditions for application approval, potential refund of the deposit, and consequences if the applicant fails to sign a rental agreement. The document also addresses 'lost rental damages' that may be deducted from the deposit if the applicant does not proceed with renting after approval.

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We have answers to the most popular questions from our customers. If you can't find an answer to your question, please contact us.

Is a holding deposit normal for an apartment?

Were used to seeing this practice in the retail industry, but did you know it is also commonplace in the rental world? Like an item at a clothing store, prospective tenants can reserve an apartment with a holding deposit before signing a lease agreement.

Can I get a deposit back if I change my mind?

If you decide to cancel something you paid a deposit for, the seller is usually not required to give your money back. In some cases, the seller might allow cancellations if you change your mind, depending on the terms and conditions (see above).

Can you change your mind after paying a holding deposit?

You should usually get all the money back if the landlord decides not to rent to you. The landlord or agent might keep your holding deposit if you: decide not to rent the property. give wrong information or tell them something that is false.

What does it mean to hold a deposit?

A deposit hold means that although a check amount was credited to your account, its not available for your use.

Is a deposit to hold something refundable?

A deposit is non-refundable if its reasonable at the time the contract was signed. In California law this concept is called liquidated damages. Parties to a written contract can agree in writing what is going to be the penalty for a party to break the agreement.

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Can I refund a holding deposit?

The landlord or agent must tell you why they are keeping the holding deposit. If they do not write to you with a reason within 7 days you have the right to a full refund, whatever the reason.

Can you cancel a holding deposit?

If you change your mind before you move in, you might need to negotiate to get out of the contract. If the landlord still has your holding deposit, you could say they can keep it. Make sure your landlord confirms any agreement to let you out of the contract in writing.

Holding deposit 2025

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