When looking to rent a property, landlords often require a holding deposit from prospective tenants to secure the property. A holding deposit is a sum of money paid by a tenant to a landlord or their agent in order to reserve a property before the tenancy agreement is signed. The purpose of the holding deposit is to ensure that the tenant is serious about renting the property and to cover any losses incurred by the landlord if the tenant fails to move in.

If you are a tenant who is required to pay a holding deposit, it is important that you understand what it is and what it covers, as well as the terms of the holding deposit agreement. A holding deposit agreement is a legal document that outlines the terms and conditions of the holding deposit and provides protection for both the tenant and the landlord.

Here is an example of a holding deposit agreement:

Holding Deposit Agreement

This agreement is made between [name of landlord or agent] (the “Landlord”) and [name of tenant] (the “Tenant”) on 2024.

1. The Tenant agrees to pay a holding deposit of [amount] to the Landlord to secure the property located at [address] (the “Property”).

2. The holding deposit will be deducted from the first month`s rent or returned to the Tenant if the Landlord decides not to go ahead with the tenancy agreement.

3. The holding deposit will be forfeited if the Tenant decides not to proceed with the tenancy agreement, fails to provide accurate information during the referencing process, or breaches any of the terms of this agreement.

4. The Landlord agrees to hold the Property for the Tenant for a period of [number] days from the date of receipt of the holding deposit.

5. If the Tenant fails to sign the tenancy agreement within the agreed period, the Landlord reserves the right to void this agreement and withhold the holding deposit.

6. The Tenant understands that the holding deposit is not a security deposit and cannot be used to cover any damages or unpaid rent.

7. This agreement is subject to the terms and conditions of the tenancy agreement, which the Tenant agrees to sign within the agreed period.

8. In the event of any dispute, both parties agree to try to resolve it through negotiation and mediation before proceeding to legal action.

By signing below, the Tenant and the Landlord agree to the terms and conditions of this holding deposit agreement.

Landlord`s Signature: __________ Date: __________

Tenant`s Signature: __________ Date: __________

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