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PDF Editor FAQ

Does a realtor have the right to withhold a security deposit collected before providing access to the lease agreement which is not signed due to unreasonable terms?

Does a realtor have the right to withhold a security deposit collected before providing access to the lease agreement which is not signed due to unreasonable terms?The answer to this question will vary depending on what the money was actually turned over to the Realtor® for.Pay close attention to the wording on your receipt (you got one, right??) — if it says “non refundable HOLDING deposit”, then no, this is not a security deposit, and can be collected from you in order to hold a property off the market. If you then don’t sign the lease as per the agreement when you turned over the money for the holding deposit, then you are likely out your money.If, however, your receipt actually states the money you turned over was for a SECURITY deposit, then it’s subject to the Landlord and Tenant Act of your particular state.If you aren’t sure which it was, or the Realtor® didn’t give you a receipt, and speaking to their broker hasn’t yielded any results, you can contact either the National Board of Realtor®’s or the local Board in your area to discuss your options. A Realtor® is bound by a code of ethics by these Boards.National Board of Realtor®’s = Contact Us

Would this hold up in small claims court? Put a holding deposit on a unit that we decided not to move in to. Landlord is refusing to return our $500 holding despite never providing us with a receipt or documentation that it would not be refundable.

So first of all, this is not legal advice and I am not a lawyer. Also, anything will depend on jurisdiction and specifics of the agreement.That being said, to me, it seems unlikely that you could get a refund of a holding deposit if you made the decision not to move in. As I understand it, the sole purpose of a holding deposit is for the landlord to keep in case you change your mind. This is because the landlord stops looking for other tenants and spends their own time and money to make appropriate arrangements for you to move in, so if you change your mind, the landlord gets to keep the holding deposit to cover their costs.

Would this hold up in small claims court? Landlord is refusing to return our $500 holding despite never providing us with a receipt or documentation that it would not be refundable. The unit was "off the market" for 3 days only.

What did you think a holding deposit was for? Legality is probably going to depend on your jurisdiction. Agreement to a ‘holding’ may be a verbal confirmation of verbal contract/understanding. Jurisdiction may dictate fair pricing.

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