APPLICATION DEPOSIT. A holding deposit is generally taken from a tenant applying to rent a property. The purpose of this payment is to verify the Tenant's serious intent to proceed, and to protect the Agent against any administrative expenses (taking out references, conducting viewings, re-advertising) that may be incurred should the Tenant decide to withdraw the application. The application deposit does not protect the Landlord against loss of rent due to the Tenant deciding to withdraw, or references proving unsuitable although early acceptance of rent from the applicant would not be advisable until satisfactory references have been received.
Appears in 2 contracts
Sources: Landlord Agency Agreement, Landlord Agency Agreement