Agent hanging onto deposit?

Question

We put a deposit down on a rental property on Saturday and signed for it, however it was all reliant on the landlord agreeing to let us the property. This was unusual to begin with as I have only put money down in the past when it was a done deal and the property was definitely ours. However we agreed and did so, knowing that it was refundable if she said no, but non-refundable if we subsequently pulled out.

The landlord decided they wanted more money for the property so we raised our offer yesterday and are still waiting to hear back - but we now want out because she is taking too long. We cannot pull our money out but we can argue that they are keeping the money unreasonably. If I was to demand our money back on these grounds, could the agency say no or are they obliged to give the money back?

Answer 1

"non-refundable if we subsequently pulled out"

Answer 2

Like you said "non-refundable" if you pull out.  Never make a mistake of putting down a deposit if the paper work is not done.  What you could do is go ahead with your arguement that the process is taking too long and that the price isn't what you thought it would be.  The problem will be, unfortunatly, that you knew that this deal was still up in the air and you agreed to it anyways by putting the down payment. There are alot of scams out there like this one.  Try to prove that this is a scam maybe that will work in your favor.

Answer 3

ASAP write a letter that you are no longer interested in the rental since you had not received approval.

In other words, until both parties agree, there is no contract.  If they agree to your offer then there is a contract. Until then, EITHER party can walk. However, do this in writing and do it ASAP.  Don't call them to tell them, because the first one to put their "stuff" in writing wins.

Answer 4

What you signed on Saturday would probably be considered an offer.  It should have included some key items such as the parties to the agreement, consideration (earnest money or deposit), amount of rent, length of lease, amount of time the landlord had to accept the offer.

If these key elements of an offer are present then any change in these elements prior to the landlord accepting it is a counter offer that you may either accept or reject.  If you reject the counter offer, you are entitled to return of your deposit (valuable consideration).

When you made your new offer "yesterday" it again should have all the key elements listed above.  If it is an oral offer, you may recind the offer any time prior to the landlord accepting it. However as you stated that the deposit is "non-refundable if we subsequently pull out", so I assume it is in writing.....if so, there should be a time limit on the landlord to act on the offer.  Otherwise it is assumed to be "a reasonable amount of time".  Depending on the circumstances "resonable" could be 24 hours or a week. Typically a couple of days should be enough time for a landlord to decide.