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  1. #1
    Join Date
    Aug 2009
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    Default Deposit to Hold / Security Dep. - Can They Keep It

    My question involves a security deposit in the State of: California

    Hi. I recently signed a "Deposit to Hold" that states that our deposit to hold the property--which was $1200 (200 for dog, 1000 to hold property)--upon commencement of tenancy, will turn to a security deposit. it also states that in taking the property off the market and with the possible loss of rent, the deposit will be forfeited if the lease is not consumated. i have not signed a lease.

    now, for reasons out of my control, i can not move into this property. it has only been one week. is it possible to get any or all of this back? i feel that i should be able to. especially the dog portion...a dog has never entered the property and that portion is not typically included in the hold or the security deposit. also, the woman at the rental agency wrote that my lease would start in 2008, not 2009. does this help me out at all? another point to mention is that this company will only hold a property for 14 days...so it is not like they have to now wait a full month until the next 1st to rent, because they wouldn't have done that anyhow. given the circumstances of their policy, i think it would be fair to pay them a pro-rated rent amount per day that it was off the market -- as in, give them a weeks rent for the one week they took the sign down.

    if ANYONE can give me any advice/answers about this i would very much appreciate it. the sooner the better as i would like to deal with this ASAP.

  2. #2
    Join Date
    Sep 2005
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    Default Re: Deposit to Hold / Security Dep. - Can They Keep It

    Holding deposits are described here. The relevant material is quoted below (and I suggest reading through it.)

    If you agreed to forfeit the $1,000 if you didn't move in, that's what you agreed to do. Whether or not you also agreed to forfeit the $200 will depend upon the exact language of the contract.

    A typo or clerical error in a date won't void the contract - you know what date was intended.
    Quote Quoting Holding Deposit
    Sometimes, the tenant and the landlord will agree that the tenant will rent the unit, but the tenant cannot move in immediately. In this situation, the landlord may ask the tenant for a holding deposit. A holding deposit is a deposit to hold the rental unit for a stated period of time until the tenant pays the first month's rent and any security deposit. During this period, the landlord agrees not to rent the unit to anyone else. If the tenant changes his or her mind about moving in, the landlord may keep at least some of the holding deposit.

    Ask the following questions before you pay a holding deposit:

    • Will the deposit be applied to the first month's rent? If so, ask the landlord for a deposit receipt stating this. Applying the deposit to the first month's rent is a common practice.
    • Is any part of the holding deposit refundable if you change your mind about renting? As a general rule, if you change your mind, the landlord can keep some - and perhaps all - of your holding deposit. The amount that the landlord can keep depends on the costs that the landlord has incurred because you changed your mind - for example, additional advertising costs and lost rent.

    You may also lose your deposit even if the reason you can't rent is not your fault - for example, if you lose your job and cannot afford the rental unit.


    If you and the landlord agree that all or part of the deposit will be refunded to you in the event that you change your mind or can't move in make sure that the written receipt clearly states your agreement.


    A holding deposit merely guarantees that the landlord will not rent the unit to another person for a stated period of time. The holding deposit doesn't give the tenant the right to move into the rental unit. The tenant must first pay the first month's rent and all other required deposits within the holding period. Otherwise, the landlord can rent the unit to another person and keep all or part of the holding deposit.


    Suppose that the landlord rents to somebody else during the period for which you've paid a holding deposit, and you are still willing and able to move in. The landlord should, at a minimum, return the entire holding deposit to you. You may also want to talk with an attorney, legal aid organization, tenant-landlord program, or housing clinic about whether the landlord may be responsible for other costs that you may incur because of the loss of the rental unit.


    If you give the landlord a holding deposit when you submit the rental application, but the landlord does not accept you as a tenant, the landlord must return your entire holding deposit to you.

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