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Were in NC & were planning on renting a house. We told the real estate agent that we want to go over the lease, potentially sign it, and then go from there. She agreed to that, but asked for part of the security deposit as a "holding deposit". NOT an actual holding deposit, but just a portion of security deposit and pay the rest upon move in. We paid $260. We have a receipt & nowhere on the receipt does it say anything about a fee, it says "security deposit". This was from 2 days ago. Today we decided against moving home for a few different reasons, one being that we've heard terrible things about the real estate agent (of course) & because we have decided to relocate after my husband gets out of the military, to a different state. Anyway, we informed them that we are not moving in. We have signed nothing, no agreement, no lease, no nothing. Would we not be entitled to our $260 back?! We were never told this was "non refundable" if we decided not to move in. Plus, if this is "security deposit" money & state of NC claims LL can keep deposit due to unpaid rent, damage to property, or something similar to that....how could they be entitled to keep it?! We didn't live a day at the property. Also, they said they're keeping it because they took it off of the market for us......the house was still posted the entire day or two that we had a "holding deposit", they didn't take it off anything.
In my opinion, since you neither signed a lease nor entered into a verbal contract and the deposit was clearly noted as a "security deposit", that deposit must be returned to you. Had they accepted it as a "holding deposit" that would be different. Check the NC laws concerning security deposits (you'll find the state landlord tenant laws linked in the first "sticky" on this forum) but I'm 99.99% sure I'm right.
Write them a short letter advising that the money you gave them was clearly receipted as a security deposit and not a holding deposit and that if they don't return it to you within seven days you will "pursue the matter further". That will probably do the trick.
In my opinion, since you neither signed a lease nor entered into a verbal contract and the deposit was clearly noted as a "security deposit", that deposit must be returned to you. Had they accepted it as a "holding deposit" that would be different. Check the NC laws concerning security deposits (you'll find the state landlord tenant laws linked in the first "sticky" on this forum) but I'm 99.99% sure I'm right.
Write them a short letter advising that the money you gave them was clearly receipted as a security deposit and not a holding deposit and that if they don't return it to you within seven days you will "pursue the matter further". That will probably do the trick.
While I hear your argument.....what would be the point of paying a Security Deposit without a lease?
In my opinion, the only reason someone would pay ANY money before a lease is signed is to guarantee that they will reserve the space. Essentially, this is all non-refundable. If it would be refundable, why would anyone not just dump money on any property they may be interested in?
While I hear your argument.....what would be the point of paying a Security Deposit without a lease?
In my opinion, the only reason someone would pay ANY money before a lease is signed is to guarantee that they will reserve the space. Essentially, this is all non-refundable. If it would be refundable, why would anyone not just dump money on any property they may be interested in?
You are 100% correct and you would be 100% within your rights as a landlord to retain the money in accordance with state law. BUT, in this case, the landlord messed up by stating it was a "Security Deposit". Since the landlord called it a "security deposit" and not something else, they clearly wanted it treated as a "security deposit" and they have to live by the laws related to "security deposits".
The OP stated it was partially holding money and it was stated to her....there might be more proof or witnesses to that statement.
To me it is not a clear case and the other side may have more proof.
Why would you give money if it wasn't for holding prior to signing the lease? Law is also often about common sense and in this case where the OP is stating the deposit was allowed to be paid in partial payments it very much sounds like holding money.
The OP stated it was partially holding money and it was stated to her....there might be more proof or witnesses to that statement.
The OP said, "She agreed to that, but asked for part of the security deposit as a "holding deposit". NOT an actual holding deposit, but just a portion of security deposit and pay the rest upon move in."
The written receipt notes it as a security deposit not a holding deposit. I see no ambiguity there. The agent messed up.
Why would you give money if it wasn't for holding prior to signing the lease?
The question is whether the payment was made with a known risk of it being NON refundable.
It sounds like that is not the case.
This is also why most wiser heads have shifted to calling these payments FEE's.
Had the OP seen the word FEE... they would have questioned it more and probably NOT paid it.
Yes, thank you. We were never explained it to be a holding fee where it was non refundable. We made it clear that we wanted to go over the lease before signing anything or moving in & that depending on that, and upon discussing it together, we would come to a decision/agreement. We thought we were putting down part of a "security deposit", which clearly is stated on the receipt, had we been told, asked to sigh something, we're written a receipt that said holding fee we would have absolutely not given them money!
I have contacted the owner of the real estate company (who we worked with) via Facebook and text, asking if she could please show me the papers that we signed that claimed they were entitled to this money (we signed nothing that stated that, and I know this for a fact), but she has been reading my messages and ignoring them. I'm thinking that she thought we'd just "okay" her keeping our money & not think twice about whether she is ENTITLED to or not....so I'm kind of stuck as to where to take it from here.
I've been looking up North Carolina renting laws, and no where can I find anything about holding deposits. I have read somewhere that "holding deposits are legal in some states". Which lead me to believe that they are not legal in all, and sounds like not legal in many, and NC has nothing about it at all....so maybe not even legal here? I'm not sure. Although I have read "security deposit" laws VERY clearly, and if this was "security deposit" money, as clearly stated it was, we would be entitled to every penny back!
Write a letter as suggested earlier and send it return receipt certified mail. First things first.
Thank you. I am going to send a letter, message, or email letting them know about the receipt being a security deposit & asking for the refund back before taking legal action in the next week. I appreciate your help!
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