Can a house rental agency refuse to return my deposit, I was made redundant and couldn't afford to continue with the deal

If you break a lease... if that's ALL they want to let you out of it (your signed lease) ... count your blessings. They legally can sue you and hold you responsible for the ENTIRE amount until the end of the lease or until they are able to find someone else. And you would lose.

I am assuming you have a legally signed lease. Or they took it off the market while you were ready to sign one.

If that's the case then yes they can...that deposit was a promise made to complete the transaction and they lost time and money if you didn't.

If you were month to month with an expired lease, then its different. They could only withhold it if they can prove damages to the property equaling that amount or more (they would have to present you copies of this). Or they would have to return it.


Lot depends on the details you left out.

They only had my deposit for 7 days. And I signed nothing.

Its impossible to answer this without knowing the terms. Also ANY question on law needs to include your general local as laws vary by area.

The bottom line is yes, they can. But that is dependent on local laws and the terms. You obviously did sign something, the check for the deposit. The purpose of a deposit is to hold something for you until the deal is completed. Sometimes deposits are refundable, sometimes they aren't.

Are they refusing to return the deposit? If so, then ask them to show you where it was stated that the deposit was non-refundable.

Can they do it, of course they can. Can the do it legally? That depends on the area you live and the verbal (or written agreement)

If you give a deposit and agree to rent a house or apartment, you are obligated to paying normally at least (and often more) the first month rent. The deposit is not really "keep" but it is applied to money you owe them.

You would, in most places, owe the first month rent, which would be taken out of any deposit.

Thank you all for your informative replies. The situation as it stands at the moment is I've lost the deposit. It was verbal agreement for the agent to reserve the house for me until the legal documents could be signed. I had to give back word due to me being made redundant.they say that because I gave back word I've lost the deposit and refuse to listen to my reasons for giving back word.

The reason doesn't matter. If it was a non refundable deposit then they have the right to keep it. You should NEVER tender money without a written agreement. Since it was verbal, you have to proof that the deposit was not refundable.

If you signed nothing then a small claims case against them for return of the deposit and attorney/filing fees is your course of action. How else would you know the deposit was nonrefundable unless it was in writing, or they told you before you tendered any money?

The burden of proof is on them that the deposit was nonrefundable and you knew that going in.

What state?

Quote:

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I had to give back word due to me being made redundant

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I see it as they got laid off. So money is tight and they believe that is an excuse to get out of a contract without any financial penalty on their part. Despite the fact the rental agency took the property off the market for them (causing a financial loss on their end if it didn't complete) waiting for them to complete the transaction.

If my interpretation of the situation is incorrect... perhaps the OP can comment further.

And of course....a Country (as this is an international site) and a state would be helpful.

Tal, I'm going to have to disagree. A deposit would be considered non refundable unless specified otherwise. Plus, all the agency has to say is they told the OP it was non refundable and the OP has no proof they didn't.