The Deadline for Agreement is the point at which most tenancies are expected to be set up. We've got more information about what the Deadline for Agreement is and how it is calculated here.
If the tenancy goes ahead:
So long as the tenancy set up is completed within seven days of the deadline for agreement passing the tenancy can go ahead as normal.
However, if it is going to take longer to finalise the agreement then we'd recommend that you agree to extend the deadline for agreement to avoid the situation where the holding deposit would need to be refunded.
If the tenancy falls through:
If the tenancy set up falls through after the deadline for agreement has passed, then the rules around whether or not the landlord can claim the holding deposit change:
For landlords
There are four grounds that a landlord can base a claim on a holding deposit on.
A landlord can only use Ground 2 to claim the holding deposit after the Deadline for Agreement has passed. To make a claim on this ground the Landlord must send a notice to the tenant stating why they intend to retain the holding deposit within 7 days of the deadline for agreement
To use the other three grounds the landlord must send written notice to the tenant that they intend to claim the holding deposit within 7 days of deciding not to enter into the tenancy and no later than 7 days after the deadline for agreement.
For Tenants
If it is more than seven days after the deadline for agreement, then tenants have the right to withdraw their application and reclaim the holding deposit.
Information on this site is by way of general guidance only and may not apply in your particular circumstances. You should not act or refrain from acting upon information on this site without seeking independent legal advice.