Letter to Prospective Contract-Holder Sending Holding Deposit Specified Information (Wales)

This Letter to Prospective Contract-holder Sending Specified Information (Wales) is for use by a landlord or letting agent in Wales who wishes to collect a holding deposit from a prospective contract-holder to secure an occupation contract whilst reference checks are carried out.  Letting agents must have the authority and consent from the landlord to collect a holding deposit in respect of the prospective occupation contract prior to sending out this letter.

Under The Renting Homes (Fees etc.) (Holding Deposit) (Specified Information) (Wales) Regulations 2019, letting agents in Wales are required to provide certain information and documentation to prospective contract-holders prior to collecting a holding deposit to secure an occupation contract.  Failure to provide this information means that the landlord cannot rely upon certain exceptions to retain a holding deposit (for example, where the contract-holder fails to take all reasonable steps to enter into the occupation contract and where the contract-holder notifies the landlord that they do not wish to enter into the occupation contract) and the holding deposit must be repaid.

The information required, and referred to in the template, is:

· The amount of the holding deposit;

· The address of the property in respect of which the deposit is paid;

· Where a holding deposit is to be paid to a letting agent, the name and contact details of that letting agent;

· Duration of the contract;

· Proposed occupation date;

· Amount of rent or other consideration;

· Rental period;

· Additional proposed contract terms (the template provides for the draft occupation contract/written statement to be enclosed);

· Amount of any security deposit;

· Whether a guarantor is required and, if so, any relevant conditions;

· Reference checks to be undertaken; and

· Information required from the contract-holder (the template provides for a copy of the application form to be enclosed).

The prospective contract-holder is asked to sign a copy of the letter and return it to the landlord or letting agent to confirm receipt. A separate letter should be sent to each contract-holder and adult occupier if there is more than one.

The letter can be given to the prospective contract-holder in person or sent by email, however, it can only be sent electronically with the prospective contract-holder’s prior written consent. There is a provision in the template occupation contract application form for the prospective contract-holder to consent to receipt of the Specified Information by email.

This template letter references guarantee agreements and occupation contract application forms and templates can be found in the Standard Occupation Contracts, Model Written Statements & Pre-Contract Documents subfolder.

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