xmlns:atom="http://www.w3.org/2005/Atom" xmlns:atom="http://www.w3.org/2005/Atom"

Prospective

SCHEDULE 2E+WTreatment of Holding Deposit

ExceptionsE+W

5Paragraph 3(a) does not apply to the extent that the amount of the deposit is applied—

(a)towards the first payment of rent under the contract, or

(b)towards the payment of a security deposit under the contract.

6If all or part of the holding deposit is applied in accordance with paragraph 5(b), the amount applied is treated for the purposes of section 45 of the Renting Homes (Wales) Act 2016 (anaw 1) (requirement to use deposit schemes) as having been paid on the date the contract is made.

7Paragraph 3(b) does not apply if the contract-holder provides false or misleading information to the landlord or letting agent and—

(a)the landlord is reasonably entitled to take into account the difference between the information provided by the contract-holder and the correct information in deciding whether to grant a contract to the contract-holder, or

(b)the landlord is reasonably entitled to take the contract-holder's action in providing false or misleading information into account in deciding whether to grant such a contract.

8Paragraph 3(b) does not apply if the contract-holder notifies the landlord or letting agent before the deadline for agreement that the contract-holder has decided not to enter into a contract.

9Paragraph 3(b) does not apply in relation to a holding deposit paid to a landlord if—

(a)the landlord takes all reasonable steps to enter into a contract before the deadline for agreement, but

(b)the contract-holder fails to take all reasonable steps to enter into a contract before that date.

10Paragraph 3(b) does not apply in relation to a holding deposit paid to a letting agent if—

(a)the agent takes all reasonable steps to assist the landlord to enter into a contract before the deadline for agreement, and

(b)the landlord takes all reasonable steps to enter into a contract before that date, but

(c)the contract-holder fails to take all reasonable steps to enter into a contract before that date.