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What Is The Meaning of Let Agreed?

Last updated on 24th April, 2024

If you’re in the process of searching for a rental property, you may have come across the term “let agreed.” But what exactly does it mean? Is a “let agreed” property still available for rent? In this comprehensive guide, we’ll answer all your questions about “let agreed” properties and provide you with a clear understanding of the rental process.

What is “Let Agreed”

When a rental property is marked as “let agreed,” it means that the landlord has agreed in principle to allow a tenant to rent the property. However, it’s important to note that no legally binding documents have been signed at this stage. Both the landlord and the tenant have committed to proceeding with the rental agreement, subject to credit and Right to Rent checks, as well as referencing.

Difference Between “Let” and “Let Agreed”

To distinguish between “let” and “let agreed,” it’s important to understand the legal status of each. When a property is marked as “let,” it means that a formal agreement between the landlord and tenant is already in place. The tenant has either moved into the property or is about to do so. On the other hand, a property marked as “let agreed” indicates that no legal agreement has been finalized, and the tenant must still pass credit and Right to Rent checks, along with referencing.

The Process of a “Let Agreed” Property

Once a property is marked as “let agreed,” several stages need to be completed before the tenancy becomes legally binding. Let’s take a closer look at each stage:

1. The Tenant Pays a Holding Deposit

To secure the property as “let agreed” while the landlord or letting agent conducts referencing and other checks, the tenant must pay a holding deposit. According to the Tenant Fees Act 2019, the holding deposit is capped at no more than one week’s rent.

After agreeing, the holding deposit must be repaid within seven days of signing the agreement. Alternatively, it can be put towards the tenant’s security deposit or first rent payment. However, there are circumstances under which the landlord may withhold the holding deposit, such as if the tenant decides not to rent the property or fails a Right to Rent check.

2. Credit Checks and Referencing

When a property is “let agreed,” the landlord or their agent checks the tenant’s credit and references to see if they’re a good fit. The tenant usually needs to give their address history for three years, contacts of previous landlords, proof of income, and employer details. They also do checks to confirm the tenant’s right to live in the country.

3. Tenancy Agreement and Deposit

Once the tenant clears credit checks, referencing, and Right to Rent checks, they’ll be requested to sign a tenancy agreement. This shifts the property status from “let agreed” to “let,” making the agreement legally binding for the agreed fixed term of the tenancy.

Are let-agreed homes still on the market?

Technically, Let Agreed properties are still on the market, but their availability is limited. When a property is marked as Let Agreed, it means that another tenant has shown a strong interest and is currently undergoing the necessary checks. In reality, the property will likely be off the market soon.

The question then arises, why keep Let Agreed properties on the market at all? The primary reason is that while it is probable that Let Agreed properties will transition to being Let, it is not always guaranteed. Sometimes, one or more of the checks may not be cleared, or either party may have a change of heart. Tenants may have second thoughts, or landlords may decide not to proceed with the rental. Until both parties have signed a tenancy agreement, the deal remains in a precarious balance.

Can a “Let Agreed” Property Fall Through?

Yes, a “let agreed” property can fall through for various reasons. Some common scenarios include:

  • The tenant decides not to proceed with the tenancy.
  • The tenant fails to credit, reference, or Right to Rent checks.

In such cases, the property returns to the market, and the landlord or their letting agent will continue searching for a suitable tenant.

Pursuing a Let Agreed Property

If you see a property marked as “Let Agreed” and really like it, you might wonder if it’s still possible to get it. It’s tough to secure a property that’s already marked as “Let Agreed,” but it’s not completely impossible. Our recommendation would be to make an inquiry, expressing your interest to the agent handling the property. However, it is essential to keep your expectations in check and not put all your hopes into this particular property.

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