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Cleared Funds

  • When transferring money from a tenant or landlord account to an agent, money leaves the donor account but may take time to be received or visible in the agent's client account.  Letting rules require compliant letting agents to ensure they are in receipt of cleared funds prior to acting in reliance of those cleared funds.  An agent may be held negligent and responsible for the consequences of acting prematurely.  The temptation to do so is heightened by  pressure to act quickly in an emergency - agents must remain calm and wait!  See retention  if a letting agent stands as surety even for a small amount it acts contrary to all the rules!  Apart from the rules this is lending which requires a lenders license.
Published: 5 November 2013 Last Updated: 17 November 2021