By Ginny Morris

When filling out applications for housing, it is very important to know the terms for applying. Some landlords or mortgage companies charge an application deposit. This deposit amount usually averages between $25 and $35.

When filling out an application, be sure to read the entire contract, as it will contain important information on whether it's possible to get a refund on your application deposit, and how to go about applying for the refund. If your application is denied, does the contract state that you will receive a refund? If accepted, what happens to the deposit if you decide not to move in? If you are experiencing one of these situations, the following steps will assist you in getting your refund.

For a denied application, most contracts will state that the application deposit will be refunded in the case of denial. The deposit should be refunded at the time of turn down.

  1. If your contract stated anything else, the first step that you should take is to request the return of your funds.
  2. Depending on the response from the company or landlord, you would then want to find out whether the check for the deposit has cleared your bank account. If it has not, a stop payment can be placed on the item. Keep in mind, you will likely be charged a fee from your institution for the stop payment.
  3. If the check has already cleared your account, the only other option would be to take the situation to mediation or small claims court. This is a time-consuming step, and may not be worth it for the amount of money involved unless you're certain there was a breach of contract.

If you decide not to move in for any reason, refer to your contract. Some contracts will have a grace period; in this case, your deposit may be refundable if you were within the grace period time frame.

  1. The first step to take is to notify the landlord or mortgage company as soon as possible that you will not be taking the property.
  2. After hearing the response from the company or landlord, you would then want to find out whether the check for the deposit has cleared your bank account. If it has not, a stop payment can be placed on the item. Keep in mind you will likely be charged a fee from your institution for the stop payment.
  3. If the check has already cleared your account, the only other option would be to take the situation to mediation or small claims court. Again, this is a time-consuming step, and may not be worth it for the amount of money involved unless you're certain there was a breach of contract.