Refusing tenant application

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M
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I have prospective tenants who are about to be referenced. They have agreed to pay a holding deposit but as I have not yet received it I am still showing tenants the property. Am I correct in thinking that I can refuse tenants even if their references are ok as long as no tenancy agreement has been signed? Just a gut feeling but not sure they're suitable. I'd feel obliged to pay their referencing costs however and of course return their holding deposit. Is this reasonable or is my agreement to proceed to the referencing stage a verbal contract?
04/11/2011 00:00

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