Received deposit BUT waiting on signed contract - argh

Growing a little frustrated and wanted to pick your brain on my next step. Canada Day, I got a message from a mom I met with few months back who wanted to sign on but didn't have the part time availabilty. She reached out again and I said yes to signing on her baby for September. I was leaving the week of July 4 to the cottage and she took the long weekend to read my handbook etc. After that weekend she said she would send me the deposit and drop off the signed contract while I was away. Its been a week since I got home and nothing. I reached out last Friday and she said "ran out of ink will drop it off tonight" so Monday I follow up (facebook) she read it and hasnt replied nor dropped it off. I have a depost with no contract as she sent the e transer while I was away. Should I send a message (again) saying do you want it or not? I mean I have turned away a family since then expecting this to be official. Im so annoyed by the lack of communication I want to give back her deposit and say "sorry" thoughts?

I take the deposit immediately, and give 1 week to fill out the contract and return it. Keep interviewing until you have the contract in hand.

I am not too worried about the contract if I have money already. It's up to you. Maybe give her a date you want it returned by

Since you turning away client and worried they might change mind and just accept lost deposit, I would send message.

Just say that you are turning away business and need the signed contract as well as deposit which you already had by set date or have to presume they changed mind. That you need to have both or will have to offer place to someone else since you unsure if they coming or not.

the delay and the excuses would make anyone stop and think that they have changed their mind

it is good to inform them that you need both before you go with a new client- it may make them rush the contract to you, it is annoying of a job half done

Curious how this would work for you ladies. If she has the money but no contract and family tells her 2 days before start date they changed their mind do they just forfeit their deposit or do they owe more? If she has both money and contract signed and same thing happens does it change things?

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Originally Posted by mickyc

Curious how this would work for you ladies. If she has the money but no contract and family tells her 2 days before start date they changed their mind do they just forfeit their deposit or do they owe more? If she has both money and contract signed and same thing happens does it change things?

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Technically, its kind of a grey area depending on how we wanted to go about it. Since she hasn't actually signed and delivered the contract she hasn't signed off on the fact that the deposit is non-refundable, therefor, I would be inclided to return it back (unless of course, I had something in writing: email or text where she had acknowledged that this was non-refundable which in my case there was not).

This is exactly why I added to my contract that there space would not be held or secure without BOTH contract and deposit which is to be delivered to me within 3 days. I was away for one week and accepted the etransfer with the expectation of it being in my mailbox upon my return. Having said that, in future I will really be enforcing that all documents including deposit are at the same time! UPDATE: I did email to remind her that her spot wasn't fully secure without the contract and that if I didn't hear back and have the contract by end of day today, I would have to assume she was no longer needing the space and I WOULD be returning the deposit (crappy!) but fortunately, that lit the fire and it was dropped off within the hour of the message :)

Also, I added to my handbook recently, that if they chose to not start care they forfeit their deposit and any other monies pay. That this was now a "holding fee" and care must commence in order for it to be applied. I have been burned a few times. Signed contract and deposit... they forfeit should the opt to not start care.

Thanks for the update
I hope she does not need a fire lit every pay day:) LOL

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Originally Posted by mickyc

Curious how this would work for you ladies. If she has the money but no contract and family tells her 2 days before start date they changed their mind do they just forfeit their deposit or do they owe more? If she has both money and contract signed and same thing happens does it change things?

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I require both to hold a place and that information given in e-mail when contract sent.

But, if I ever was in this situation, I would keep deposit. As soon as I have deposit, I always provide receipt. If in person, receipt given immediate. If deposit come from EMT, then receipt scanned and sent electronically. I not take cheque.

On receipt, I state money is "Non-refundable fee to enrol *child name* in daycare to start no later than *start date*". Because it not deposit for child care service, and it clear it not for a service, if they cancel when no service given, I not have refund. Enrolment has happen before child comes and if the change mind, they lose money.

They not owe more. They just lose what paid.

So without the signed contract there really is no agreement and if they change their mind you would legally need to return money (if no receipt given stating non-refundable)? Am I right?

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Originally Posted by mickyc

So without the signed contract there really is no agreement and if they change their mind you would legally need to return money (if no receipt given stating non-refundable)? Am I right?

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Not quite.

Without contact there no agreement about service to be provided and terms so you be unlikely to enforce paid notice period. But you can keep money in some circumstnaces but it not the non-refundable that make it non-refundable, it what the receipt for that make it non refundable.

If you take any money, you have to provide the service which it paid out for. If client cancel that service before it provided, then the money must be returned even if it say non-refundable.

My son explain this me long time ago.

So you can write receipt and say it for enrollment fee and non-refundable, and then keep money if they don't start because you did enrol them. Or you can write receipt and say it to hold place for daycare and non-refundable and if they change mind, you keep money. But if you write receipt for daycare service and never provide that service, even if the receipt/contract say non-refundable, it be hard to win in court of client demand money return because plenty of notice of change mind given.

I write out an agreement when I get paid a deposit. It states that it's non-refundable if they choose to find alternate dc but that once they start with me, it will be applied towards their last month of care

I actually went to small claims court for a situation just like this. Parents gave money but "changed minds". I actually ended up winning in court. You do not need to give the money back and if they have an issue with it they can take you to court (for such a small amount they most likely won't so don't even worry about that as I am the one who took the family to court). If you need some more info and need advice feel free to send me a message.