Renting in Taiwan and unsure of the difference between earnest money, a holding deposit, and a Letter of Intent? Getting it wrong before you pay can cost you the money outright. This guide answers the 30 questions tenants ask most — from "can I get my money back if I change my mind?" to "is a Letter of Intent even legally binding?" — in plain English, backed by real cases and the relevant Civil Code articles.

Renting in Taiwan: Earnest Money, Deposits & Letters of Intent — The Complete FAQ (30 Questions Tenants Ask Most)

This FAQ is organized into five sections — "The Basics," "Before You Pay," "Disputes After Paying," "Letters of Intent," and "Where to Get Help" — covering the questions tenants most often run into when renting apartments, offices, or storefronts in Taiwan. Each answer ends with a short legal citation you can refer to if you need to dig deeper or file a complaint.

1. Are "earnest money" (定金) and "holding deposit" (訂金) the same thing?

Yes — treat them as exactly the same thing. The difference is purely in how the word is written; legally and in practice, it makes no difference whether a receipt says 訂金 or 定金. What actually matters is what both parties agreed the money was for.

Legal basis: Civil Code Articles 248 and 249.

2. What happens after you pay earnest money?

In short: once the earnest money changes hands, the lease is basically considered agreed. If either side backs out afterward, the law has a clear default rule for how it's handled —

●        Tenant backs out: the money usually can't be recovered.

●        Landlord backs out: the landlord must return double.

●        Neither side is at fault (e.g. a natural disaster): the money is returned in full, unchanged.

These three outcomes are the law's default treatment; if the receipt spells out something different, whatever's written on the receipt controls.

If you paid through an agent: once the earnest money reaches the agent, whether the deal is binding still depends on whether the landlord has "signed off to confirm" —

●        Landlord has signed off: the deal counts.

●        Landlord hasn't signed off, and there's no verbal agreement either: the deal doesn't count, and you can ask for a full refund.

●        If the landlord agreed verbally but there's now a dispute about it: you'll need to prove it happened, which makes things more complicated.

Legal basis: Civil Code Article 249.

3. Does paying earnest money mean the lease has already taken legal effect?

More or less, but not 100%. The law will initially "presume" that you've reached an agreement — but if the landlord later argues that the details were never actually finalized, they can still bring other evidence to dispute it. So before paying earnest money, it's worth confirming the key terms in writing (even just a Line chat) — lease term, rent, deposit, move-in date — so there's less room for disagreement later.

Legal basis: Civil Code Article 248.

4. What is a "Letter of Intent" (LOI), and how is it different from earnest money?

LOIs typically come up when several groups of tenants are competing for the same unit, or when the landlord won't accept earnest money directly (for example, at larger corporate landlords, where more layers of management and finance staff mean nobody is willing to sign off and collect a deposit on the spot) — so a Letter of Intent is used instead. The tenant uses the LOI to tell the landlord, "I'm committed to renting this, and I accept the terms." An LOI isn't a formal legal term on its own — whether it's binding depends entirely on whether it contains a clause like "forfeited if you back out." If it's simply a statement of interest, with no money involved and no default clause, it usually carries little weight.

5. If an LOI says "the holding fee is non-refundable if the tenant backs out," is that enforceable?

As long as both sides signed it voluntarily, this kind of clause is generally enforceable. In other words, it doesn't matter whether the document is called an "LOI" and the money called a "holding fee" — if there's a "non-refundable" clause, the law will most likely still treat it as earnest money, and you may genuinely lose that money if you back out. Read the non-refund conditions and the amount carefully before signing.

Legal basis: Civil Code Article 249, Item 2.

6. What's the difference between a security deposit and earnest money? Are they interchangeable?

Don't mix them up — they serve completely different purposes:

7. A receipt says "holding deposit," but the amount is large — is that normal?

There's no legal cap on the amount. In the market, half a month's to one month's rent is the most common range — but that's just convention, not a rule. If a landlord or agent asks for an amount that's noticeably higher (more than a month's rent, or even more), be cautious — this kind of situation is more prone to disputes or scams.

8. Do you always have to pay earnest money to rent a place?

It's not a legal requirement — it's just market convention. Earnest money lets the landlord confirm that "this tenant is serious," which comes up especially often for popular listings or when multiple groups are viewing the same place at once. If you'd rather not pay upfront, you can try negotiating with the landlord to pay the first month's rent plus deposit directly on signing day instead — but the listing may well get taken by another tenant willing to put down earnest money in the meantime.

9. What should you check before paying earnest money?

At minimum, confirm the following, and keep a written record wherever possible:

●        Whether the landlord's identity matches the property title and ID (if it's a sublease from a secondary landlord, ask to see proof that the original landlord approved the sublease)

●        Lease term, monthly rent, and deposit amount

●        The earnest money amount, and whether/how it's refundable if you back out

●        Move-in date, and whether there's a furniture/appliance inventory

●        Whether the money is going to the landlord directly or to an agent, and whether you'll get a proper receipt

10. Do you always need a receipt for earnest money? What happens if you don't get one?

Strongly recommended: always get a receipt, or at least keep a bank transfer record with a note like "rental earnest money." Without any written proof, if a dispute comes up, it's very hard for a tenant to prove they ever paid, or what the agreed refund terms were. A good receipt should clearly state: the date, the amount, both parties' names, the rental address, and what happens if either side backs out.

11. Can you just pay earnest money in cash?

You can, but it's not advisable if it puts the landlord in an awkward position. If a cash transaction later gets disputed by the landlord, it's very hard for the tenant to prove it happened. Prefer a bank transfer with a saved record, and make sure the account matches the landlord directly (or the agency's dedicated account); avoid sending money to an unrelated third-party account (or a personal account belonging to a sales rep).

12. Should earnest money go to the landlord directly, or can it go to an agent?

If you're not going through an agent — dealing directly with the landlord — then pay the landlord. If you're viewing the property through an agent, then you pay the agent, and the agent takes your terms to negotiate with the landlord on your behalf.

13. How much earnest money is reasonable? Can you negotiate the amount?

There's no legally set standard amount. In practice, it's commonly around NT$5,000–10,000, or roughly half a month's rent, depending on the area, property type, and the landlord's preference. In principle, this is negotiable.

14. If I pay earnest money and then change my mind, can I get it back?

Generally, no. Since the deal falling through is due to the tenant's own decision, the earnest money can't be reclaimed. Unless the receipt or LOI explicitly states otherwise (for example, "fully refundable within 7 days"), backing out will usually mean losing the earnest money.

Of course, this isn't an absolute rule either — some landlords are willing to refund it, but that's the exception rather than the norm.

Legal basis: Civil Code Article 249, Item 2.

15. If the landlord is the one who backs out, how much can I get back?

You can demand double the amount back. If you paid NT$50,000 in earnest money and the landlord backs out, in principle you can require them to return NT$100,000 (i.e., double the original amount).

Legal basis: Civil Code Article 249, Item 3.

16. The landlord says what they collected was a "good-faith deposit" (斡旋金), not "earnest money" — can they use that to avoid paying double?

That argument doesn't necessarily hold up. A "good-faith deposit" is typically used in property sales, but once that money has effectively become confirmation that both sides have agreed to rent, the law will usually still treat it as earnest money regardless of what it's called — a landlord can't dodge the double-repayment obligation simply by using a different label. That said, this still comes down to the specific facts of each case.

17. If the lease can't go through because of something like a pandemic, an earthquake, or the building being demolished, what happens to the earnest money?

If neither side is at fault (a natural disaster, government expropriation, or other force majeure), the earnest money should be refunded in full, unchanged — the landlord can't deduct anything by claiming they've "already incurred processing costs."

Legal basis: Civil Code Article 249, Item 4.

18. I already paid earnest money, but the landlord rented the place to someone else — what can I do?

This counts as a breach of contract on the landlord's side. You can:

1.   Put it in writing (Line, text message, email) demanding the landlord return double the earnest money;

2.   If the landlord ignores you, send a registered letter (存證信函) formally demanding payment, which creates a legal paper trail;

3.   If the amount isn't large, consider filing a small claims case (available for claims under NT$100,000, with a faster, cheaper process).

19. A receipt just says "holding deposit: NT$10,000" with no refund terms spelled out — how does that get decided in a dispute?

Courts will look at the overall picture — how the negotiation actually unfolded, the chat records between both sides — to determine what this payment was really meant to be, rather than just looking at the two words written on the receipt. This is exactly why it's worth spelling out in writing, before you pay, what happens if either side backs out — the more specific, the less room for later disagreement. Working with a professional agency can actually help you avoid this kind of dispute altogether.

20. I've already paid earnest money, but the landlord suddenly wants to raise the rent before signing — what can I do?

This is effectively the landlord unilaterally changing the terms you'd already agreed on. You can:

1.   Negotiate with the landlord over whether to accept the new rent — if you do, go ahead and sign;

2.   If you don't accept it, you can argue that the deal fell through due to the landlord's actions, and demand double the earnest money back.

21. An LOI states: "If the landlord ultimately chooses another tenant, the holding fee will be refunded plus additional compensation" — is this common, and is it reasonable?

Clauses like this, which protect the tenant, are sometimes offered proactively by rental platforms or property management companies that prioritize trustworthy dealings — and as long as both sides agree, they're legally valid. Before signing, pay particular attention to whether the "additional compensation" amount or formula is clearly spelled out, to avoid disagreements later. That said, it's worth noting: most LOIs typically carry no default penalty at all; if you want an enforceable default clause, in practice that usually means treating it as earnest money instead.

22. When is an LOI more commonly used instead of paying earnest money directly?

This commonly comes up when:

●        A highly sought-after listing — when the landlord is choosing between multiple groups of tenants, they may have everyone sign an LOI first so they can understand everyone's price and terms;

●        The tenant's qualifications (company background, lease terms, etc.) are still under review, and the landlord hasn't fully decided yet;

●        A large corporation or legal entity is renting — internally, this usually needs to go through an approval process (sign-off, board approval, etc.), so an LOI is often used first to show commitment while approval is pending, before formally signing.

23. After signing an LOI, can the landlord still rent the place to someone else?

It depends on what the LOI actually says. If it's simply a statement of "intent to rent," with no money involved and no default clause, the landlord may still legally be able to rent to someone else (even though that's not great etiquette). If the LOI involved a payment and included a clause requiring compensation if the landlord backs out, the tenant has a much stronger position. So when you sign an LOI, make sure it includes a specific default clause — don't let it get reduced to a vague line like "both parties agree to the intent to rent."

24. I work for a foreign company. My employer will handle the lease signing, but won't pay the earnest money for me — am I stuck relying on a verbal promise?

This situation is actually quite common. Foreign companies in Taiwan generally take one of two approaches: some simply pay employees more and let them handle their own housing arrangements; others require any lease the employee finds to go through the company's own signing process. This second approach can create a gap — some companies either can't pay earnest money directly, or their internal process takes too long — leaving the employee with nothing but a verbal commitment to hold the place. In this situation, first check whether your company has a clear policy. If not, and you really like a place, it's worth considering paying part of the earnest money yourself, especially during peak rental season, since the properties foreign employees tend to want are often in high demand. You can also reach out to UR House's expat rental team for professional guidance on improving your chances of securing the property.

25. If an LOI doesn't state an amount, and it's just a verbal promise to pay earnest money later, is that legally binding?

A verbal agreement is, in principle, still binding — the real problem is that it's very hard to prove after the fact. If the landlord later denies the conversation ever happened, it's difficult for the tenant to demonstrate what was actually agreed. Even when terms are agreed verbally, it's worth following up with a written message (Line, text) confirming the key points, so you have something to point to later.

26. The landlord refuses to refund my earnest money — where can I file a complaint?

A few options depending on the situation:

1.   Local government consumer service center / consumer protection officer: if the landlord qualifies as a business operator (e.g. a property management company), you can file a complaint under the Consumer Protection Act.

2.   City/county land administration bureau or rental dispute mediation committee: many cities and counties have a rental dispute mediation process — no litigation fees, and generally faster.

3.   Legal Aid Foundation: if you qualify, you may be able to get free legal consultation.

4.   Small claims court: for claims of NT$100,000 or less, you can use the small claims procedure, which is relatively simple.

27. How do you write a registered letter (存證信函)? Do you need a lawyer?

Not necessarily — post offices provide a standard format you can fill out yourself. It's generally recommended to include:

●        Both parties' basic information and the rental address

●        Payment date, amount, and supporting evidence (transfer records, receipts)

●        A clear demand for a response or refund within a specified deadline

The main point of a registered letter is to create a formal, documented demand — even if the other party ignores it, it still serves as evidence if the matter later goes to court.

28. I paid earnest money through an agent, and the agent has since gone unreachable — what should I do?

First, confirm whether this agent actually holds a valid real estate brokerage license and an active practicing certificate — you can look up company registration details to verify this. If you believe fraud or misappropriation is involved, you can file a police report with your local precinct, while keeping all transfer records and correspondence as evidence. Renting through a properly licensed agency with a real physical office significantly reduces this kind of risk.

UR House Realty has been serving the expat rental market in Taiwan for over 10 years and holds all required licensing; disputes like this are far less likely when renting through a properly licensed agency.

29. In a lawsuit over an earnest money dispute, what kind of evidence does the court typically look at?

Commonly relevant evidence includes:

●        Payment records (transfer details, receipts)

●        Correspondence between both parties (Line, texts, emails — especially anything discussing lease term, rent, or refund terms)

●        The LOI, receipt, or contract itself

●        Whether the property was subsequently rented to someone else (which can support a claim that the landlord breached the agreement)

Courts will weigh all of this evidence together to determine what both parties actually intended regarding the money.

30. Is there a way to avoid earnest money or LOI disputes before they happen?

You can reduce the risk at the source by:

1.   Prioritizing a properly licensed agency or management company with a real office and a good reputation;

2.   Always verifying the landlord's identity and property ownership before paying;

3.   Keeping written records or transfer records for every payment — even cash payments should always come with a receipt;

4.   Making sure the receipt or LOI clearly states the refund/default terms in writing, rather than relying on a verbal agreement;

5.   For larger amounts or more complex terms, having a professional (a lawyer or licensed land agent) review everything before you sign.

●        Civil Code Articles 248 and 249 (Earnest Money)

●        Civil Code Articles 421–425 (Leases)

●        Regulations on Residential Rental Market Development and Management

●        Mandatory and Prohibited Clauses for Standard Residential Lease Contracts (Ministry of the Interior)

●        Consumer Protection Act (provisions on standard form contracts)