DEPOSIT REPLACEMENT Sample Clauses
The Deposit Replacement clause allows a party to substitute an existing deposit with a new form of security or payment. Typically, this means that if a tenant or buyer has provided a cash deposit, they may later replace it with a bond, letter of credit, or another acceptable financial instrument, subject to the agreement of the other party. This clause provides flexibility in how security is maintained under the contract, ensuring that the interests of the party holding the deposit are protected while accommodating changes in the depositor's circumstances or preferences.
DEPOSIT REPLACEMENT. 5.1 The Tenant has elected to use the Flatfair Service in place of the requirement for a Deposit to be paid and, subject to the terms of this Schedule, the Landlord agrees to waive the requirement for the Deposit (“Deposit Replacement”)
5.2 The Deposit Replacement shall come into effect following:
5.2.1 payment of the Flatfair membership fee payable in respect of the Tenancy Agreement (as further set out in the Membership Terms);
5.2.2 the Tenant entering into an agreement with Flatfair governed by the Tenant Membership Terms; and
5.2.3 the Landlord (or someone acting on behalf of the Landlord (an “Agent”)) entering into an agreement with Flatfair governed by the Flatfair Landlord Terms and Conditions.
5.3 Once the Deposit Replacement is in effect the parties agree to resolve any dispute regarding a breach of the Tenancy Agreement between the parties through the Flatfair Portal and in accordance with the Tenant Membership Terms and Flatfair Landlord Terms and Conditions as they apply to the Tenant and Landlord respectively. In particular:
5.3.1 the Tenant shall pay the Landlord any amount due in accordance with the Tenant Membership Terms through the Flatfair Service;
5.3.2 the Tenant agrees it cannot withhold payment of any instalment of the whole or part of the rent or any other monies payable under the Tenancy Agreement as a result of signing up to the Flatfair Service; and
5.3.3 at the end of the Tenancy Agreement:
(a) the Landlord or Agent shall notify the Tenant within 28 working days through the Flatfair Portal of any charge to be made to compensate the Landlord (including specifying the amounts to be charged and the reasons for any charges to be made);
(b) the Landlord shall keep a formal record of the reason for these charges and appropriate supporting documentation; and
(c) the Tenant may be charged, if applicable, following the procedures set out in the Tenant Membership Terms.