Common use of Tenancy Deposit Clause in Contracts

Tenancy Deposit. 1.8.1 We will collect a deposit from your tenant, which will be held in accordance with tenancy deposit regulations. 1.8.2 The Agent is a member of the Tenancy Deposit Scheme: The Dispute Service Limited, 1 The Progression Centre ▇▇ ▇▇▇▇ ▇▇▇▇, Hemel Hempstead HP2 7DW. 0300 037 1000 ▇▇▇.▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇ ▇▇▇▇▇▇▇▇@▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇ 1.8.3 The Agent shall hold the deposit under the terms of the Tenancy Deposit Scheme. 1.8.4 If you the landlord decide to place the deposit in an alternative Government-approved scheme then we will normally transfer it to you within 5 days. You must then register it with another Tenancy Deposit Protection Scheme within a further 25 days (you have a total of 30 days from receipt in order to comply with the regulations) if the Tenancy is an Assured Shorthold Tenancy. If you fail to do so the tenant can take legal action against you in the County Court. The Court will make an order stating that you must pay the Deposit back to the tenant or lodge it with the custodial scheme which is known as the Deposit Protection Scheme. In addition a further order will be made requiring you to pay compensation to the tenant of between one and three times the amount of the Deposit. If a landlord fails to meet the initial requirement to protect the deposit, no Section 21 Notice can be served until either the landlord returns the deposit to the tenant in full or with such deductions as the tenant agrees; or if the tenant has taken proceedings against the landlord for non-protection and those proceedings have been concluded, withdrawn or settled (for example, by the court awarding damages being the return of the deposit or a fine not more than three times the value of the deposit). If a landlord fails to serve Prescribed Information, (s)he cannot serve a Section 21 Notice until the Prescribed Information has been served - but this can be more than 30 days after receiving the deposit. This will not prevent a tenant from issuing proceedings for late provision of the prescribed information and seeking a penalty award. Tenants can make an application to a county court for a penalty award even where the tenancy has ended, and can do so for up to six years. The Agent has no liability for any loss suffered if you fail to comply. 1.8.5 The Agent holds tenancy deposits as Stakeholder. This means that we only pay the deposit if: a) both landlord and tenant (and any Relevant Person) agree; or b) the court orders us to do so; or c) the Tenancy Deposit Scheme directs us to do so. 1.8.6 We must comply with the rules of the Scheme, and this means that we will not be able to act on your instructions with regard to the deposit if those instructions conflict with the Scheme rules. 1.8.7 If there is no dispute the Agent will keep any amounts agreed as deductions where expenditure has been incurred on behalf of the landlord, or repay the whole or the balance of the Deposit according to the conditions of the Tenancy Agreement with the landlord and the tenant. Payment of the Deposit will be made within 10 working days of written consent from both parties. 1.8.8 If, after 10 working days following notification of a dispute to the Agent/Member and reasonable attempts have been made in that time to resolve any differences of opinion, there remains an unresolved dispute between the landlord and the tenant over the allocation of the Deposit it will be submitted to the Independent Case Examiner for adjudication. These time scales can be changed by agreement with the tenant. All parties agree to co-operate with any adjudication. 1.8.9 The statutory rights of either you or the tenant(s) to take legal action against the other party remain unaffected. 1.8.10 It is not compulsory for the parties to refer the dispute to the ICE for adjudication. The parties may, if either party chooses to do so seek the decision of the Court. However, this process may take longer and may incur further costs. Judges may, because it is a condition of the Tenancy Agreement signed by both parties, refer the dispute back to the ICE for adjudication. If the parties do agree that the dispute should be resolved by the ICE, they must accept the decision of the ICE as final and binding. 1.8.11 If there is a dispute we must remit to The Dispute Service Ltd the full deposit, less any amounts already agreed by the parties and paid over to them. This must be done within 10 working days of being told that a dispute has been registered whether or not you want to contest it. Failure to do so will not delay the adjudication but The Dispute Service Ltd will take appropriate action to recover the deposit and discipline the Landlord/Agent. 1.8.12 The Agent must co-operate with the ICE in the adjudication of the dispute and follow any recommendations concerning the method of the resolution of the dispute.

Tenancy Deposit. 1.8.1 We will collect a deposit from your tenant, which will be held in accordance with tenancy deposit regulations. 1.8.2 The Agent is a member of the Tenancy Deposit Scheme: The Dispute Service Limited, 1 The Progression Centre ▇▇ ▇▇▇▇ ▇▇▇▇, Hemel Hempstead HP2 7DW▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇ ▇▇▇. 0300 037 1000 ▇▇▇.▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇ ▇▇▇▇▇▇▇▇@▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇ 1.8.3 The Agent shall hold the deposit under the terms of the Tenancy Deposit Scheme. 1.8.4 If you the landlord decide to place the deposit in an alternative Government-approved scheme then we will normally transfer it to you within 5 days. You must then register it with another Tenancy Deposit Protection Scheme within a further 25 days (you have a total of 30 days from receipt in order to comply with the regulations) if the Tenancy is an Assured Shorthold Tenancy. If you fail to do so the tenant can take legal action against you in the County Court. The Court will make an order stating that you must pay the Deposit back to the tenant or lodge it with the custodial scheme which is known as the Deposit Protection Scheme. In addition a further order will be made requiring you to pay compensation to the tenant of between one and three times the amount of the Deposit. If a landlord fails to meet the initial requirement to protect the deposit, no Section 21 Notice can be served until either the landlord returns the deposit to the tenant in full or with such deductions as the tenant agrees; or if the tenant has taken proceedings against the landlord for non-protection and those proceedings have been concluded, withdrawn or settled (for example, by the court awarding damages being the return of the deposit or a fine not more than three times the value of the deposit). If a landlord fails to serve Prescribed Information, (s)he cannot serve a Section 21 Notice until the Prescribed Information has been served - but this can be more than 30 days after receiving the deposit. This will not prevent a tenant from issuing proceedings for late provision of the prescribed information and seeking a penalty award. Tenants can make an application to a county court for a penalty award even where the tenancy has ended, and can do so for up to six years. The Agent has no liability for any loss suffered if you fail to comply. 1.8.5 The Agent holds tenancy deposits as Stakeholder. This means that we only pay the deposit if: a) both landlord and tenant (and any Relevant Person) agree; or b) the court orders us to do so; or c) the Tenancy Deposit Scheme directs us to do so. 1.8.6 We must comply with the rules of the Scheme, and this means that we will not be able to act on your instructions with regard to the deposit if those instructions conflict with the Scheme rules. 1.8.7 Like many Agents, we now routinely offer a deposit replacement product to our clients. This can open up your property to many more potential tenants and possibly minimise voids between tenancies. There is no additional cost to the landlord and you can learn more about the scheme here at ▇▇▇.▇▇▇▇▇▇▇.▇▇.▇▇. We will advertise this as an option when your property comes up for let/re-let but will confirm with you once a tenant is found before proceeding. 1.8.8 If there is no dispute the Agent will keep any amounts agreed as deductions where expenditure has been incurred on behalf of the landlord, or repay the whole or the balance of the Deposit according to the conditions of the Tenancy Agreement with the landlord and the tenant. Payment of the Deposit will be made within 10 working days of written consent from both parties. 1.8.8 1.8.9 If, after 10 working days following notification of a dispute to the Agent/Member and reasonable attempts have been made in that time to resolve any differences of opinion, there remains an unresolved dispute between the landlord and the tenant over the allocation of the Deposit it will be submitted to the Independent Case Examiner for adjudication. These time scales can be changed by agreement with the tenant. All parties agree to co-operate with any adjudication. 1.8.9 1.8.10 The statutory rights of either you or the tenant(s) to take legal action against the other party remain unaffected. 1.8.10 1.8.11 It is not compulsory for the parties to refer the dispute to the ICE for adjudication. The parties may, if either party chooses to do so seek the decision of the Court. However, this process may take longer and may incur further costs. Judges may, because it is a condition of the Tenancy Agreement signed by both parties, refer the dispute back to the ICE for adjudication. If the parties do agree that the dispute should be resolved by the ICE, they must accept the decision of the ICE as final and binding. 1.8.11 1.8.12 If there is a dispute we must remit to The Dispute Service Ltd the full deposit, less any amounts already agreed by the parties and paid over to them. This must be done within 10 working days of being told that a dispute has been registered whether or not you want to contest it. Failure to do so will not delay the adjudication but The Dispute Service Ltd will take appropriate action to recover the deposit and discipline the Landlord/Agent. 1.8.12 1.8.13 The Agent must co-operate with the ICE in the adjudication of the dispute and follow any recommendations concerning the method of the resolution of the dispute. 1.8.14 Dealing with disputes from non-ASTs: The ICE may agree to resolve any disputes over the allocation of these deposits, by arrangement. If they do: - The ICE will propose what they consider the most effective method of resolving the dispute. - Landlord, ▇▇▇▇▇▇ and Agent must consent in writing to his proposal. - Disputes will be subject to a fee of £60 (£50+VAT) or 10% of the deposit +VAT, whichever is the greater. - The resolution process will not start until the parties’ consent, the disputed amount and the fee have been submitted.