Clarification - Deposit Protection Compliance
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3) Deposit BEFORE April 2007 and becoming periodic before April 2007 AND no new/renewal issued since - protect deposit before issue of Section 21 Notice otherwise section 21 invalid as ruled in court of appeal case Charalambous and Karali v Ng and Ng
- LEGAL REFERENCE Amendment in Legislation relating to deposits are Part 31.Tenancy deposits: non-compliance with requirements and 32.Tenancy deposits: deemed compliance with requirements
Clarity for Letting Agents - With Regards Prescribed Information
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This affirms that references contained in the Prescribed Information Order requirements that refer to 'The Landlord' also apply to the Letting Agent. This basically tidies up poor wording in previous legislation. Future proofing may require revisions to the Prescribed Information issued by Letting Agents but this is subject to later revision in Part 38 & 39 . In many respects these changes reflect how Letting Agents currently conduct themselves under scope of authority and in accordance with Section 48 of 1987 Landlord Tenant Act - so very little change here.
PIMS Members Guidance
Implementation time frames - effective immediately
Summary of Legislation The Deregulation Bill comprises of 116 parts, The Housing and development Section consists of parts relating to Deposits are
NOTE 1- Some commentators imply deposit protected within in 30 days but prescribed information issued after but pre service of Section 21 may be valid but this appears contrary to legislation 213 (3) of 2004 Housng Act - Being - Where a landlord receives a tenancy deposit in connection with a shorthold tenancy, the initial requirements of an authorised scheme must be complied with by the landlord in relation to the deposit within the period of 30 days beginning with the date on which it is received. The confusion arises in the drafting of legislation 215 1B (B) the initial requirements of an authorised scheme have been complied with by the landlord in relation to the deposit (ignoring any requirement to take particular steps within any specified period) we believe this applies to subsequent tenancies and does not cover failure to initially comply within 30 days.
The issue arise if not complied with contrary to Q7 application for possession using Section 21 Notice Court Application for possession will be invalid for as from June 2014 the courts now require a copy of your Deposit Protection Certificate as evidence. See Question 7 (a)(I);