new contract no deposit?

[raydetinu]

Would like your views on this as friend has got this feature in new contract.

Presently in house on SPT for last 7 years through an agent, no problems.

Deposit ( £1000 ) protected through agent as stake holder.

 

 

Now LL has decided to not use agent anymore and tenant has signed new contract direct with same LL but with no deposit which will start in April 2014. ( LL cant be bothered to protect it ) and is OK with tenant (???).

 

 

I am assuming the agent will have to return deposit to tenant?? directly when new contract starts.

Not sure of what sort of dispute will arise between LL and agent as they don't know about it yet.

but will this affect paying out the deposit to the tenant.

any thoughts?

[mariner51]

Presumably the LA/LL contract has a termination clause, normally about 3 months, so LL gives LA due Notice and require that full deposit should be returned to T on/by expiry of LA/LL business relationship

IMO best to delay new no-deposit AST until after then, and check T has received deposit, possibly by T signing a receipt.. As you know LL is ultimately liable.

Hope you friend has a simple LA contract, which does not include liability for on-going fees for same T.

Just my suggestion.

[raydetinu]

Thanks but as far as I know contract already signed and starts in April! so he is expecting deposit back shortly after that?

We shall see! I suppose.

[mariner51]

In which case, LL repays deposit amount to T with deposit release to LL. LA then repays LL when deposit is released.?

[raydetinu]

cant see that happening? LA has the money in their account.

So guess tenant will have to wait until LA returns it direct.

can see it getting difficult as stuck in the middle of dispute between LL and LA.

[raydetinu]

update:

LL paid termination fee to LA, then LA paid deposit back to tenant. took a bit of time but got there in the end.