Tenacy deposit protection

As from 6th April 2007 all tenancy deposits taken must be protected in a government approved scheme.

CPSL is using a scheme called "The Dispute Service" which is one of three schemes authorised by the govenrment.

What does this mean to you as a tenant?

For our managed properties within 14 days of taking deposit monies from you we will contact you and confirm that your money has been registered with the scheme and provide you with a certificate from TDS together with explanatory notes on how to operate the scheme.

Tenants who are taking unmanaged properties from us will receive notification that their deposit monies have been transferred to their landlord who will be responsible for safeguarding deposits in these cases.

At the end of the tenancy Managed tenants will be notified of their responsibilities and formally checked out of the property. Any delapidations will be noted and if possible agreed. Agreed / undisputed monies will be paid back to the tenant within 10 working days.

The following clauses will be included with AST Tenancy Agreements for tenants safeguarded under The Dispute Service:

PRESCRIBED INFORMATION

Housing Act 2004

A.1 This information is prescribed under the Housing Act 2004. That means that the two parties to the Tenancy Agreement must be made aware of their rights during and at the end of the Tenancy regarding the protection of and deductions from the Deposit.

A.1.1 Name of Landlord(s): ______________________________________

_______________________________________________

A.1.2 Actual address of the Deposit Holder:

______________________________________________________________________

A.1.3 E mail address of the Deposit Holder (if applicable):

_______________________________________________________

A.1.4 Telephone number of the Deposit Holder:

______________________________________________________

A.1.5 Fax number (if applicable):

_______________________________________________

A.1.6 Tenant(s) name:

______________________________________________________________________

A.1.7 Address for contact after the tenancy ends (if known):

A.1.8 E mail address for Tenant (if applicable):

______________________________________________________________________

A.1.9 Mobile/Telephone number:

_____________________________________________________________________

A.1.10 Fax number (if applicable)__________________________________________

Please provide the details requested in A.1.6 – 10 for other relevant persons (i.e. agent, guarantor paying the Deposit etc)

A.1.11 Deposit: £_______________________

Deductions may be made from the Deposit according to clauses (insert number from the Agent’s or Landlord’s Tenancy Agreement) of the Tenancy Agreement attached.

A leaflet explaining how the Deposit is protected by the Housing Act 2004 will be provided to the Tenant by the person holding the Deposit being (insert name).

The holder of the Deposit will register the Deposit with and provide other required information to the Tenancy Deposit Scheme within 14 days of the commencement of the Tenancy or the taking of the Deposit whichever is earlier and provide proof to the Tenant of compliance. If the holder of the Deposit fails to provide proof within 14 days the Tenant should take independent legal advice from a solicitor, Citizens Advice Bureau (CAB) or other housing advisory service.

The procedure for instigating a dispute regarding deductions from the Deposit at the end of the Tenancy are explained in clauses (insert numbers) shown below. No deductions can be made from the Deposit without written consent from both parties to the Tenancy Agreement.

Procedure for Dispute at the End of the Tenancy

• When the landlord and tenant agree how the deposit should be returned, in full or in part, it must be paid back within 10 working days. Failure to return the deposit within the specified period will be grounds for the tenant to refer the matter directly to the Independent Case Examiner (“ICE”).
• The Member must tell the tenant within 10 working days of the end of the tenancy, (or as specified in the tenancy agreement) if they propose to make any deductions from the deposit.
• The tenants should make their best endeavours to inform the Agent/Member if they wish to raise a dispute about the deposit within 20 working days* after the lawful end of the tenancy and vacation of the property. The Member/Agent has a maximum of 10 working days* to resolve the dispute
• It is not compulsory for the parties to refer the dispute to the ICE for adjudication. They may, if they choose, seek the decision of the Court. However, this 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 as final and binding.
• The Agent, the Landlord or the Tenant can instigate a dispute by completing the Notification of Dispute form (TDS.2) and submitting it to the ICE. The form can be downloaded from the website www.tds.gb.com or be obtained directly from The Dispute Service Ltd at the address or telephone number specified in clause (insert number) of the attached Tenancy Agreement.
• If the Agent/Member instigates a dispute they must send with the Notification of Dispute to the TDS the full deposit, less any amounts already agreed by the parties and repaid. Where one of the parties to the Tenancy raises the dispute, the Agent/Member must send the deposit or the balance in dispute together with the relevant evidence being a copy of the tenancy agreement, inventory and schedule of condition, any check in or check out report, correspondence and invoices or estimates within 10 days of being told that a dispute has been registered with TDS whether or not the Agent/Member or the other party want to contest it. Failure to do so will not delay the adjudication but the TDS will take appropriate action to recover the deposit and discipline the Agent/Member.
• The sum in dispute must be remitted to The Dispute Service Ltd within 10 days of being requested to do so, whether or not the parties wish the ICE to resolve the dispute.
• The ICE will aim to resolve the dispute within 28 days of receiving the final documentation that is once all the evidence considered necessary has been gathered or requested and a suitable time period has been allowed for submission.
• TDS will pay out the money within 10 working days of the decision of the ICE or instruction of the court as appropriate.
• The time-scale specified may be varied at the discretion of the ICE if he considers it necessary to seek legal or other expert advice, or in exceptional circumstances which affect the ability of either party to the Tenancy being able to provide information promptly.
• The Agent/Member and the parties to the Tenancy must co-operate with the ICE in the consideration of the dispute and follow the recommendations of the ICE concerning the method of resolution of the dispute.
• If one party raises a dispute with TDS the TDS will contact the other party giving a right to reply within 10 days. If the other party fails to reply TDS will make their adjudication and decision upon the information already held and find accordingly for the party raising the dispute.
• If the landlord or the Agent are unable to contact the Tenant despite making reasonable efforts to do so, or the Tenant is unable to contact the landlord or the Agent despite making reasonable efforts to do so, action must be taken through the County Court system to get a judgement for the return of or deductions from the Deposit because TDS are specifically excluded under the Statutory Instrument from adjudicating under these circumstances.

The Landlord confirms that the information provided to the Agent (delete if Landlord) and the Tenant is accurate to the best of his knowledge and belief and the Tenant has had the opportunity to examine the information.

The Tenant confirms he has been given the opportunity to examine this information. The Tenant confirms by signing this document that to the knowledge of the Tenant the information above is accurate to the best of the Landlord's knowledge and belief.

Signed by the Tenant: __________________________________________________________

Signed by the Landlord/Agent:

__________________________________________________________

CLAUSES TO GO INTO THE TENANCY AGREEMENT

• The tenancy deposit ( this clause or the relevant parts of it must be included in all tenancy agreements – see below)(delete the option which does not apply).

If clauses shown at A3 are already in the Tenancy Agreement exclude those below.

The Deposit of £[……] is paid by the Tenant to the Landlord/Agent

OR

by me/us [name, address and contact details] on behalf of the Tenant.

• The deposit is held by (delete the option which does not apply):
• The Agent as Stakeholder. The Agent is a member of the Tenancy Deposit Scheme.

OR

• The Landlord. The Landlord is a member of the Tenancy Deposit Scheme.
• Any interest earned will belong to (delete the options which do not apply):
• the tenant;
• the agent;
• the person paying the deposit on behalf of the tenant;
• the landlord .
• The Deposit has been taken for the following purposes (delete those which do not apply if the clauses are already in the Tenancy Agreement.)
• Any damage, or compensation for damage, to the premises its fixtures and fittings or for missing items for which the tenant may be liable, subject to an apportionment or allowance for fair wear and tear, the age and condition of each and any such item at the commencement of the tenancy, insured risks and repairs that are the responsibility of the landlord.
• The reasonable costs incurred in compensating the landlord for, or for rectifying or remedying any major breach by the tenant of the tenant's obligations under the tenancy agreement, including those relating to the cleaning of the premises, its fixtures and fittings.
• Any unpaid accounts for utilities or water charges or environmental services or other similar services or Council Tax incurred at the property for which the tenant is liable.
• Any rent or other money due or payable by the tenant under the tenancy agreement of which the tenant has been made aware and which remains unpaid after the end of the tenancy.
• Protection of the deposit (this clause must be included in all Tenancy Agreements. This is not optional.)

The Deposit is safeguarded by the Tenancy Deposit Scheme, which is administered by:

The Dispute Service Ltd

PO Box 541

Amersham

Bucks

HP6 6ZR

phone 0845 226 7837

email deposits@tds.gb.com

fax 01494 431 123

• At the end of the tenancy
• The Agent/Member must tell the tenant within 10* working days of the end of the tenancy if they propose to make any deductions from the Deposit
• If there is no dispute the Member/Agent will keep or repay the Deposit, according to the agreed deductions and the conditions of the tenancy agreement. Payment of the Deposit or any balance of it will be made within 10 working days of the Landlord and the Tenant agreeing the allocation of the Deposit.
• The Tenant should try to inform the Member/Agent in writing if the Tenant intends to dispute any of the deductions regarded by the Landlord or the Agent as due from the deposit within 20 working days * after the termination or earlier ending of the Tenancy and the Tenant vacating the property. The Independent Case Examiner (“ICE”) may regard failure to comply with the time limit as a breach of the rules of TDS and if the ICE is later asked to resolve any dispute may refuse to adjudicate in the matter.
• If, after 10 working days * following notification of a dispute to the Agent/Member and reasonable attempts having 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 the dispute will (subject to A 4.5 below) be submitted to the ICE for adjudication. All parties agree to co-operate with the adjudication.
• The statutory rights of the Landlord and the Tenant to take legal action through the County Court remain unaffected by clauses (insert numbers) above.

This clause is optional if the Deposit exceeds £5000

• If the amount in dispute is over £5,000 the Landlord and the Tenant agree to submit to formal arbitration through the engagement of an arbitrator appointed by the ICE although, with the written agreement of both parties, the ICE may at his discretion accept the dispute for adjudication. The appointment of an arbitrator will incur an administration fee, to be fixed by the Board of The Dispute Service Ltd from time to time, shared equally between the Landlord and the Tenant; the liability for any subsequent costs will be dependent upon the award made by the arbitrator.

B. Terms of business

The following clauses must be inserted in the relevant section of the Terms of Business between the agent and the landlord.

The word “Landlord” should be explained in the definitions section of the Terms of Business and the name(s) of the Landlord should be specified in the document.

If the word “Premises” is used instead of “property” alter the wording in the following clauses.

Depending upon the formality of the document the relevant words such as “you” and “we” should be deleted.

“Deposit” should be explained in the definitions as should “Stakeholder”.

Define “ICE” as the “Independent Case Examiner of The Dispute Service” .

---------------------------------------------------------------------------------------------------------------------

• The tenancy deposit The Agent is a member of the Tenancy Deposit Scheme, which is administered by:

The Dispute Service Ltd

PO Box 541

Amersham

Bucks

HP6 6ZR

phone 0845 226 7837

email deposits@tds.gb.com

fax 01494 431 123

• If we are/ the Agent is instructed by you/the Landlord to hold the Deposit, we/ the Agent shall do so under the terms of the Tenancy Deposit Scheme.
• The Agent holds tenancy deposits as Stakeholder (if not already specified within the Tenancy Agreement).
• At the end of the tenancy covered by the Tenancy Deposit Scheme

B4.1 If there is no dispute we/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.

B4.2 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 (subject to B 4.3 below) be submitted to the ICE for adjudication. All parties agree to co-operate with any adjudication.

B4.3 When the amount in dispute is over £5,000 the Landlord and the Tenant will agree by signing the Tenancy Agreement to submit the dispute to formal arbitration through the engagement of an arbitrator appointed by the ICE although, with the written consent of both parties, the ICE may at his discretion accept the dispute for adjudication. The appointment of an arbitrator will incur an administration fee, to be fixed by the Board of The Dispute Service Ltd from time to time, shared equally between the Landlord and the Tenant. The liability for any subsequent costs will be dependent upon the award made by the arbitrator.

B4.4 The statutory rights of either you/the Landlord or the Tenant(s) to take legal action against the other party remain unaffected.

B4.5 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.

B4.6 If there is a dispute I/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 or I/we 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 me/us.

B4.7 The Agent/we 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.

• Incorrect Information

If the Landlord warrants that all the information he has provided to the Agent is correct to the best of his knowledge and belief. In the event that the Landlord provides incorrect information to the Agent which causes the Agent to suffer loss or causes legal proceedings to be taken the landlord agrees to reimburse and compensate the Agent for all losses suffered.

The following clauses can be inserted if the Agent allows the Landlord to hold the Deposit outside TDS.

• If you/the Landlord decide(s) to hold the Deposit yourself, we will transfer it to you within 5 days of receiving it. You/the Landlord must then register it with another Tenancy Deposit Protection Scheme within a further 9 days if the Tenancy is an Assured Shorthold Tenancy. If you fail to do so the Tenant can take legal action against you/the Landlord in the County Court. The Court will make an order stating that you/the Landlord 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/the Landlord to pay compensation to the Tenant of an amount equal to three times the Deposit. You/the Landlord will be unable to serve a Section 21 Notice on your Tenant until compliance with the above conditions and the Court will not grant you/the Landlord a possession order. We have/the Agent has no liability for any loss suffered if you/ the Landlord fail to comply.

OR

If you/the Landlord decide(s) to hold the Deposit and the Tenancy is an Assured Shorthold Tenancy you/the Landlord must specify to us/the Agent prior to the start of the Tenancy under which other Tenancy Deposit Protection Scheme the Deposit will be covered. If the Deposit is covered by Tenancy Deposit Solutions you/the Landlord must provide proof of membership, together with a copy of the nsurance policy before the Deposit can be released. If the Deposit is to be sent to the custodial scheme known as the Deposit Protection Scheme we/the Agent will forward the Deposit to the DPS and register the details of the Tenancy on your behalf OR give you a cheque for the amount of the Deposit made payable to the Deposit Protection Scheme for you to forward within nine days.

* These time scales can be changed by agreement with the tenant in individual cases or by the contract used as standard by the agent.