When to Protect

by | 20 Dec 2010 | Deposits and Tenancy Deposit Schemes (England), Deposits and Tenancy Deposit Schemes (Wales), Guidance | 2 comments

A deposit must “as from the time it is received” be dealt with in accordance with an approved scheme [s.213(1) Housing Act 2004]. Note, in that sub-section, there is no 30 day time limit which is important for agents. If an agent passes the deposit to his landlord client for protection and that landlord does not then protect the deposit, the agent will

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2 Comments

  1. 1659
    1659 on 25/01/2011 at 1:59 am

    Hi Adrain,

    Does the landlord have 14 days from the date a deposit is received by the landlord’s AGENT, or does the 14days start from the date the LANDLORD receives it?

    Regards,
    John Baskin

  2. adrianthompson
    adrianthompson on 25/01/2011 at 10:55 am

    Hello

    The definition of landlord includes agent so the time starts from when it is first received by the agent in this scenario.

    I assume you mean by the way the question is worded that the agent is receiving the deposit then passing this to the landlord for protection? If this is correct, then I’m afraid this is not good! It is our strong view that the person who receives MUST protect and the passing to another person to protect is prohibited.

    Of course, if the landlord then protects there should be no problem but in my view, agents who do this and then find the landlord has not protected (or given prescribed information) will find themselves liable to pay 3 x deposit compensation and not the landlord (for confirmation of this see Draycott v Hannells linked in the above article).

    Many thanks

    Adrian