2010
What can you do to beat the recession? Can you protect your assets and your business? IS there a fasta dn low cost way to plan the sale of your property? Come to an informal seminar and learn more. You always have a choice - make sure you make the right one!

Tenancy Deposits
Rules for landlords to follow and to prtect tenants regarding deposits details

Anti Money Laundering adn Counter terrorism
New and deatiled amended rules to combat money laundering came into force on and after 15 December 2007. As a result professional advisers must ask more questions and in some cases require more information and documentation from clients before they can accept instructions to act or advise. We will need to ask for more information in connection with acting for companies, partnerships, trusts, other bodies of people (such as clubs) and anyone who is acting as agent for another person. We may also need to go through the identification and verification procedures for shareholders, directors, managers, partners, trustees, beneficiaries, club members, anyone acting under a power of attorney, a receiver, administrator or insolvency practitioner or anyone appointed as an agent or broker of any kind. In addition, the exemption under the old rules for existing clients from the procedures for identification and verification has been removed. As a matter of policy we operate the new rules in relation to all clients and all matters. All we ask is that you attend at our offices with - your passport or picture driving licence - an original council tax, gas or electricity bill addressed to you and dated within the last three months For Data Protection Act purposes, we must also advise you that we are required to retain this information for at least five years.

HIP No More
The new government has kept one of its manifesto promises by suspending the HIPs legislation today with immediate effect. EPC’s remain though under EU law but they are changing too: The EPC has to be commissioned before the start of marketing Commissioning means the Inspector has been asked to prepare the EPC and it has either been paid for or payment has been promised The person acting for the seller on the sale must be satisfied commissioning has taken place The seller and seller’s agent must make reasonable efforts to get the EPC within 28 days Penalties will be imposed for breaching these relaxed requirements The EPC will have a life of 10 years, not 3 years as at present or 3 months as originally envisaged. This brings it in line with EPC’s for rented property. Let marketing begin

    Landlord & Tenant

The rising cost of residential property means that more and more people especially in London and the Home Counties have to consider long term renting for their housing needs.

An Assured Shorthold Tenancy is often the answer particularly when moving to a new area that is unfamiliar.

But even this simple form of tenancy arrangement has come before the courts to scrutinise the wording of both agreements and notices to terminate.

Landlords and tenants each need to take some preliminary advice before embarking on such a relationship.

More and more consumer legislation is also impacting on the rental sector with requirements as to minimum standards and the maintenance and servicing of equipment and installations.

LANDLORDS – BE @WARE – 6 April 2007

This is the date when new rules for taking and holding tenant’s deposits come into force.

Failure to comply can both affect your right to regain possession AND lead to an order for the deposit to be paid into a scheme or to the tenant AND a fine, payable to the tenant, of up to three times the amount of the deposit.

Disputes over retentions at the end of a tenancy will go to arbitration and certain documents MUST be attached to the landlord’s claim meaning that the correct documentation MUST be in place at the beginning of the tenancy.

The new rules ONLY affect Assured Shorthold Tenancies in England and Wales created after 6 April 2007 – a renewal after 6 April 2007 of an existing tenancy will be affected by a ‘holding over’ to create a periodic tenancy will not.

The new rules do not apply to –

• Resident landlords – those living in the property with the tenant
• Landlords of properties where the rent is over £25,000 a year
• Company lets
• Student accommodation let directly by universities or colleges

If you as a landlord take and/or hold a deposit from a tenant you must belong to a tenancy deposit protection scheme.  If your letting agent takes and /or holds such a deposit on your behalf that agent must register with such a scheme.

There are two types of scheme –

1. A custodial scheme where the deposit is paid to the custodian; or
2. An insurance backed scheme where the agent/landlord holds the deposit.

There are two approved insurance backed schemes to choose from –

1. Tenancy Deposit Solutions Limited – a scheme run by the National Landlords Association and Hamilton Fraser Insurance; and

2. The Tenancy Deposit Scheme run by The Dispute Service.

The custodial scheme is free; the insurance schemes are not.

The custodian scheme, The Deposit Protection Service (DPS) with a website at www.depositprotection.com, is run by a company that has done the same in Australia for the last eight years.  DPS is to be funded by the interest earned on the deposits.

There are no preconditions or assessments for membership and it is open to letting agents and landlords alike.

    The scheme will have

• an on-line facility for registering, making deposits, transfers and repayments

• a help line manned during office hours

• an independent ADR scheme run by the Chartered Institute of Arbitrators (CIA) to resolve disputes over refunding deposits.

• Tenant pays deposit to landlord or letting agent
• Deposit paid to DPS within 14 days of receipt
• Prescribed information given to tenant also within 14 days of receipt of deposit
• DPS provides confirmation of receipt and details of scheme to landlord and to tenant
• At end of tenancy if landlord and tenant agree on repayment of deposit the scheme is advised and the deposit divided as agreed and paid out within 10 days
• In event of a dispute, any undisputed amount is returned to the tenant and the balance continues to be held until a decision of ADR or court proceedings is reached

For insurance-based schemes the procedure is slightly different-

• Tenant pays deposit to landlord or letting agent
• Landlord retains the deposit and pays premium to insurer
• Prescribed information given to tenant within 14 days of receipt of deposit
• At end of tenancy, if the landlord and tenant agree on how the deposit should be divided the landlord returns the agreed sum to the tenant
• In event of a dispute, any undisputed amount is returned to the tenant and the balance is handed over to the scheme for safe keeping until a decision of ADR or court proceedings is reached

If the landlord fails or refuses to comply, the insurance arrangements come into play to ensure that the tenant receives back the deposit or that part of it to which he or she is entitled.

For more information contact Michael.Garson@kaganmoss.co.uk