UK Landlord Forum / Life

I know you've heard it all before but this one is slightly different...

Bought a house with sitting tenants 4 yrs ago,
The deposit was withdrawn by previous landlord at point of sale which the tenant wasn't aware of (they didn't agree or sign)
Then it was  paid to me via my solicitor from their solicitor  after the exchange  of contracts a few wks later.

So it's been in my bank 4 yrs ( I know I know)  which I don't notice as the amount received included one wks rent which overlapped  when I took over.

Once I found out / remembered I quickly started a new AST Which they signed  and I sent the deposit off to the dps and gave the tenants all the correct paperwork  ie gas epc how to rent and prescribed info.

If they make a claim have I got any chance of getting away with ... I never received bond from them, they didn't sign to realise from previous landlord and I got them to sign a new AST with all the correct paperwork completed in time once I realised I had it indirectly.

Would a section 21 be valid also if needed to move them on?

Clutching at straws I know but ....?

Naughty...!

If they make a claim how will you be able to say you never got the deposit if you just protected it? Assuming they make a claim they will know when to whom the deposit was paid and when.. I assume the solicitor assigned the previous Tenancy agreement from old landlord to you(?) so in that case you take on all the obligations of the old landlord - the deposit should either have remained protected and the landlord name transferred or it should have been returned to the tenant to be reprotected.  I don’t see how the previous landlord recovered the deposit money to give it to his solicitor unless it was never protected at all - because the deposit agency would not release it without the tenants agreement.

Your hope is that they don’t realise anything for 6 years from the time of breach after which they will no longer be able to claim.

You’d likely get away with a s21 if all your paperwork was in order and the tenant didn’t claim/realise the issue with the deposit because in your accelerated possession application all the paperwork wouldn’t point to any issue.

Generally speaking, you assumed the obligations and liabilities of the previous owner/landlord that you bought the place from. So if it was protected correctly with prescribed information served on time, then there's no liability for a penalty from missing the 30 days deadline. It is possible to claim for a penalty where the deposit is not continued to be held in accordance with the scheme the landlord told the tenant about, but from my reading of it, unlike missing the 30 days deadline one the liability from the continued breach cease when the deposit is returned. So assuming no new tenancy started in the 4 years the deposit was unprotected (including "renewal", "extension", or statutory periodic tenancy after the end of a fixed term), then I don't think there's any liability for a s214 penalty from what you described. If there is, like THEANGRYLANDLORD said above, wait/hope for 6 years limitation.

Prohibition against s21 only relates to the current tenancy. If you protected the deposit within 30 days of the new tenancy being granted, and have served PI correctly, that's not an issue.

I hope you have copies of evidence from the seller that valid GSC was served before the tenant occupied though, otherwise probably no s21 ever....

I received the deposit from my solicitor  via the vendors solicitor 3 wks after completion with another amount ( owed rent) together hence I missed the £450 as £765  Was received in total,  n

The tenants never gave me the deposit they didn't even know it had been released from dps so they say...( how who knows)
They've signed 4 new AST since I bought the house stating no deposit taken.

Because they now are leaving the bond has come up so had to check back on my paperwork.
They also  agreed they hadn't given me any deposit directly or indirectly as far as they knew.

So I checked my statements form 4 yrs ago to see the solicitors payment to me! I know I know!
I was honest with tenants and explained the above and deposited it in the correct way with all relevant paperwork.

I know it's all down to me so here's some questions...

If they take me to court do the tenant have to pay to do this or is it free in small claims?

What's likelihood the above explanations will help lower the fine?

If I give them back all the deposit now before  they leave  can they still  take it any further?

The Risk  them leaving the house a mess / damaged  as no deposit to to claim back  V 3x bond fine ?

Quote from: FORZA AZZURRI on January 28, 2019, 11:33:05 AM
Because they now are leaving the bond has come up so had to check back on my paperwork.
...

So I checked my statements form 4 yrs ago to see the solicitors payment to me! I know I know!

That is inconsistent with this.

Quote from: FORZA AZZURRI on January 26, 2019, 11:09:35 AM
Once I found out / remembered I quickly started a new AST Which they signed  and I sent the deposit off to the dps and gave the tenants all the correct paperwork  ie gas epc how to rent and prescribed info.

Which is it?

QuoteIf they take me to court do the tenant have to pay to do this or is it free in small claims?

All court claims, small claims or otherwise, requires an issue fee. Exemptions exist for those on low income or on certain benefits. If they did paid an issue (and other) fees, they can recover that from you in cost when they win the case.

QuoteIf I give them back all the deposit now before  they leave  can they still  take it any further?

Yes.

QuoteThe Risk  them leaving the house a mess / damaged  as no deposit to to claim back  V 3x bond fine ?

It's 1x - 3x the amount of the deposit per tenancy.

They signed a new  6 months AST  when I found out in September 're bond  its due to end in March ,
  I gave them all the documents required at point of signing so currently it's protected correctly but previous 3 years wasn't as explained