Advice on non-protected deposit

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    Advice on non-protected deposit

    Hi All

    I find myself in a pickle partly of my own making and I would like advice on the best way forward please.

    I originally let my house using a letting agent, who subsequently went bust. At this point, I took legal advice and found out that the LA did not put the deposit in a protection scheme as required. In fact I was completely unaware of this obligation and I had gone with an agent to ensure I did everything right. I was out of pocket by 2 months rent plus I had the liability for the non-protected deposit of another months rent.

    At this point, my solicitor provided me with an AST agreement which became active. She advised me to protect the deposit even though I had not received this money myself and was out of pocket. For a number of reasons, I never got around to putting the deposit in a protection scheme.

    The advice I need is what I should do about the deposit in view of the fact that I'd like to give notice to quit under section 21. Should I put it in a scheme now? Or is it too late? I am willing and able to return the deposit to my tenant but realise she could use the law against me, especially if she doesn't want to move out right now.

    Any advice would be gratefully received.
    Thanks
    K

    #2
    You will need to protect the deposit before you can issue a S21. The S21 would be invalid if you did not. You can still do that if you use DPS.
    I offer no guarantee that anything I say is correct. wysiwyg

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      #3
      JTA is perfectly right, the alternative is to refund the deposit in full. Once there is no deposit held by the landlord, there is no possibility of a claim.

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        #4
        Thanks!

        Thank you both for your quick replies.

        I've started the process of protecting the deposit; just waiting for the bank transfer to complete.

        I'd still like to know if there are any possible complications awaiting because the deposit wasn't protected within the 14 days stipulated by law.

        K

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          #5
          It's very unlikely, after all the legislation is there to make sure the deposit is protected and you have done that now.
          I offer no guarantee that anything I say is correct. wysiwyg

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            #6
            A recent High Court case - Draycott v Hannells Lettings - verified that 'late' protection with DPS wasn't a problem.

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