Tenancy Deposit Schemes Flashcards
Deposits for ASTs must be protected by what?
An approved deposit scheme
The aim of Legislation regarding deposits is to what? (3 points)
- Promote good practice and deposit handling
- Assist in resolving deposit disputes
- Encourage the production of inventories and schedules of condition
How many approved schemes are there?
Three
All approved schemes operate 2 types of scheme, what are they?
- A custodial scheme
2. An insurance based scheme
The scheme must be notified of the details of a deposit, or paid the deposit, within how long of taking the deposit?
30 days
The tenant must be informed of the deposit scheme being used and provided prescribed information, within how long?
30 days of deposit payment
The deposit must be returned within how long, following agreement/settlement at the end of the tenancy?
10 days
If the rules are not followed, what are the consequences? (3 points)
- The landlord cannot serve a section 21 notice
- If the tenant applies to the county court, the deposit will need to be repaid to the tenant or protected in a scheme
- The court must order the landlord to pay a penalty of between one and three times the amount of the deposit to the tenant
What are they key points of the custodial schemes? (2 points)
- Open to all landlords and agents
2. Keeps the interest on the deposit to to pay for the scheme
Who can join the TDSL insurance based scheme?
Landlords and agents
Who can join the TDS and DPS insurance based schemes?
Regulated agents and landlords
How does an insurance based scheme work?
The agent can keep any interest on the deposit as long as it is agreed in the terms of business with the landlord and tenant
The dispute service offered by the scheme is not mandatory, but free to use, true or false?
True
What helps to resolve disputes at the end of a tenancy?
Inventories and schedules of condition
The tenancy agreement should contain a deposit clause stating what?
The landlord is allowed to claim against the deposit
