The following Restructuring & Insolvency guidance note Produced in partnership with Robert Hantusch of Three Stone provides comprehensive and up to date legal information covering:
It is a common feature of commercial leases that a rent deposit is paid to be held either by the landlord or by a third party as stakeholder to provide a fund to meet claims for rent should the tenant fail to pay the rent when it falls due.
This note will cover:
need for a rent deposit deed
types of rent deposit deed
deposit held by the landlord on trust for the tenant
deposit held by the landlord in the name of the tenant and charged to the landlord
deposit held by a third party stakeholder for the tenant but charged to the landlord
rent deposits under residential tenancies
If a rent deposit is paid it is usual and prudent for the terms under which it is paid and held to be set out separately from the lease in a rent deposit deed, which defines the rights and obligations of the parties.
In the absence of such a deed, the parties rights are likely to be entirely contractual, with the property in any deposit paid retained by the tenant if the deposit is required to be and is held in a separate account, or held by the landlord if he is not required to and does not hold the deposit in a
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