How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask Joshua Your Own Question
Joshua
Joshua, Lawyer
Category: Law
Satisfied Customers: 30008
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
35043042
Type Your Law Question Here...
Joshua is online now

We can confirm there is no legal requirement to protect the

Customer Question

We can confirm there is no legal requirement to protect the deposit for a company let, However now you have chosen to protect the deposit with us you are bound by our terms and conditions. In addition, as the tenancy is not an assured shorthold tenancy, we reserve the right to charge a fee of £500.00 plus VAT, or 10% of the deposit amount, whichever is greater for the administration of the dispute. Where possible, we will deduct this from any amount awarded to the Landlord as a result of the Decision. If there is no award to the Landlord, or the amount awarded does not cover the fee, the Landlord must pay us within 14 Calendar Days of our request for payment.The case is now in evidence gathering status, Please be sure to send us your evidence by 24th November 2021, If we do not receive your evidence we will pay out to the other parties in line with our terms and conditions.Alternatively we can stop the dispute going into DR by letting us know legal action is being sought and a court order is produced or Both parties have come to an agreement and both parties contact us at***@******.*** confirming what is doing released to each party.
JA: Where are you? It matters because laws vary by location.
Customer: Southampton
JA: What steps have you taken so far?
Customer: Email to dps
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: Please read message above
Submitted: 13 days ago.
Category: Law
Customer: replied 12 days ago.
The above message is dps response. How can I reclain deposit from dps? I am landlord. 5 years ago agent tola me its AST and tenant was a company.
Customer: replied 12 days ago.
Deposit was registered with dps online in 2016 as you would do for AST
Expert:  Virtual-mod replied 12 days ago.
Hello,

I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.

I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!
Customer: replied 12 days ago.
Not sure how would cancelling the question would help????
Expert:  Joshua replied 12 days ago.

Hello and thank you for your question. My name is ***** ***** I will be very pleased to assist you. I'm a practising lawyer in England with over 15 years’ experience. Please be aware that although I will endeavour to reply to you promptly, I am also in full time private practice and so I may not be available to respond immediately and it may also take me a few minutes to prepare a reply. The site will notify you as soon as I respond. I look forward to working with you to answer your question fully.

I am very sorry to read of the above and I imagine how frustrating it must be. I will certainly try to clarify the position for you.

May I confirm if you still require assistance with the above please?

Customer: replied 12 days ago.
please
Customer: replied 12 days ago.
I do not agree to pay £44
Customer: replied 12 days ago.
Please cancel phone call
Customer: replied 12 days ago.
Also refund £44
Expert:  Joshua replied 12 days ago.

thank you. Customer services will be able to assist you with a refund in respect of the phone call. With your permission, I will provide you with the details once we have completed our chat.

  1. May I confirm that you have evidence that the agent advised you to protect the deposit some 5 years ago please?
  2. from what you say, have you agreed to use the alternative dispute resolution process by the deposit protection service?
Customer: replied 12 days ago.
Please reply here
Customer: replied 12 days ago.
Please send solicitor response here
Expert:  Joshua replied 12 days ago.

thank you. Could you kindly assist me with my above two enquiries please? For your ease of reference, I will reproduce them again below:

  1. May I confirm that you have evidence that the agent advised you to protect the deposit some 5 years ago please?
  2. from what you say, have you agreed to use the alternative dispute resolution process by the deposit protection service?
Customer: replied 12 days ago.
Agent drafted and signed tenancy. It says AST and company signed it.
Customer: replied 12 days ago.
I do not have written evidence that agent asked me to protect deposit unless I search through 5 years old emails.
Expert:  Joshua replied 12 days ago.

thank you. My the query was whether you have yet agreed to use the dispute resolution service to resolve the dispute?

Customer: replied 12 days ago.
I agreed to use dispute resolution when dps refused to repay deposit to me when I told them its company let. Once I agreed to dispute resolution I challenged their jurisdiction and they sent email in message above
Customer: replied 12 days ago.
I agreed to use dispute resolution by clicking a button on dps but as per their email above I can withdraw my consent?
Customer: replied 12 days ago.
I have now asked them to suspend dispute resolution till I decide further. They have not responded to this as yet
Expert:  Joshua replied 12 days ago.

thank you. The advice given to you by the agent is wholly defective as is the agreement that they have prepared. A company tenant cannot enter into an assured short hold tenancy and the agreement they prepared despite the label they have given it will take effect as a contractual tenancy not as an assured short hold tenancy. Accordingly, you may wish to make a complaint to the agent as regards ***** ***** and service they gave and carried out for you and asked them to confirm that they will cover any losses you suffer in terms of costs as a result of their poor advice in this respect. You have up to 6 years to make a claim against the agent and you can use the property redress service of which they must be a member to pursue any claim. This is started by raising a formal complaint and then you have the right to escalate your claim to the ombudsman service having waited either for their response or eight weeks whichever is the earlier.

https://www.theprs.co.uk/

https://www.tpos.co.uk/

in terms of the current dispute resolution, if you have already agreed to use the dispute resolution service, there is no specific facility in the scheme rules for you to withdraw their consent but anybody can issue proceedings against another party at any time. My experience is that the dispute resolution services will defer to court providing proceedings are issued before they have made any substantive decisions in relation to the dispute. This seems to be confirmed by the email that has been received. If you decide to proceed with court proceedings, then you will need to take steps to issue proceedings because you have agreed to use the ADR process now and I note that there is a deadline of 24th November to provide evidence in this respect. Accordingly, the steps that would appear to be required would be to notify the dispute resolution process that your intention is to issue proceedings immediately and provide them with a copy of the issue notice before the above deadline else you may find a make a decision against you in default by which it would seem to me you would be about having agreed to use the ADR process.

https://www.gov.uk/make-money-claim

Customer: replied 12 days ago.
The deadline of 24th Nov is for sending evidence not for decision. Please advise if i make small money claim online - against dps or tenant or both? Tenant is also disputing claim on deposit.
Expert:  Joshua replied 12 days ago.

thank you - I noted as much. To be clear, what I was suggesting is not that this was the deadline for a decision that rather, if you failed to either submit evidence or advise them that you have issued proceedings prior to this date, they may proceed with the decision in relation to the claim without further reference to you. If you decide to issue proceedings in court, these should be against the tenant alone.

Customer: replied 12 days ago.
I have raised a complaint to dps, to say £500 is not applicable. I will submit evidence and hopefully they will look into this as company let agreement and do not apply housing act. Please send me wording I can send to dps so that they see this as company let and do not treat tenant favorably as they would normally do for AST
Expert:  Joshua replied 12 days ago.

thank you. The authority for the reason the tenancy cannot be assured short hold tenancy is section 1(1)(a) of the housing act 1988 which sets out that a tenancy will be assured short hold tenancy as long as the tenant or tenant's are individuals. Plainly, a company tenant is not an individual and therefore this cannot be an assured short hold tenancy because the Act says it cannot be.

https://www.legislation.gov.uk/ukpga/1988/50/section/1

I do not think it will be difficult to convince the adjudicator as assuming they are properly qualified, they will be well aware that the company cannot hold an assured short hold tenancy the authorities there if you feel it is needed

Customer: replied 12 days ago.
Please also send me relevant clauses from any law, DPS website or FAQs or their terms and conditions that state that DPS cannot protect deposit for company let and they cannot charge £500 fee.. Also please review DPS site and confirm that they do not ask before protecting deposit ghat its company let or AST and that they will charge fee
Expert:  Joshua replied 12 days ago.
I'm afraid there won't be any. You can voluntarily choose to protect a non AST deposit. The point is you don't have to. However if you voluntarily choose to then it will be bound by the deposit protection rules as fundamentally these are contractual
Customer: replied 12 days ago.
What are deposit protection rules?
Expert:  Joshua replied 12 days ago.

A summary can be found here:

https://www.gov.uk/tenancy-deposit-protection

Customer: replied 12 days ago.
Please advise what are relevant rules for company let on this link
Expert:  Joshua replied 11 days ago.

A company let is a contractual tenancy with virtually no regulation other than some limited protection under the Protection From Eviction Act which does not relate to deposits. There is no regularity requirement to protect a deposit whatsoever.

Expert:  Joshua replied 11 days ago.

I trust the above was of assistance and that you do not have any follow up questions for now. If there is anything else I can help with please reply back to me though.

Customer: replied 11 days ago.
Please advise best course of action to recover deposit without paying fee to dps
Expert:  Joshua replied 10 days ago.

I believe we have discussed the approach above - namely issuing proceedings against the other party directly and notifying the DPS. Alongside this you have the option of a complaint to the agent for indemnity for any loss due to their faulty advice.

Expert:  Joshua replied 9 days ago.

Thank you again for visiting JustAnswer and see you again in the future I hope.