LEGAL SYSTEMS & SKILLS

Legal Systems & Skills: The Case Analysis of Tiensia v. Vision Enterprises Ltd

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Legal Systems & Skills: The Case Analysis of Tiensia v. Vision Enterprises Ltd

Introduction

The Court of Appeal has clarified the circumstances in which a landlord wants to suffer the draconian penalties for failing to place an assured short hold tenant's deposit in to authorized scheme. Provided that the landlord has complied with the statutory requirements before the court hearing, it will be spared. Under the Housing Act 2004 (RA 2004) landlords must deposits paid by tenants Safe Guard under Assured Shorthold Tenancies (ASTs) by placing them in authorized to "Tenancy Deposit Scheme".

Within 14 days of receiving the deposit, the legislation obliges landlords to a) comply with the "initial requirements" of an authorized tenancy deposit scheme (that is take steps to protect the deposit under a scheme), and b) furnish the tenant with certain prescribed information relating to the protection of its deposit.

Where a landlord has not complied with the "initial requirements" of a tenancy scheme or has not furnished its tenant with the prescribed information, the court must (inter alia) order the landlord to pay to the tenant a sum equal to three times the amount of deposit. For some time there has been a debate over whether a landlord has to pay such a penalty if it has protected the deposit or given the prescribed information late (that is after the 14-day time limit). A recent Court of Appeal case has clarified the position.

Factual Information Regarding the Case

The tenants had paid a deposit in respect of their AST, but the landlord, in breach of its statutory obligations had not put into the deposit scheme and authorized for the tenants had not given the prescribed information. The tenants later fell into arrears. The landlord had started proceedings for possession and payment of the arrears. The tenants counterclaimed for payment of a penalty sum of three times their deposit on the ground that the landlord's obligations in respect of the deposit had not been complied with within 14 days. Before the date of the court hearing, the landlord took the Necessary Steps to Ensure that the deposit was protected in the scheme of authorized and the prescribed information sent to the tenants. The landlord argued that such late compliance was sufficient to provide a complete defence to the penalty provisions of RA 2004th.

Tenancy in Common Law

Rent a form of property contract or agreement, for exclusive possession of the property for a specified time, subject to payment of rent. For example, in agriculture and extractive industries pay for temporary use of land or subsoil. It includes natural rent (ground rent), depreciation, and interest for the use of tangible assets. The fruits, products and income received by the lessee from the use of the leased property in accordance with the contract, are his property.

The provisions relating to leases since 1 Was September 2001 in the 535 et seq of the Civil Code ...